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Sona Machinery (NSE:SONAMAC) Net-Net Working Capital : ₹28.79 (As of Mar. 2024)


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What is Sona Machinery Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Sona Machinery's Net-Net Working Capital for the quarter that ended in Mar. 2024 was ₹28.79.

The industry rank for Sona Machinery's Net-Net Working Capital or its related term are showing as below:

NSE:SONAMAC's Price-to-Net-Net-Working-Capital is ranked better than
81.66% of 1358 companies
in the Industrial Products industry
Industry Median: 8.46 vs NSE:SONAMAC: 2.89

Sona Machinery Net-Net Working Capital Historical Data

The historical data trend for Sona Machinery's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sona Machinery Net-Net Working Capital Chart

Sona Machinery Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Net-Net Working Capital
-3.42 -4.16 -2.47 28.79

Sona Machinery Semi-Annual Data
Mar21 Mar22 Mar23 Mar24
Net-Net Working Capital -3.42 -4.16 -2.47 28.79

Competitive Comparison of Sona Machinery's Net-Net Working Capital

For the Specialty Industrial Machinery subindustry, Sona Machinery's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sona Machinery's Price-to-Net-Net-Working-Capital Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sona Machinery's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Sona Machinery's Price-to-Net-Net-Working-Capital falls into.


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Sona Machinery Net-Net Working Capital Calculation

Sona Machinery's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2024 is calculated as

Net-Net Working Capital(A: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(466.649+0.75 * 95.316+0.5 * 122.197-203.698
-0-0)/13.740
=28.79

Sona Machinery's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

Net-Net Working Capital(Q: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(466.649+0.75 * 95.316+0.5 * 122.197-203.698
-0-0)/13.740
=28.79

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Sona Machinery  (NSE:SONAMAC) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Sona Machinery Net-Net Working Capital Related Terms

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Sona Machinery Business Description

Traded in Other Exchanges
N/A
Address
Plot F-16 & C-1, Sector: A-3 Tronica City, Industrial Area, Loni, Ghaziabad, UP, IND, 201102
Sona Machinery Ltd is a diversified agro-processing equipment manufacturer company. It manufactures equipment for the processing of rice, pulses, wheat, spices, Barnyard Millet, etc. The company product portfolio includes Grains Pre Cleaner machines, Rotary Drum Cleaner, Vibro Classifiers, Stone Separator Machines, Paddy De-Husker, Husk Aspirator, Rice Thick/Thin Grader, Rice Whitener, Silky Polisher, Multi Grader, Length Grader, Belt Conveyer, Bucket Elevator, etc. along with the complete projects for rice mills and ethanol distilleries. Its services encompass engineering, erection, supervision, and machine commissioning, delivering a comprehensive end-to-end solution for the milling section which includes grain unloading and milling solution upto pre-masher for ethanol distilleries, etc.

Sona Machinery Headlines

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