Sonal Mercantile Stock Price Analysis and Quick Research Report. Is Sonal Mercantile an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

To understand the functions of the Sonal Mercantile better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Sonal Mercantile is Rs 7.848564 Cr and the compounded growth of profit in the past 3 years is 58.0936561161115 %. The PAT margin of Sonal Mercantile is 29.7427662968642 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Sonal Mercantile , the EPS grew by 28.8552278171655 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Sonal Mercantile has a average ROE track record. The ROE of Sonal Mercantile is at 19.9500811023854 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Sonal Mercantile is worth at the current levels at Rs 99. The stock is trading at a current P/E ratio of 13.5994892210621 and the average historical P/E for the last 5 years was 11.5508867706924.

• P/B ratio can be one of the best metrics to value such companies. Currently, Sonal Mercantile is trading at a P/B of 2.7404 . The average historical P/B of Sonal Mercantile for the last 5 years was 1.28388630869345. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of Sonal Mercantile is Rs 99. One can use valuation calculators of ticker to know if Sonal Mercantile share price is undervalued or overvalued.