1. At a Glance – Conveyor Belts, But Stock Moves Like a Roller Coaster
Somi Conveyor Beltings Ltd is that classic Indian smallcap which does real industrial work, supplies to Coal India, UltraTech, NTPC, SAIL, exports to half the world… and yet manages to make investors question their life choices every six months.
Market cap is sitting around ₹142 Cr, current price near ₹120, down a brutal 48% over one year, even though the latest quarter just delivered ₹37.48 Cr revenue (+35.6% YoY) and ₹2.38 Cr PAT (+60.8% YoY).
Valuations?
- P/E: 26.5
- ROE: 7.44%
- ROCE: 10.4%
- Debt-to-equity: 0.19
So yes, profits are growing, debt is manageable, orders are flowing… but returns on capital still feel like a government file moving from one desk to another.
The stock screams: “Operationally improving, capital efficiency abhi pending hai.”
Curious already? Good. Let’s open the belt and see what’s inside.
2. Introduction – Not Sexy, Not Scamy, Just Industrial Reality
Somi Conveyor Beltings Ltd was incorporated in 2000, and it does exactly what its name says — manufactures rubber and steel-based industrial conveyor belts. No fintech pivot, no AI buzzwords, no “platform play”. Just belts. Big, heavy, dusty belts.
These belts are mission-critical for cement plants, thermal power stations, mining operations, sponge iron units, steel mills, and material handling systems where downtime costs lakhs per hour. If the belt snaps, the plant cries.
That’s the moat: boring but essential.
Over the years, Somi has quietly built:
- A wide product mix (heat resistant, fire resistant, oil resistant, steel cord, aramid fabric belts)
- A decent export footprint
- A repeat PSU-heavy order book
Yet the company remains a low-ROE manufacturer, stuck in working capital cycles that resemble Mumbai traffic at 6 pm.
So the real question is not “Will
they survive?”
The question is: “Can they ever earn like a quality business?”
3. Business Model – WTF Do They Even Do?
Imagine explaining Somi to a lazy investor:
“They make belts… but not the jeans type… the 2,000 mm wide monster belts that carry coal, clinker, limestone, iron ore.”
Somi manufactures:
- General Purpose Conveyor Belts
- Heat Resistant (up to 350°C – yes, lava vibes)
- Fire Resistant
- Oil Resistant
- Steel Cord Conveyor Belts
- Aramid Fabric (bullet-proof grade)
- Rubber sheets & mattings
These are sold to:
- Cement plants (UltraTech, Dalmia, JK Lakshmi)
- Power utilities (NTPC, state electricity boards)
- Mining companies (Coal India, sponge iron units)
- Steel majors (TATA, JSW, Rashmi Group)
Manufacturing happens at Jodhpur, with an installed capacity of 12 lakh meters per annum, capable of producing belts up to 2,000 mm width.
It’s a manufacturing + project order execution model, meaning:
- Orders are chunky
- Revenue is lumpy
- Working capital is king
- Cash flows can look drunk in some years
Simple business. Hard execution. Zero glamour.
4. Financials Overview – Numbers Don’t Lie, But They Do Yawn
Quarterly Performance (Q3 FY26 – Dec 2025)
(Figures in ₹ Crores)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 37.48 | 27.63 | 19.72 | 35.6% | 90.0% |
| EBITDA | 3.81 | 2.79 | 1.97 | 36.6% | 93.4% |
| PAT | 2.38 | 1.48 | 0.86 | 60.8% | 176% |
| EPS (₹) | 2.02 | 1.26 | 0.73 | 60.3% | 176% |
Now
