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INVESTMENT INSIGHTS

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 10 year financial track record.
Q.3 Is Sobhagya Mercantile Ltd undervalued or overvalued?
Sobhagya Mercantile Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
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

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 93.5% , 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 below with its 5 year median of 10.05%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 15.6 15.6
Operating Profit Margin 14.24 13.52
Net Profit Margin 9.87 10.05
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 Equity (ROE) of Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd Return on equity is 24.44% for FY-2025 , which is below its historical median of 35.5%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd Return on capital employed is 33.76% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd Cash conversion cycle is 26 days, above its historical median of -7 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.22 1.53
ROE 24.44 35.5
ROCE 33.76 44.15
Cash Conversion Cycle 26 days -7 days
Q.9 Debt to Equity ratio of Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd Debt-to-Equity ratio is 0.08 , which is above with 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

Q.1 Promoter shareholding and pledge status of Sobhagya Mercantile Ltd?
Promoters hold 75.00% of the Sobhagya Mercantile Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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 Industry Median
Revenue 157.3 13.3
Gross Profit 24.5 0.4
Operating Profit 22 0
Net Profit 16 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.22 0.5
ROE 24.44 2.03
ROCE 33.76 3.6
Cash Conversion Cycle (days) 26.01 41

Valuation & price assessment

Q.1 Stock return of Sobhagya Mercantile Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 403.78% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - 403.8% 183%
Q.3 Valuation ratios of Sobhagya Mercantile 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 36.08 0.03 21.75
Price to Book 4.61 0.01 1.55
Price to Sales 4.16 0.00 1.87
EV to EBITDA 24.74 0.08 13.67

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