Sonal Adhesives Intrinsic Value

SONALAD • Chemicals
Current Stock Price
₹44.90
Primary Intrinsic Value
₹27.60
Market Cap
₹26.9 Cr
-38.5% Downside
Median Value
₹27.60
Value Range
₹15 - ₹112
Assessment
Trading Above Calculated Value
Safety Margin
-62.7%

SONALAD Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹27.60 ₹22.08 - ₹33.12 -38.5% EPS: ₹2.30, Sector P/E: 12x
Book Value Method asset ₹15.00 ₹13.50 - ₹16.50 -66.6% Book Value/Share: ₹15.00, P/B: 1.0x
Revenue Multiple Method revenue ₹89.80 ₹80.82 - ₹98.78 +100.0% Revenue/Share: ₹205.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹49.83 ₹44.85 - ₹54.81 +11.0% EBITDA: ₹5.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹112.25 ₹89.80 - ₹134.70 +150.0% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹14.72 ₹13.25 - ₹16.19 -67.2% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹19.78 ₹17.80 - ₹21.76 -55.9% Revenue Growth: 15.0%, Adj P/E: 8.6x
ROE Based Valuation profitability ₹22.45 ₹20.20 - ₹24.70 -50.0% ROE: 11.1%, P/E Multiple: 12x
Graham Defensive Method conservative ₹27.86 ₹25.07 - ₹30.65 -38.0% EPS: ₹2.30, BVPS: ₹15.00
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check SONALAD share price latest .

Valuation Comparison Chart

SONALAD Intrinsic Value Analysis

What is the intrinsic value of SONALAD?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Sonal Adhesives (SONALAD) is ₹27.60 (median value). With the current market price of ₹44.90, this represents a -38.5% variance from our estimated fair value.

The valuation range spans from ₹14.72 to ₹112.25, indicating ₹14.72 - ₹112.25.

Is SONALAD undervalued or overvalued?

Based on our multi-method analysis, Sonal Adhesives (SONALAD) appears to be trading above calculated value by approximately 38.5%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 8.67 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 4.44 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 11.1% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 2.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 3.08x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹7 Cr ₹3 Cr Positive Free Cash Flow 7/10
March 2024 ₹-1 Cr ₹-2 Cr Negative Cash Flow 3/10
March 2023 ₹-1 Cr ₹-2 Cr Negative Cash Flow 3/10
March 2022 ₹19 Cr ₹19 Cr Positive Free Cash Flow 8/10
March 2021 ₹4 Cr ₹4 Cr Positive Free Cash Flow 8/10