How has been the historical performance of Mehul Colours?

Mehul Colours showed positive financial performance from March 2024 to March 2025, with net sales increasing to 22.82 crore and operating profit rising to 7.78 crore, despite a decrease in earnings per share. Total assets and liabilities grew, while the operating profit margin improved to 30.19%.

Answer:<BR>The historical performance of Mehul Colours shows a positive trend in key financial metrics from March 2024 to March 2025.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, Mehul Colours reported net sales of 22.82 crore, an increase from 21.94 crore in the previous year. Total operating income also rose to 22.82 crore from 21.94 crore, while total expenditure decreased significantly from 17.96 crore to 15.93 crore. This led to a substantial increase in operating profit (PBDIT) from 4.70 crore to 7.78 crore. Profit before tax improved from 4.35 crore to 7.40 crore, resulting in profit after tax rising from 3.22 crore to 5.50 crore. The earnings per share (EPS) saw a decrease to 7.29 from 111.03, while the operating profit margin increased to 30.19% from 18.14%. Total assets grew from 13.71 crore to 18.77 crore, and total liabilities increased from 13.71 crore to 18.77 crore, with no long-term borrowings reported. The book value per share adjusted significantly to 22.62 from 398.52, reflecting changes in equity capital and reserves. Overall, the company demonstrated improved profitability and operational efficiency despite fluctuations in certain metrics.

Is Mehul Colours overvalued or undervalued?

As of December 4, 2025, Mehul Colours is considered expensive and overvalued with a PE ratio of 16.49, despite a high ROCE of 33.96%, especially when compared to peers like Sudarshan Chemicals and Ultramarine Pigments, while recently outperforming the Sensex with a 13.16% return.

As of 4 December 2025, the valuation grade for Mehul Colours has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. The PE ratio stands at 16.49, while the EV to EBITDA ratio is 10.27, and the ROCE is notably high at 33.96%. <BR><BR>In comparison to its peers, Sudarshan Chemicals is rated fair with a PE ratio of 130.12, while Ultramarine Pigments is attractive with a PE ratio of 15.7. These comparisons suggest that Mehul Colours is trading at a premium relative to some peers, despite its strong return on capital. Additionally, the stock has outperformed the Sensex over the past week, returning 13.16% compared to the Sensex's -0.53%, which may indicate short-term market optimism despite the overall valuation concerns.

Why is Mehul Colours falling/rising?

As of 20-Dec, Mehul Colours Ltd's stock price is at 76.00, unchanged from the previous day, and has fallen by 2.56% over the last two days and 5.59% over the past month, underperforming against the benchmark Sensex. The stock's consistent trading below moving averages and a significant drop in investor participation indicate a decline in confidence and interest.

As of 20-Dec, Mehul Colours Ltd's stock price is currently at 76.00, with no change from the previous day. The stock has been underperforming, having fallen by 2.56% over the last two days and is down 5.59% over the past month, while the benchmark Sensex has only decreased by 0.30% in the same period. Additionally, the stock has consistently traded below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a downward trend.<BR><BR>Investor participation has also declined significantly, with delivery volume dropping by 82.95% compared to the 5-day average, suggesting reduced interest from investors. Furthermore, the stock has not traded on 2 out of the last 20 days, contributing to its erratic trading pattern. Overall, these factors indicate that Mehul Colours Ltd is experiencing a decline in stock price due to poor performance relative to the market, decreased trading activity, and a lack of investor confidence.

Which are the latest news on Mehul Colours?