BSE:538563

Stock Analysis Report

Adarsh Mercantile

Executive Summary

Adarsh Mercantile Limited trades in commodities in India.


Snowflake Analysis

Overvalued with poor track record.

Share Price & News

How has Adarsh Mercantile's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 538563 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

538563

-1.9%

IN Retail Distributors

-0.07%

IN Market


1 Year Return

n/a

538563

-25.2%

IN Retail Distributors

9.5%

IN Market

Return vs Industry: Insufficient data to determine how 538563 performed against the Indian Retail Distributors industry.

Return vs Market: Insufficient data to determine how 538563 performed against the Indian Market.


Shareholder returns

538563IndustryMarket
7 Day0%-1.9%-0.07%
30 Day0%2.0%-0.7%
90 Dayn/a-4.4%3.2%
1 Yearn/a-24.9%-25.2%11.5%9.5%
3 Yearn/a-10.5%-11.7%23.6%16.7%
5 Year32.6%32.6%-66.7%-67.0%35.4%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Adarsh Mercantile undervalued compared to its fair value and its price relative to the market?

203.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 538563 (₹5.9) is trading above our estimate of fair value (₹1.55)

Significantly Below Fair Value: 538563 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 538563 is poor value based on its PE Ratio (203.2x) compared to the Retail Distributors industry average (55.7x).

PE vs Market: 538563 is poor value based on its PE Ratio (203.2x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 538563's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 538563 is good value based on its PB Ratio (0.3x) compared to the IN Retail Distributors industry average (0.8x).


Next Steps

Future Growth

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

8.8%

Forecasted Retail 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 Adarsh Mercantile 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.


Next Steps

Past Performance

How has Adarsh Mercantile performed over the past 5 years?

35.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 538563 has a large one-off gain of ₹632.2K impacting its September 30 2019 financial results.

Growing Profit Margin: 538563's current net profit margins (1.2%) are lower than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: 538563 has become profitable over the past 5 years, growing earnings by 35.9% per year.

Accelerating Growth: 538563's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 538563 had negative earnings growth (-97.3%) over the past year, making it difficult to compare to the Retail Distributors industry average (5.8%).


Return on Equity

High ROE: 538563's Return on Equity (-1.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Adarsh Mercantile's financial position?


Financial Position Analysis

Short Term Liabilities: 538563's short term assets (₹14.8M) do not cover its short term liabilities (₹35.5M).

Long Term Liabilities: 538563's short term assets (₹14.8M) do not cover its long term liabilities (₹-1,000.0).


Debt to Equity History and Analysis

Debt Level: 538563's debt to equity ratio (43.9%) is considered high.

Reducing Debt: 538563's debt to equity ratio has increased from 17.6% to 43.9% over the past 5 years.

Debt Coverage: 538563's debt is not well covered by operating cash flow (1.4%).

Interest Coverage: 538563's interest payments on its debt are not well covered by EBIT (0.2x coverage).


Balance Sheet

Inventory Level: 538563 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 538563's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Adarsh Mercantile's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 538563's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 538563's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 538563's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 538563's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 538563's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

4.3yrs

Average board tenure


CEO

Suchita Chhawchharia (40yo)

₹120,000

Compensation

Mrs. Suchita Chhawchharia serves as the Chief Executive Officer at Adarsh Mercantile Limited and has been its Executive Director since June 24, 2013. Ms. Chhawchharia is responsible for operation and other ...


CEO Compensation Analysis

Compensation vs Market: Suchita's total compensation ($USD1.69K) is below average for companies of similar size in the Indian market ($USD50.75K).

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


Board Members

NamePositionTenureCompensationOwnership
Suchita Chhawchharia
CEO & Executive Director0yrs₹120.00kno data
Sundar Mohta
Non-Executive Independent Director4.8yrsno datano data
Aritra Basu
Non-Executive Director3.8yrsno datano data
Manish Khaitan
Non-Executive Independent Director3.8yrsno datano data

4.3yrs

Average Tenure

42yo

Average Age

Experienced Board: 538563's board of directors are considered experienced (4.3 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.


Top Shareholders

Company Information

Adarsh Mercantile Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adarsh Mercantile Limited
  • Ticker: 538563
  • Exchange: BSE
  • Founded: 1984
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: ₹21.683m
  • Shares outstanding: 3.68m
  • Website: https://www.adarshmercantile.in

Number of Employees


Location

  • Adarsh Mercantile Limited
  • 8A & 8B, Satyam Towers
  • 3, Alipore Road
  • Kolkata
  • West Bengal
  • 700027
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
538563BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2014

Biography

Adarsh Mercantile Limited trades in commodities in India. It trades in raw jute, shares, and securities; and invests in property and mutual funds. The company was founded in 1984 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/13 13:23
End of Day Share Price2019/10/16 00:00
Earnings2019/09/30
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.