Mehul Colours

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 Ltd falling/rising?

As of 04-Mar, Mehul Colours Ltd's stock price is at Rs 67.00, down 4.75%, and trading below all key moving averages. The stock is nearing its 52-week low and has declined 9.21% over the past month, underperforming the benchmark Sensex.

As of 04-Mar, Mehul Colours Ltd's stock price is falling, currently at Rs 67.00, which reflects a decrease of Rs 3.34 or 4.75%. This decline is evidenced by the stock's performance today, where it opened with a gap down of 4.75% and touched an intraday low of Rs 67. The stock has underperformed its sector by 1.9% and is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.<BR><BR>Additionally, the stock is close to its 52-week low, being only 2.99% away from Rs 65. Over the past month, Mehul Colours has seen a significant decline of 9.21%, while the benchmark Sensex has also decreased by 5.61%. Year-to-date, the stock has dropped by 12.99%, compared to a 7.16% decline in the Sensex. Despite a recent increase in delivery volume, which rose by 33.33% against the 5-day average, the overall market sentiment and sector performance, particularly in the Dyes & Pigments sector, which has fallen by 2.84%, contribute to the stock's downward trend.

Which are the latest news on Mehul Colours?