BSE:538964

Stock Analysis Report

Executive Summary

Mercury Laboratories Limited develops, manufactures, markets, distributes, and sells pharmaceuticals, medicinal drugs, and formulations for mother and child healthcare in Asia, Africa, the Far East, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Share Price & News

How has Mercury Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

538964

4.0%

IN Pharmaceuticals

2.4%

IN Market


1 Year Return

-38.2%

538964

-13.9%

IN Pharmaceuticals

8.0%

IN Market

Return vs Industry: 538964 underperformed the Indian Pharmaceuticals industry which returned -13.9% over the past year.

Return vs Market: 538964 underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

538964IndustryMarket
7 Day4.0%4.0%2.4%
30 Day-10.1%-2.8%2.5%
90 Day-6.3%0.7%3.6%
1 Year-37.8%-38.2%-13.1%-13.9%10.3%8.0%
3 Year-53.4%-54.0%-24.6%-26.2%22.3%16.0%
5 Yearn/a-10.2%-12.9%42.8%29.3%

Price Volatility Vs. Market

How volatile is Mercury Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mercury Laboratories undervalued compared to its fair value and its price relative to the market?

9.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 538964 (₹235) is trading above our estimate of fair value (₹204.54)

Significantly Below Fair Value: 538964 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 538964 is good value based on its PE Ratio (9.3x) compared to the Pharmaceuticals industry average (15.6x).

PE vs Market: 538964 is good value based on its PE Ratio (9.3x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 538964's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 538964 is good value based on its PB Ratio (1x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Mercury Laboratories forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 538964's forecast earnings growth (11.9% per year) is above the savings rate (7.6%).

Earnings vs Market: 538964's earnings (11.9% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: 538964's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 538964's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 538964's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 538964's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Mercury Laboratories performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 538964's earnings have declined by -5.3% per year over the past 5 years.

Accelerating Growth: 538964's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 538964 had negative earnings growth (-27.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.2%).


Return on Equity

High ROE: 538964's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: 538964's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 538964's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Mercury Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: 538964's short term assets (₹319.0M) exceeds its short term liabilities (₹169.2M)

Long Term Liabilities: 538964's short term assets (319.0M) exceeds its long term liabilities (114.1M)


Debt to Equity History and Analysis

Debt Level: 538964's debt to equity ratio (29.4%) is considered satisfactory

Reducing Debt: 538964's debt to equity ratio has reduced from 72.7% to 29.4% over the past 5 years.

Debt Coverage: 538964's debt is well covered by operating cash flow (61.4%).

Interest Coverage: 538964's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: 538964 has a high level of physical assets or inventory.

Debt Coverage by Assets: 538964's debt is covered by short term assets (assets are 3.752090x debt).


Next Steps

Dividend

What is Mercury Laboratories's current dividend yield, its reliability and sustainability?

0.64%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 538964's dividend (0.64%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 538964's dividend (0.64%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: Whilst dividend payments have been stable, 538964 has been paying a dividend for less than 10 years.

Growing Dividend: 538964 has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6%), 538964's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Mercury Laboratories's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average board tenure


CEO

Rajendra Shah (67yo)

0yrs

Tenure

₹2,181,181

Compensation

Mr. Rajendra Ramanlal Shah has been the Managing Director of Mercury Laboratories Limited since March 31, 1992 and serves as its Chief Executive Officer and Chairman of the Board. Mr. Shah has experience o ...


CEO Compensation Analysis

Compensation vs. Market: Rajendra's total compensation ($USD30.80K) is too low to compare against companies of similar size in the Indian market ($USD33.85K).

Compensation vs Earnings: Rajendra's compensation has been consistent with company performance over the past year.


Board Age and Tenure

4.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 538964's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rajendra Shah (67yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹2.18m
  • Paresh Mistry (50yo)

    Works Manager & Director

    • Tenure: 2yrs
    • Compensation: ₹17.50k
  • Kinjal Khandelwal

    Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Rajendra Shah (67yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹2.18m
  • Dilip Shah (65yo)

    Non-Executive Director

    • Tenure: 37.7yrs
    • Compensation: ₹5.00k
  • Poornima Karvat (72yo)

    Non Executive Independent Director

    • Tenure: 4.6yrs
    • Compensation: ₹18.50k
  • Bharat Mehta (66yo)

    Non Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹17.50k
  • Divyakant Zaveri (71yo)

    Non Executive Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹36.00k
  • Paresh Mistry (50yo)

    Works Manager & Director

    • Tenure: 2yrs
    • Compensation: ₹17.50k

Company Information

Mercury Laboratories Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mercury Laboratories Limited
  • Ticker: 538964
  • Exchange: BSE
  • Founded: 1962
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹284.760m
  • Shares outstanding: 1.20m
  • Website: https://www.mercurylabs.com

Number of Employees


Location

  • Mercury Laboratories Limited
  • 2/13-14, Gorwa Industrial Estate
  • Gorwa Road
  • Vadodara
  • Gujarat
  • 390016
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
538964BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2015

Biography

Mercury Laboratories Limited develops, manufactures, markets, distributes, and sells pharmaceuticals, medicinal drugs, and formulations for mother and child healthcare in Asia, Africa, the Far East, and in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:50
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.