Check Before You Invest : Surat Trade and Mercantile Ltd

Q: Which industry/sub-sector does Surat Trade and Mercantile Ltd belong to?

Surat Trade and Mercantile Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q: Is Surat Trade and Mercantile Ltd a good quality company?

Surat Trade and 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 Surat Trade and Mercantile Ltd undervalued or overvalued?

Surat Trade and Mercantile Ltd appears Fair, as its key valuation ratios are in line with 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: 14.52, Historic Median: 21.74. Price to Book, Current: 0.47, Historic Median: 1.00. Price to Sales, Current: 1.48, Historic Median: 3.29. EV to EBITDA, Current: 10.7, Historic Median: 14.76

Q: Is Surat Trade and Mercantile Ltd a good buy now?

Surat Trade and 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 Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd revenue growth is 13.3% for FY-2025, which is above its 5-year CAGR of -17.56%, indicating faster growth.

Q: Gross Profit margin of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.3% for FY-2025, which is in line with its 5-year median of 14.3%, indicating stable margins.

Q: Operating Profit Margin of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -7.08% for FY-2025, which is in line with its 5-year median of -7.08% indicating stable margins.

Q: Net Profit Margin of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Net Profit Margin is 16.99% for FY-2025, is above its 5-year median of 12.16%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 14.3, Historic Median: 14.3. Operating Profit Margin (%), Current: -7.08, Historic Median: -7.08. Net Profit Margin (%), Current: 16.99, Historic Median: 12.16

Q: Return on Asset of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Return on Asset is 5.39%, which is above its 5-year historical median of 1.79%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Return on capital employed is 4.48% for FY-2025, which is above its 5-year historical median of 2.29%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Surat Trade and Mercantile Ltd

BSE: 530185 NSE: ISIN: INE936A01025

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Surat Trade and Mercantile Ltd belong to?

Surat Trade and Mercantile Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Surat Trade and Mercantile Ltd a good quality company?

Surat Trade and 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 Surat Trade and Mercantile Ltd undervalued or overvalued?

Surat Trade and Mercantile Ltd appears Fair, as its key valuation ratios are in line with 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	14.52	21.74
Price to Book	0.47	1.00
Price to Sales	1.48	3.29
EV to EBITDA	10.7	14.76

Q.4 Is Surat Trade and Mercantile Ltd a good buy now?

Surat Trade and 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 Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd revenue growth is 13.3% for FY-2025, which is above its 5-year CAGR of -17.56%, indicating faster growth.

Q.2 Gross Profit margin of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.3% for FY-2025, which is in line with its 5-year median of 14.3%, indicating stable margins.

Q.3 Operating Profit Margin of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -7.08% for FY-2025, which is in line with its 5-year median of -7.08% indicating stable margins.

Q.4 Net Profit Margin of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Net Profit Margin is 16.99% for FY-2025, is above its 5-year median of 12.16%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	14.3	14.3
Operating Profit Margin (%)	-7.08	-7.08
Net Profit Margin (%)	16.99	12.16

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Return on Asset is 5.39%, which is above its 5-year historical median of 1.79%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Return on capital employed is 4.48% for FY-2025, which is above its 5-year historical median of 2.29%. 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 Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Return on equity is 5.53% for FY-2025, which is above its 5-year historical median of 1.84%, indicating the business is making better use of its shareholders capital.

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

Q.8 Debt to Equity ratio of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Surat Trade and Mercantile Ltd?

Surat Trade and Mercantile Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Surat Trade and Mercantile Ltd?

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

Promoters hold 68.45% of the Surat Trade and Mercantile Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Surat Trade and Mercantile Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Surat Trade and Mercantile Ltd vs industry peers?

Surat Trade and Mercantile Ltd revenue CAGR is -17.56%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	13.3	-
Gross Profit Growth (%)	-28.6	17.9
Operating Profit Growth (%)	0	16.4
Net Profit Growth (%)	33.3	17.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.32	0.52
ROE (%)	5.53	2.05
ROCE (%)	4.48	3.6
Cash Conversion Cycle (days)	82.5	46

Valuation & price assessment

Q.1 Stock return of Surat Trade and Mercantile Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 7.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	7.3%	1.7%	-13.7%	-21.6%

Q.2 Valuation ratios of Surat Trade and Mercantile Ltd vs historical?

The current P/E ratio of 14.52 is lower than its historical median of 21.74, indicating that the stock is trading below 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	14.52	21.74	33.62
Price to Book	0.47	1.00	1.57
Price to Sales	1.48	3.29	2.21
EV to EBITDA	10.7	14.76	14.09

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Check Before You Invest : Surat Trade and Mercantile Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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