ScoreComparison
Why is Mercantile Investments & Finance PLC ?
1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.78%
- Poor long term growth as Operating profit has grown by an annual rate of 10.35%
- The company has been able to generate a Return on Equity (avg) of 5.78% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate of 10.35%
3
The company has declared Positive results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at LKR 1,134.57 MM
- ROCE(HY) Highest at 9%
- RAW MATERIAL COST(Y) Fallen by -3.99% (YoY)
4
With ROE of 8.42%, it has a fair valuation with a 1.23 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 63504.74%, its profits have risen by 82.3% ; the PEG ratio of the company is 0.2
5
Market Beating performance in long term as well as near term
- Along with generating 63504.74% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Mercantile Investments & Finance PLC should be less than 10%
- Overall Portfolio exposure to Finance should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Mercantile Investments & Finance PLC for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Mercantile Investments & Finance PLC
-100.0%
1.47
148.74%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.49%
EBIT Growth (5y)
10.35%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
37.32%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.39%
ROE (avg)
5.78%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.23
EV to EBIT
7.79
EV to EBITDA
6.70
EV to Capital Employed
1.32
EV to Sales
1.15
PEG Ratio
0.18
Dividend Yield
0.00%
ROCE (Latest)
16.93%
ROE (Latest)
8.42%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
RSI
Bearish
Bollinger Bands
Moving Averages
Bullish (Daily)
KST
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 1,134.57 MM
ROCE(HY)
Highest at 9%
RAW MATERIAL COST(Y)
Fallen by -3.99% (YoY
NET PROFIT(9M)
Higher at LKR 965.8 MM
CASH AND EQV(HY)
Highest at LKR 7,148.84 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 75.2%
-3What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 101.84 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 0%
Here's what is working for Mercantile Investments & Finance PLC
Operating Cash Flow
Highest at LKR 1,134.57 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Cash and Eqv
Highest at LKR 7,148.84 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 75.2%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Profit
Higher at LKR 965.8 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (LKR MM)
Raw Material Cost
Fallen by -3.99% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at LKR 76.63 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Here's what is not working for Mercantile Investments & Finance PLC
Debt-Equity Ratio
Highest at 101.84 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 0%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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