Why is Mercury Laboratories Ltd ?
1
Weak Long Term Fundamental Strength with a -6.00% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 9.37% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- PBDIT(Q) Lowest at Rs 2.03 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at 9.93%
- PBT LESS OI(Q) Lowest at Rs 1.07 cr.
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.66% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Mercury Labs for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Mercury Labs
-1.66%
-0.03
51.46%
Sensex
-7.92%
-0.61
13.09%
Quality key factors
Factor
Value
Sales Growth (5y)
2.06%
EBIT Growth (5y)
-6.00%
EBIT to Interest (avg)
5.30
Debt to EBITDA (avg)
0.75
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
1.33
Tax Ratio
27.11%
Dividend Payout Ratio
7.43%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.60%
ROE (avg)
9.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
33
Price to Book Value
1.66
EV to EBIT
17.56
EV to EBITDA
10.93
EV to Capital Employed
1.64
EV to Sales
1.30
PEG Ratio
0.30
Dividend Yield
0.43%
ROCE (Latest)
9.33%
ROE (Latest)
8.80%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
Technical Movement
4What is working for the Company
PAT(9M)
Higher at Rs 4.14 Cr
-3What is not working for the Company
PBDIT(Q)
Lowest at Rs 2.03 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 9.93%
PBT LESS OI(Q)
Lowest at Rs 1.07 cr.
Loading Valuation Snapshot...
Here's what is working for Mercury Labs
Profit After Tax (PAT) - Nine Monthly
At Rs 4.14 cr has Grown at 47.95%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit After Tax (PAT) - Nine Monthly
Higher at Rs 4.14 Cr
than preceding 12 month period ended Mar 2026 of Rs 3.77 crMOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
PAT (Rs Cr)
Here's what is not working for Mercury Labs
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 2.03 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 9.93%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 1.07 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)






