Mercury Laboratories (BSE:538964) - Share price, News & Analysis

538964 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

538964 Stock Overview

Rewards

Trading at 38.4% below our estimate of its fair value

Risk Analysis

Does not have a meaningful market cap (₹602M)

Unstable dividend track record

Volatile share price over the past 3 months

Mercury Laboratories Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mercury Laboratories
Historical stock prices
Current Share Price	₹501.25
52 Week High	₹827.50
52 Week Low	₹440.00
Beta	0.34
1 Month Change	0.25%
3 Month Change	-15.45%
1 Year Change	-32.51%
3 Year Change	80.63%
5 Year Change	15.90%
Change since IPO	1,442.78%

Shareholder Returns

	538964	IN Pharmaceuticals	IN Market
7D	0.3%	1.5%	0.7%
1Y	-32.5%	-10.4%	10.6%

Return vs Industry: 538964 underperformed the Indian Pharmaceuticals industry which returned -10.4% over the past year.

Return vs Market: 538964 underperformed the Indian Market which returned 10.6% over the past year.

Price Volatility

Is 538964's price volatile compared to industry and market?
538964 volatility
538964 Average Weekly Movement	8.9%
Pharmaceuticals Industry Average Movement	7.0%
Market Average Movement	7.2%
10% most volatile stocks in IN Market	10.0%
10% least volatile stocks in IN Market	4.8%

Stable Share Price: 538964 is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 538964's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
1962	660	Rajendra Shah	https://www.mercurylabs.com

Mercury Laboratories Limited develops, manufactures, markets, distributes, and sells pharmaceutical drugs, medicines, and formulations for mother and child healthcare in Asia, Africa, the United States, the United Kingdom, and internationally. It offers products in various segments, such as gynec, pediatric, surgeon, and physician. The company exports its formulations, such as anti-inflammatory, antimalarial, digestive, hypoglycemic, multivitamin, CNS, pain management, gynec, CVS, cold and cough, miscellaneous, and other formulations, as well as antibiotic, antifungal, and antiviral formulations.

Mercury Laboratories Fundamentals Summary

How do Mercury Laboratories's earnings and revenue compare to its market cap?
538964 fundamental statistics
Market Cap	₹601.50m
Earnings (TTM)	₹34.17m
Revenue (TTM)	₹623.73m

17.6x

P/E Ratio

1.0x

P/S Ratio

Is 538964 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
538964 income statement (TTM)
Revenue	₹623.73m
Cost of Revenue	₹271.05m
Gross Profit	₹352.68m
Other Expenses	₹318.51m
Earnings	₹34.17m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	28.48
Gross Margin	56.54%
Net Profit Margin	5.48%
Debt/Equity Ratio	17.0%

How did 538964 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

7%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

38.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 538964 (₹501.25) is trading below our estimate of fair value (₹813.19)

Significantly Below Fair Value: 538964 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 538964 is good value based on its PE Ratio (17.6x) compared to the Indian Pharmaceuticals industry average (21.4x).

PE vs Market: 538964 is good value based on its PE Ratio (17.6x) compared to the Indian market (20.6x).

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 (1.5x) compared to the IN Pharmaceuticals industry average (2.6x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.2%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mercury Laboratories has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Mercury Laboratories performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 538964 has high quality earnings.

Growing Profit Margin: 538964's current net profit margins (5.5%) are lower than last year (6.9%).

Past Earnings Growth Analysis

Earnings Trend: 538964's earnings have grown by 18.6% 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 (-20.5%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (12.5%).

Return on Equity

High ROE: 538964's Return on Equity (8.7%) is considered low.

Financial Health

How is Mercury Laboratories's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 538964's short term assets (₹366.8M) exceed its short term liabilities (₹153.6M).

Long Term Liabilities: 538964's short term assets (₹366.8M) exceed its long term liabilities (₹101.8M).

Debt to Equity History and Analysis

Debt Level: 538964 has more cash than its total debt.

Reducing Debt: 538964's debt to equity ratio has reduced from 33.8% to 17% over the past 5 years.

Debt Coverage: 538964's debt is well covered by operating cash flow (116.3%).

Interest Coverage: 538964's interest payments on its debt are well covered by EBIT (85.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 538964's dividend (0.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.35%).

High Dividend: 538964's dividend (0.8%) is low compared to the top 25% of dividend payers in the Indian market (1.58%).

Stability and Growth of Payments

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

Growing Dividend: 538964's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7%), 538964's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (11.7%), 538964's dividend payments are thoroughly covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Pharmaceuticals & Biotech industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average board tenure

CEO

Rajendra Shah (69 yo)

no data

Tenure

₹1,755,099

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 served as its Chairman of the Board until Februa...

CEO Compensation Analysis

Compensation vs Market: Rajendra's total compensation ($USD22.66K) is below average for companies of similar size in the Indian market ($USD38.54K).

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

Board Members

Experienced Board: 538964's board of directors are considered experienced (7.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31