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Check Before You Invest : Mercury Laboratories Ltd

BSE: 538964 NSE: ISIN: INE947G01011
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Mercury Laboratories Ltd belong to?
Mercury Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Mercury Laboratories Ltd a good quality company?
Mercury Laboratories Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Mercury Laboratories Ltd undervalued or overvalued?
Mercury Laboratories Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Mercury Laboratories Ltd a good buy now?
Mercury Laboratories 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 Mercury Laboratories Ltd?
Mercury Laboratories Ltd revenue growth is -0.6% for FY-2025 , which is below its 5 year CAGR of 5.6% , indicating slower growth.
Q.2 Gross Profit margin of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 10% for FY-2025 , which is below its 5 year median of 12.9% , indicating decreasing margins.
Q.3 Operating Profit Margin of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.34% for FY-2025 , which is below its 5 year median of 11.95% indicating decreasing margins.
Q.4 Net Profit Margin of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Net Profit Margin is 4.19% for FY-2025 , is below with its 5 year median of 7.41%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 10 12.9
Operating Profit Margin 9.34 11.95
Net Profit Margin 4.19 7.41
Q.5 Return on Asset of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Return on Asset is 4.42%, which is below its 5 year historical median of 8.56%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Return on equity is 6.02% for FY-2025 , which is below its historical median of 11.72%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Return on capital employed is 9.14% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Cash conversion cycle is 102 days, above its historical median of 87 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.06 1.13
ROE 6.02 11.72
ROCE 9.14 13.61
Cash Conversion Cycle 102 days 87 days
Q.9 Debt to Equity ratio of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Debt-to-Equity ratio is 0.08 , which is lower with the industry average of 0.15 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Mercury Laboratories Ltd?
Mercury Laboratories Ltd Debt to cash flow from operations is 1.02 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Mercury Laboratories Ltd?
Promoters hold 73.66% of the Mercury Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Mercury Laboratories Ltd vs industry peers?
Mercury Laboratories Ltd revenue CAGR is 5.57% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 75.1 137.1
Gross Profit 7.5 15.1
Operating Profit 7 16
Net Profit 3.1 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.06 0.8
ROE 6.02 8.91
ROCE 9.14 11.59
Cash Conversion Cycle (days) 102.07 76

Valuation & price assessment

Q.1 Stock return of Mercury Laboratories Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 5.8% 5.1% 3.5% -10%
Q.3 Valuation ratios of Mercury Laboratories 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 19.23 14.19 40.28
Price to Book 1.6 2.10 2.77
Price to Sales 1.19 1.13 2.65
EV to EBITDA 8.74 7.49 15.67

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