Check Before You Invest : Mercantile Ventures Ltd

Q: 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: Is Mercantile Ventures Ltd a good quality company?

Mercantile Ventures Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Mercantile Ventures Ltd undervalued or overvalued?

Mercantile Ventures Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 44.8, Historic Median: 37.03. Price to Book, Current: 0.83, Historic Median: 0.73. Price to Sales, Current: 6.7, Historic Median: 10.27. EV to EBITDA, Current: 84.82, Historic Median: 25.56

Q: 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

Q: 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 17.88%, indicating faster growth.

Q: 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: 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: Net Profit Margin of Mercantile Ventures Ltd?

Mercantile Ventures Ltd Net Profit Margin is 18.99% for FY-2025, is below its 5-year median of 24.64%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.2, Historic Median: 38.6. Operating Profit Margin (%), Current: 12.67, Historic Median: 14.11. Net Profit Margin (%), Current: 18.99, Historic Median: 24.64

Q: 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: 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 5-year historical median of 2.45%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Mercantile Ventures Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Mercantile Ventures Ltd undervalued or overvalued?

Mercantile Ventures Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	44.8	37.03
Price to Book	0.83	0.73
Price to Sales	6.7	10.27
EV to EBITDA	84.82	25.56

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 17.88%, 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 its 5-year median of 24.64%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.2	38.6
Operating Profit Margin (%)	12.67	14.11
Net Profit Margin (%)	18.99	24.64

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Mercantile Ventures Ltd?

Mercantile Ventures Ltd Return on capital employed is 0.8% for FY-2025, which is below its 5-year historical median of 2.45%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 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 5-year historical median of 2.03%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Mercantile Ventures Ltd?

Mercantile Ventures Ltd Cash conversion cycle is 67 days, in line with its 5-year historical median of 69 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.1	0.07
ROE (%)	2.03	2.03
ROCE (%)	0.8	2.45
Cash Conversion Cycle	67 days	69 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Mercantile Ventures Ltd?

Mercantile Ventures Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.06, 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

D: Promoter shareholding and pledge status of Mercantile Ventures Ltd?

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)

E: How does Mercantile Ventures Ltd performance compare with that of its Peers?

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 0.18%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	22.6	0.2
Gross Profit Growth (%)	-	13.2
Operating Profit Growth (%)	0	14.9
Net Profit Growth (%)	600	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.1	0.31
ROE (%)	2.03	4.3
ROCE (%)	0.8	9.42
Cash Conversion Cycle (days)	66.55	46

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 10.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10.7%	12.7%	17.9%	29.5%

Q.2 Valuation ratios of Mercantile Ventures Ltd vs historical?

The current P/E ratio of 44.8 is higher than its historical median of 37.03, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	44.8	37.03	26.13
Price to Book	0.83	0.73	2.37
Price to Sales	6.7	10.27	5.96
EV to EBITDA	84.82	25.56	11.62

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Check Before You Invest : Mercantile Ventures Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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