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Check Before You Invest : Mercantile Ventures Ltd

BSE: 538942 NSE: ISIN: INE689O01013
  |   Sector:  Miscellaneous   |   Industry:  Business Support

Snapshot

Q.1 Which industry/sub-sector does Mercantile Ventures Ltd belong to?
Mercantile Ventures Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.
Q.2 Is Mercantile Ventures Ltd a good quality company?
Mercantile Ventures Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Mercantile Ventures Ltd undervalued or overvalued?
Mercantile Ventures Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Mercantile Ventures Ltd a good buy now?
Mercantile Ventures Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Mercantile Ventures Ltd?
Mercantile Ventures Ltd revenue growth is 22.6% for FY-2025 , which is above its 5 year CAGR of 17.9% , indicating faster growth.
Q.2 Gross Profit margin of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.2% for FY-2025 , which is below its 5 year median of 38.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.67% for FY-2025 , which is below its 5 year median of 14.11% indicating decreasing margins.
Q.4 Net Profit Margin of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Net Profit Margin is 18.99% for FY-2025 , is below with its 5 year median of 24.64%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 9.2 38.6
Operating Profit Margin 12.67 14.11
Net Profit Margin 18.99 24.64
Q.5 Return on Asset of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Return on Asset is 1.94%, which is in line with its 5 year historical median of 1.94%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Return on equity is 2.03% for FY-2025 , which is in line with its historical median of 2.03%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Return on capital employed is 0.8% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Cash conversion cycle is 67 days, below its historical median of 69 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.1 0.07
ROE 2.03 2.03
ROCE 0.8 2.45
Cash Conversion Cycle 67 days 69 days
Q.9 Debt to Equity ratio of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.07 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Mercantile Ventures Ltd?
Mercantile Ventures Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Mercantile Ventures Ltd?
Promoters hold 72.75% of the Mercantile Ventures Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Mercantile Ventures Ltd vs industry peers?
Mercantile Ventures Ltd revenue CAGR is 17.88% , compared to the industry median CAGR of 0.2% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 36.6 28.3
Gross Profit 3.4 6.4
Operating Profit 1 5
Net Profit 7 3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.1 0.36
ROE 2.03 4.71
ROCE 0.8 10.77
Cash Conversion Cycle (days) 66.55 49

Valuation & price assessment

Q.1 Stock return of Mercantile Ventures Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 8.7% 9.2% 10.4% 0.4%
Q.3 Valuation ratios of Mercantile Ventures Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 40.72 16.66 29.41
Price to Book 0.76 0.57 2.54
Price to Sales 6.09 9.57 4.88
EV to EBITDA 77.05 16.17 11.31

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