Mercury Trade Li (512415)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 153.56% shows strong recent topline momentum.
• Latest quarter sales of ₹26 Cr against a ₹31 Cr market cap means revenue scale is not insignificant relative to valuation.
• Positive ROCE of 5.96% suggests some operating-level capital efficiency despite net losses.
• Small market cap offers potential for outsized absolute returns if a genuine turnaround takes hold.

Concerns

• Latest quarter net loss of ₹5 Cr and ROE of -44.16% reflect a business destroying shareholder equity.
• P/E is meaningless due to losses, while P/B of 2.28 means paying a hefty premium over book value of ₹9.88.
• Piotroski F-Score of 4/9 and profit growth of -968.97% indicate poor financial health and deteriorating profitability.
• Debt/Equity and promoter holding are not available, creating a serious transparency gap for a fundamental investor.

AI Analysis

At ₹22.57, Mercury Trade Li is a micro-cap with a market capitalisation of just ₹31 Cr. The most important fact is that the company is losing money: the latest quarter shows sales of ₹26 Cr and a net loss of ₹5 Cr, while return on equity is a deeply negative -44.16%. A P/E of 0.00 is not a bargain; it is the market's way of saying there are no earnings to value. With book value at ₹9.88 and the price at ₹22.57, I am being asked to pay 2.28 times book for a business that is destroying equity. Graham would say there is no margin of safety here. Revenue grew 153.56%, which sounds exciting, but profit growth was -968.97%; that is the classic pattern of growth without substance. ROCE at 5.96% at least suggests the underlying assets are generating some operating return, but the net loss means the cost structure or other charges are consuming the business. The Piotroski score of 4/9 is weak, and I cannot even see debt/equity or promoter holding, so the transparency is insufficient for a fundamental investor. The stock has travelled from ₹4.17 to ₹22.57 in its 52-week range and now sits at the high. That movement appears to be driven by hope of a turnaround rather than by delivered profits. In my style, I prefer to wait until the company demonstrates consistent profitable sales. If management can convert 153.56% topline growth into positive bottom-line, this micro-cap could become interesting, but until then, a negative ROE, a loss-making quarter, and an empty dividend yield make this a speculative bet, not an investment. I would keep it on the watchlist, not in the portfolio.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer