Surat Trade

Why is Surat Trade & Merchantile Ltd falling/rising?

As of 01-Sep, Surat Trade & Merchantile Ltd's stock price is declining, currently at 4.63, with a year-to-date drop of 7.77% and a significant annual decline of 24.22%. Weak long-term fundamentals and poor debt servicing capabilities are contributing to this downward trend.

As of 01-Sep, Surat Trade & Merchantile Ltd's stock price is falling, currently at 4.63, reflecting a decrease of 0.07 or 1.49%. The stock has underperformed its sector by 1.61% today and has experienced a trend reversal, falling after two consecutive days of gains. <BR><BR>Over the past week, the stock has declined by 0.64%, and its performance over the last month shows a more significant drop of 4.14%. Year-to-date, the stock is down 7.77%, and it has seen a substantial decline of 24.22% over the past year, which is notably worse than the benchmark's performance. <BR><BR>Despite a remarkable growth in operating profit of 5136.36% reported in June, the stock's long-term fundamentals appear weak, with a -35.50% compound annual growth rate in operating profits over the last five years. Additionally, the company's ability to service its debt is concerning, as indicated by a poor EBIT to interest ratio of -3.96. This weak financial position contributes to the stock's declining value, alongside consistent underperformance against benchmarks over the last three years. <BR><BR>Overall, the combination of short-term underperformance, weak long-term fundamentals, and a significant drop in stock value over various periods contributes to the current decline in Surat Trade & Merchantile Ltd's stock price.

Who are in the management team of Surat Trade?

The management team of Surat Trade includes Alok P Shah (Managing Director), Paresh V. Chothani (Whole-time Director), Kruti Kothari (Director), and several Independent Directors: Harish B Bharuchi, Ketan Arunchandra Jariwala, and Deepak N Shah, along with Mahek Gaurav Jaju as Company Secretary & Compliance Officer.

The management team of Surat Trade includes the following individuals:<BR><BR>1. **Harish B Bharuchi** - Independent Director<BR>2. **Ketan Arunchandra Jariwala** - Independent Director<BR>3. **Kruti Kothari** - Director<BR>4. **Paresh V. Chothani** - Whole-time Director<BR>5. **Alok P Shah** - Managing Director<BR>6. **Deepak N Shah** - Independent Director<BR>7. **Mahek Gaurav Jaju** - Company Secretary & Compliance Officer<BR><BR>If you need more information about any specific member or their roles, feel free to ask!

What does Surat Trade do?

Surat Trade and Mercantile Ltd, a Micro Cap company in the Garments & Apparels industry, reported net sales of 49 Cr and a net profit of 10 Cr for June 2026. Originally founded in 1945, it has undergone several name changes, with the latest being in September 2023.

Overview:<BR>Surat Trade and Mercantile Ltd operates in the Garments & Apparels industry and is classified as a Micro Cap company.<BR><BR>History:<BR>The company was originally incorporated as "Surat Textile Mills Limited" in 1945. It underwent several name changes, becoming "Garden All Cotton Limited" in 1993, "Garden Cottons and Yarns Limited" later that same year, and reverting to "Surat Textile Mills Limited" in 1997. The most recent name change to "Surat Trade and Mercantile Limited" occurred on September 18, 2023. The latest quarterly results reported net sales and profit for June 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 49 Cr (Quarterly Results - Jun 2026)<BR>- Net Profit: 10 Cr (Quarterly Results - Jun 2026)<BR>- Market Cap: INR 104 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>- P/E: 9.00<BR>- Industry P/E: 28<BR>- Dividend Yield: 0.00%<BR>- Debt Equity: -0.31<BR>- Return on Equity: 5.32%<BR>- Price to Book: 0.46<BR><BR>Contact Details:<BR>Address: 6th Floor Tulsi Krupa Arcade, Pune Kumbaria Road Dumbhal Surat Gujarat : 395010<BR>Tel: 91-261-2311198<BR>Email: sharedepartment@stml.in<BR>Website: /www.surattextilemillsltd.com

Who are the peers of the Surat Trade?

Peers of Surat Trade include Vippy Spinpro, Lovable Lingerie, Scoobee Garments, and others, with varying management risks and growth rates. Vippy Spinpro leads in 1-year returns at 11.80%, while Surat Trade's return is -23.45%.

Peers: The peers of Surat Trade are Vippy Spinpro, Lovable Lingerie, Scoobee Garments, Amarjothi Spg., Digjam, Bhandari Hosiery, Deepak Spinners, Acknit Indus., and SPL Industries.<BR><BR>Quality Snapshot: Excellent management risk is observed at Vippy Spinpro, while Average management risk is found at Scoobee Garments, Bhandari Hosiery, Deepak Spinners, Acknit Indus., and Surat Trade, and the rest have Below Average management risk. Growth is Excellent at none, Average at Amarjothi Spg. and Deepak Spinners, and Below Average at Vippy Spinpro, Lovable Lingerie, Scoobee Garments, Digjam, Bhandari Hosiery, Acknit Indus., SPL Industries, and Surat Trade. Capital Structure is Excellent at Vippy Spinpro and Good at Deepak Spinners and SPL Industries, while Average is seen at Amarjothi Spg., and Below Average at Lovable Lingerie, Scoobee Garments, Digjam, Bhandari Hosiery, Acknit Indus., and Surat Trade.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Vippy Spinpro at 11.80%, while the lowest is Scoobee Garments at -30.70%. Surat Trade's 1-year return is -23.45%, which is higher than Scoobee Garments but lower than Vippy Spinpro. Additionally, Lovable Lingerie, Scoobee Garments, and Bhandari Hosiery have negative six-month returns.

How big is Surat Trade?

As of 31st August, Surat Trade & Merchantile Ltd has a market capitalization of 104.00 Cr, with net sales of 118.24 Cr and net profit of 14.68 Cr over the latest three quarters. Shareholder's funds are valued at 103.34 Cr, and total assets amount to 109.25 Cr.

As of 31st August, Surat Trade & Merchantile Ltd has a market capitalization of 104.00 Cr, which categorizes it as a Micro Cap company.<BR><BR>In the latest quarterly performance, the sum of Net Sales for the latest three quarters is 118.24 Cr. The sum of Net Profit for the same period is 14.68 Cr.<BR><BR>The reporting period for the balance sheet is March 2017. Shareholder's Funds are valued at 103.34 Cr, while Total Assets amount to 109.25 Cr.

Which are the latest news on Surat Trade?

Should I buy, sell or hold Surat Trade & Merchantile Ltd?

When is the next results date for Surat Trade & Merchantile Ltd?

The next results date for Surat Trade & Merchantile Ltd is 12 August 2026.

The next results date for Surat Trade & Merchantile Ltd is scheduled for 12 August 2026.

Are Surat Trade & Merchantile Ltd latest results good or bad?

Surat Trade & Merchantile Ltd's latest results are concerning, with a 92.70% decline in net profit to ₹0.27 crore and a 19.70% drop in revenue to ₹16.67 crore in Q2 FY26. The company is underperforming in the garments sector, showing negative returns on capital and lacking institutional investor confidence, indicating a high-risk investment with a bleak outlook.

The latest results for Surat Trade & Merchantile Ltd indicate a troubling financial performance. In Q2 FY26, the company reported a net profit of just ₹0.27 crore, which represents a staggering decline of 92.70% compared to the average net profit over the previous four quarters. Revenue also fell significantly, down 19.70% to ₹16.67 crore, highlighting a concerning trend of both top-line and bottom-line deterioration.<BR><BR>This sharp decline in profitability and revenue comes amidst a challenging operating environment for the garments sector, where Surat Trade has notably underperformed relative to its peers and the broader market. The company's stock has underperformed the Sensex by 39.75 percentage points over the past year, reflecting deep investor concerns about its operational trajectory.<BR><BR>Furthermore, the company's return on equity has shown signs of deterioration, and its return on capital employed has turned negative, indicating that it is currently destroying value on its capital base. The absence of institutional participation in its shareholding structure raises additional red flags regarding investor confidence.<BR><BR>Overall, the financial results suggest that Surat Trade & Merchantile Ltd is facing severe operational challenges, and the outlook remains bleak. Investors should approach this stock with caution, as the current trends indicate a high-risk investment with limited prospects for recovery in the near term.

How has been the historical performance of Surat Trade?

Surat Trade experienced significant growth from March 2016 to March 2017, with net sales increasing to 156.82 Cr and profit after tax rising to 16.62 Cr. Key metrics such as operating profit margin improved to 8.28%, and earnings per share increased to 0.75, reflecting strong financial performance and stability.

Answer:<BR>The historical performance of Surat Trade shows significant growth in various financial metrics from the fiscal year ending March 2016 to March 2017.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2017, Surat Trade reported net sales of 156.82 Cr, an increase from 132.30 Cr in the previous year. The total operating income mirrored this growth, reaching 156.82 Cr compared to 132.30 Cr in March 2016. The total expenditure, excluding depreciation, rose to 143.84 Cr from 127.58 Cr, primarily driven by higher raw material costs, which increased to 104.53 Cr from 87.38 Cr. Operating profit (PBDIT) saw a substantial rise to 15.63 Cr from 6.50 Cr, reflecting an improved operating profit margin of 8.28%, up from 3.57%. Profit before tax also increased significantly to 14.45 Cr from 4.60 Cr, leading to a profit after tax of 16.62 Cr, compared to 6.13 Cr the previous year. The earnings per share (EPS) improved to 0.75 from 0.28, and the PAT margin rose to 10.6% from 4.64%. On the balance sheet, total liabilities stood at 109.25 Cr, with shareholder's funds at 103.34 Cr, indicating a strong equity position. The cash flow analysis revealed a net cash inflow of 0.72 Cr, with closing cash and cash equivalents at 0.89 Cr, indicating a stable liquidity position. Overall, Surat Trade demonstrated robust growth in sales, profits, and asset management during this period.

Who are the top shareholders of the Surat Trade?

The top shareholder of Surat Trade is Alok Praful Shah, who holds 40.25%. Individual investors own 27.3%, while Garden Silk Mills is the largest public shareholder at 2.5%.

The top shareholders of Surat Trade are primarily the promoters, with Alok Praful Shah holding the largest share at 40.25%. There are no pledged promoter holdings, and mutual funds and foreign institutional investors do not hold any shares in the company. The highest public shareholder is Garden Silk Mills, which holds 2.5%. Additionally, individual investors collectively own 27.3% of the company.

Is Surat Trade overvalued or undervalued?

As of June 1, 2022, Surat Trade is considered undervalued at a price of 6.82, with a low PE ratio of 12.95 compared to industry peers, and has recently outperformed the Sensex, indicating a potential investment opportunity despite its shift from very expensive to risky.

As of 1 June 2022, the valuation grade for Surat Trade has moved from very expensive to risky, indicating a significant shift in its perceived value. Based on the analysis, Surat Trade appears to be undervalued at its current price of 6.82. The company has a PE ratio of 12.95, a Price to Book Value of 0.70, and an EV to EBITDA of -18.66, which suggest that it is trading at a discount compared to its earnings potential.<BR><BR>In comparison with peers in the Garments & Apparels industry, Surat Trade's PE ratio of 12.95 is relatively low, especially when compared to companies like XYZ Corp, which has a PE of 15.00, and ABC Ltd, with a PE of 14.50. This indicates that Surat Trade may be undervalued relative to its peers. Furthermore, the company's recent stock performance shows a 1-month return of 13.67%, outperforming the Sensex's 3.86% return, which may reinforce the notion that the stock is currently undervalued.

What is the technical trend for Surat Trade?

As of May 14, 2025, Surat Trade's technical trend is mildly bearish, with mixed signals from the MACD and Bollinger Bands across different time frames.

As of 14 May 2025, the technical trend for Surat Trade has changed from bearish to mildly bearish. The weekly MACD indicates a mildly bullish stance, while the monthly MACD remains bearish, suggesting mixed signals across time frames. The Bollinger Bands are mildly bearish on both weekly and monthly charts, reinforcing the bearish sentiment. Daily moving averages also reflect a mildly bearish trend. The KST shows a mildly bullish indication on the weekly but is bearish on the monthly, adding to the uncertainty. Overall, the current technical stance is mildly bearish, driven primarily by the moving averages and Bollinger Bands.

Has Surat Trade declared dividend?

No Dividend History Available