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 3, 2025, Mehul Colours is considered very expensive and overvalued, with a PE ratio of 16.78, an EV to EBITDA ratio of 10.50, and a Price to Book Value of 2.35, significantly higher than its peers, despite a recent stock performance that outpaced the Sensex.

As of 3 December 2025, the valuation grade for Mehul Colours has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios highlight this position: the PE ratio stands at 16.78, the EV to EBITDA ratio is 10.50, and the Price to Book Value is 2.35. <BR><BR>In comparison to its peers, Mehul Colours' valuation is notably higher than Sudarshan Chemicals, which is rated fair with a PE of 131.14, and Kiri Industries, which is rated risky with a PE of 29.99. This suggests that Mehul Colours is trading at a premium relative to its industry peers, further reinforcing its overvalued status. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-week return of 15.13% compared to the Sensex's -0.59%, although this does not mitigate the overall valuation concerns.

Which are the latest news on Mehul Colours?

Why is Mehul Colours falling/rising?

As of 04-Dec, Mehul Colours Ltd's stock price is at 86.00, down 1.5 (-1.71%) after a trend reversal. Despite the decline, it remains above key moving averages, indicating a positive long-term trend, while increased investor participation suggests heightened interest.

As of 04-Dec, Mehul Colours Ltd's stock price is currently at 86.00, reflecting a decrease of 1.5 (-1.71%). The stock has underperformed its sector by 0.96% today and has experienced a trend reversal, falling after two consecutive days of gains. Notably, the stock opened with a significant loss of 5.13%, reaching an intraday low of Rs 83.01. <BR><BR>Despite this decline, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive long-term trend. Additionally, there has been a notable increase in investor participation, with a delivery volume of 52.8k on December 3, which is up by 153.85% compared to the 5-day average. However, the current price drop suggests that immediate market conditions or investor sentiment may be influencing the stock's performance negatively today.