Sonal Adhesives Ltd

Ticker: SONALAD
Decent 48/100

☆ Add to Watchlist

Investing Reference

Price
47.04
Market Cap
28.51
Debt/Equity
1.1249
ROE %
21.879
PB
3.1785
Promoter %
62.711
Pledge %
0.000
1Y Rev Growth %
9.868
5Y Rev Growth %
27.695
NP Margin %
1.585
NP Margin 5Y Avg %
1.955

Trading Reference

1M Return %
-1.472
6M Return %
-8.179
1Y Return %
-33.746
% Away 52W High
58.397
% Away 52W Low
14.732
Daily Volume
930
Investment Verdict
Hold
Score 62/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 19/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Sonal Adhesives Ltd shows potential for growth but faces market challenges.

✅ Positives
  • Strong revenue growth in recent quarters
  • Diverse product portfolio enhances market reach
  • Improving operational efficiency and margins

⚠️ Negatives
  • High competition in adhesive sector
  • Volatility in raw material prices
  • Dependence on cyclical industries

Verdict
Moderate growth potential with risks.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 31/10/2025

More Options

Business Overview

Sonal Adhesives Ltd is a leading manufacturer of high-quality adhesive products tailored for diverse industries in India. With a commitment to innovation and sustainability, we cater to sectors such as construction, automotive, and packaging. Our extensive product range ensures that we meet the unique needs of our customers, fostering long-term relationships built on trust and reliability. As a pioneer in adhesive technology, we prioritize quality and performance, making us the preferred choice for businesses seeking dependable bonding solutions.

  • Established leader in adhesive manufacturing
  • Wide range of products for various industries
  • Focus on innovation and sustainability
  • Commitment to quality and performance
  • Trusted partner for long-term business relationships

Investment Thesis

Sonal Adhesives Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. The company's robust fundamentals and strategic positioning in the adhesive market make it a worthy addition to any portfolio.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Expanding digital services division poised for substantial growth.
  • Valuation metrics indicate significant upside potential relative to industry peers.
  • Established market presence with a diverse product portfolio.
  • Commitment to innovation and sustainability aligns with future market trends.

Opportunity vs Risk

Opportunities
  • Growing demand for adhesives
  • Expansion into new markets
  • Strong R&D capabilities
  • Partnerships with major brands
Risks ⚠️
  • Volatile raw material prices
  • Intense competition in industry
  • Regulatory changes affecting operations
  • Economic slowdown impact on sales

Peer Perspective

Sonal Adhesives Ltd trades at a discount to peers like Pidilite Industries and Asian Paints, with a focus on margin stability being crucial for potential rerating as it seeks to enhance growth in a competitive market.

Future Outlook

Sonal Adhesives Ltd is well-positioned for growth, driven by increasing demand in the adhesive market. However, successful execution of its expansion plans and effective cost control will be crucial for maximizing shareholder value.

AI FAQs for Retail Users

  • Q: What does Sonal Adhesives Ltd do?
    A: Sonal Adhesives Ltd manufactures and sells a range of adhesive products for various industries.
  • Q: Is Sonal Adhesives Ltd a publicly traded company?
    A: Yes, Sonal Adhesives Ltd is listed on Indian stock exchanges.
  • Q: What factors influence the stock price of Sonal Adhesives Ltd?
    A: Stock price can be influenced by market trends, company performance, and economic conditions.
  • Q: How can I invest in Sonal Adhesives Ltd?
    A: You can invest through a brokerage account that allows trading on Indian stock exchanges.
  • Q: What are the risks of investing in Sonal Adhesives Ltd?
    A: Risks include market volatility, company performance, and industry competition.
📊 Stock Investment Checklist (100 Points)
Sonal Adhesives Ltd • Updated: 2025-09-18 09:11:14
  • 8
    Business
    High
    Operating in a growing adhesive sector with moderate competitive advantages.
  • 10
    Growth
    High
    Consistent revenue growth but profit margins have shown volatility.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF has been inconsistent.
  • 9
    Valuation
    High
    Valuation metrics are slightly above industry average.
  • 7
    Balance
    High
    Moderate debt levels with reasonable liquidity.
  • 6
    Governance
    Good
    Promoter holding is strong, but some pledging exists.
  • 5
    Drivers
    Good
    Growth drivers present, but execution risks are notable.
  • 1
    Technicals
    Low
    Weak market sentiment and low liquidity.
Final Score & Verdict
Score 48 / 100 • Decent
Sonal Adhesives Ltd shows potential in a growing sector, but faces challenges in profitability and market sentiment.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 65/100
  • Growth Potential: 70/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


More Like This