Check Before You Invest : Sobhagya Mercantile Ltd

Q: Which industry/sub-sector does Sobhagya Mercantile Ltd belong to?

Sobhagya Mercantile Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q: Is Sobhagya Mercantile Ltd a good quality company?

Sobhagya Mercantile 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 Sobhagya Mercantile Ltd undervalued or overvalued?

Sobhagya Mercantile 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: 36.82, Historic Median: 0.03. Price to Book, Current: 4.71, Historic Median: 0.01. Price to Sales, Current: 4.25, Historic Median: -. EV to EBITDA, Current: 25.25, Historic Median: 0.41

Q: Is Sobhagya Mercantile Ltd a good buy now?

Sobhagya Mercantile 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 Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd revenue growth is 36.5% for FY-2025, which is below its 5-year CAGR of 93.49%, indicating slower growth.

Q: Gross Profit margin of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.6% for FY-2025, which is in line with its 5-year median of 15.6%, indicating stable margins.

Q: Operating Profit Margin of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.24% for FY-2025, which is above its 5-year median of 13.52% indicating increasing margins.

Q: Net Profit Margin of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Net Profit Margin is 9.87% for FY-2025, is in line with its 5-year median of 10.05%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 15.6, Historic Median: 15.6. Operating Profit Margin (%), Current: 14.24, Historic Median: 13.52. Net Profit Margin (%), Current: 9.87, Historic Median: 10.05

Q: Return on Asset of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Return on Asset is 12.08%, which is below its 5-year historical median of 15.36%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Return on capital employed is 33.76% for FY-2025, which is below its 5-year historical median of 44.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Sobhagya Mercantile Ltd

BSE: 512014 NSE: ISIN: INE754D01018

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Sobhagya Mercantile Ltd belong to?

Sobhagya Mercantile Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Sobhagya Mercantile Ltd a good quality company?

Sobhagya Mercantile 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 Sobhagya Mercantile Ltd undervalued or overvalued?

Sobhagya Mercantile 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	36.82	0.03
Price to Book	4.71	0.01
Price to Sales	4.25	-
EV to EBITDA	25.25	0.41

Q.4 Is Sobhagya Mercantile Ltd a good buy now?

Sobhagya Mercantile 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 Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd revenue growth is 36.5% for FY-2025, which is below its 5-year CAGR of 93.49%, indicating slower growth.

Q.2 Gross Profit margin of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.6% for FY-2025, which is in line with its 5-year median of 15.6%, indicating stable margins.

Q.3 Operating Profit Margin of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.24% for FY-2025, which is above its 5-year median of 13.52% indicating increasing margins.

Q.4 Net Profit Margin of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Net Profit Margin is 9.87% for FY-2025, is in line with its 5-year median of 10.05%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	15.6	15.6
Operating Profit Margin (%)	14.24	13.52
Net Profit Margin (%)	9.87	10.05

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Return on Asset is 12.08%, which is below its 5-year historical median of 15.36%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Return on capital employed is 33.76% for FY-2025, which is below its 5-year historical median of 44.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Return on equity is 24.44% for FY-2025, which is below its 5-year historical median of 35.5%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Cash conversion cycle is 26 days, above its 5-year historical median of -7 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.22	1.53
ROE (%)	24.44	35.5
ROCE (%)	33.76	44.15
Cash Conversion Cycle	26 days	-7 days

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

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

Sobhagya Mercantile Ltd Debt-to-Equity ratio is 0.08, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sobhagya Mercantile Ltd?

Sobhagya Mercantile Ltd Debt to cash flow from operations is -0.38, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Sobhagya Mercantile Ltd?

Promoters hold 64.62% of the Sobhagya Mercantile Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Sobhagya Mercantile Ltd vs industry peers?

Sobhagya Mercantile Ltd revenue CAGR is 93.49%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	36.5	-
Gross Profit Growth (%)	50	17.9
Operating Profit Growth (%)	69.2	16.4
Net Profit Growth (%)	33.3	17.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.22	0.52
ROE (%)	24.44	2.05
ROCE (%)	33.76	3.6
Cash Conversion Cycle (days)	26.01	46

Valuation & price assessment

Q.1 Stock return of Sobhagya Mercantile Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 289.41% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	289.4%	409.9%	133%

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

The current P/E ratio of 36.82 is higher than its historical median of 0.03, 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	36.82	0.03	33.62
Price to Book	4.71	0.01	1.57
Price to Sales	4.25	-	2.21
EV to EBITDA	25.25	0.41	14.09

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Check Before You Invest : Sobhagya Mercantile Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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