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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 10 year financial track record.
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.
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

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 -17.6% , 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 with its 5 year median of 12.16%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 14.3 14.3
Operating Profit Margin -7.08 -7.08
Net Profit Margin 16.99 12.16
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 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 historical median of 1.84%, indicating the business is making better use of its shareholders capital.
Q.7 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 below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Surat Trade and Mercantile Ltd?
Surat Trade and Mercantile Ltd Cash conversion cycle is 83 days, above its historical median of 4 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.32 0.15
ROE 5.53 1.84
ROCE 4.48 2.29
Cash Conversion Cycle 83 days 4 days
Q.9 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 with the industry average of 0.03 , indicating lower debt levels in the industry.
Q.10 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

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)

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 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 68.6 13.3
Gross Profit 9.9 0.4
Operating Profit -11 0
Net Profit 12 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.32 0.51
ROE 5.53 2.03
ROCE 4.48 3.59
Cash Conversion Cycle (days) 82.5 45

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 6.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 6.9% 6.5% -14.7% -32.2%
Q.3 Valuation ratios of Surat Trade and 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 13.8 7.79 21.75
Price to Book 0.45 0.45 1.55
Price to Sales 1.41 0.37 1.87
EV to EBITDA 10.16 2.14 13.67

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