Management Or Ownership Change
Expected: Since 2019HIGH confidence
What: Shareholding Acquisition: 34.51%
Sobhagya Mercantile Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +17.9%WeakRe-Entry
In , Sobhagya Mercantile Ltd (Diversified) is outperforming Nifty 500 with +17.9% relative strength. Fundamentals: Weak.
Sobhagya Mercantile Ltd Key Facts
- PE Ratio
- 36.8x
- Market Cap
- ₹882 Cr
- PAT Growth YoY
- +66%
- Revenue Growth YoY
- +5%
- OPM
- 19.1%
- RS vs Nifty 500
- +17.9%
PE: Near PeakRiding Wave
What's Happening
📊PE near cycle highs — limited room for further expansion
🏦Virtually debt-free company
💰Trading 15% above estimated fair value
Earnings Acceleration Triggers
1. Management Or Ownership Change
Since 2019HIGH
2. Operating Leverage Inflection
Q3 FY26HIGH
Key Risks
1. Minimal impact from Middle East conflict analyzed by MarketMind AI
LOW2. High debtor days and non-payment of dividends despite repeated profits
MEDIUMSector-Specific Signals
Debtor Days249 days
Promoter Holding64.62%
ROCE33.71%
Key Numbers
PAT Growth YoY
+66%
Stable
Revenue YoY
+5%
Stable
Operating Margin
19.1%
+518 bps YoY
PE Ratio
36.8
Current Price
₹904
Fundamental Score
37/100
Weak
3Y PAT CAGR
+13%
Market Cap
882 Cr
Valuation
Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Sobhagya Mercantile Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: Q3 FY26HIGH confidence
What: Operating Profit Growth: 95.49%
Impact: Margin expansion to 18.87%
What Are the Key Risks for Sobhagya Mercantile Ltd?
Earnings deceleration risks from management commentary
Minimal impact from Middle East conflict analyzed by MarketMind AI
LOWTrigger: Minimal impact from Middle East conflict analyzed by MarketMind AI.
Management view: Monitoring situation; impact currently assessed as minimal.
Monitor: geopolitical
High debtor days and non-payment of dividends despite repeated profits
MEDIUMTrigger: High debtor days and non-payment of dividends despite repeated profits.
Management view: Not Given
Monitor: regulatory
What Did Sobhagya Mercantile Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹47.47 Cr
YoY +5.14%QoQ -7.32%
Revenue grew year-on-year but saw a sequential decline of 7.32% compared to the previous quarter.
EBITDA
₹8.96 Cr
YoY +95.49%Margin 18.87%
Operating profit nearly doubled year-on-year, leading to a significant expansion in operating margins to 18.87%.
PAT
₹6.05 Cr
YoY +65.75%QoQ +28.72%
Net profit showed strong growth both annually and sequentially, reaching ₹6.05 Cr for the quarter.
Other Highlights
• Net profit margin jumped 57.65% YoY to 12.74% in Q3 FY26.
• Earnings per share (EPS) reported at 7.2 for the quarter.
• Stock touched a 52-week high of ₹920.60 following the results.
What Sector Metrics Matter for Sobhagya Mercantile Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Debtor Days
249 days
Why: High debtor days are characteristic of the infrastructure sector but represent a liquidity risk.
Promoter Holding
64.62%
QoQ -10.4%
Why: Promoter holding decreased over the last quarter by 10.4%.
ROCE
33.71%
Why: High return on capital employed reflecting efficient use of capital in infrastructure projects.
What Is Sobhagya Mercantile Ltd's Management Guidance?
Forward-looking targets from management for FY26
Capex Plan
₹1787 Cr
Revenue Outlook
₹750–800 Cr
Capex Plan
₹1,787 Cr
Convertible Warrants Issue for Infrastructure and Allied Activities
Management Tone: BULLISH
How Fast Is Sobhagya Mercantile Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +5% | +33% | Stable |
| PAT (Net Profit) | +66% | +13% | Stable |
| OPM | 19.1% | +518 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Sobhagya Mercantile Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Sobhagya Mercantile Ltd's latest quarterly results?
Sobhagya Mercantile Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +65.8% (stable)
- Revenue Growth YoY: +5.1%
- Operating Margin: 19.1% (volatile)
Is Sobhagya Mercantile Ltd's profit growing or declining?
Sobhagya Mercantile Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +65.8% (latest quarter)
- PAT Growth QoQ: +28.7% (sequential)
- 3-Year PAT CAGR: +13.3%
- Trend: Stable — consistent growth pattern
What is Sobhagya Mercantile Ltd's revenue growth trend?
Sobhagya Mercantile Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +5.1%
- Revenue Growth QoQ: -7.3% (sequential)
- 3-Year Revenue CAGR: +32.8%
How is Sobhagya Mercantile Ltd's operating margin trending?
Sobhagya Mercantile Ltd's operating margin is volatile.
- Current OPM: 19.1%
- OPM Change YoY: +5.2% basis points
- OPM Change QoQ: +5.5% basis points
What is Sobhagya Mercantile Ltd's 3-year profit and revenue CAGR?
Sobhagya Mercantile Ltd's long-term compounding rates
- 3-Year Profit CAGR: +13.3%
- 3-Year Revenue CAGR: +32.8%
Is Sobhagya Mercantile Ltd's growth accelerating or decelerating?
Sobhagya Mercantile Ltd's earnings growth is stable with improving on a sequential basis.
- YoY Acceleration: -34.2% bps
- Sequential Acceleration: +45.1% bps
What is Sobhagya Mercantile Ltd's trailing twelve month (TTM) performance?
Sobhagya Mercantile Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹24 Cr
- TTM PAT Growth: +100.0% YoY
- TTM Revenue: ₹211 Cr
- TTM Revenue Growth: +59.8% YoY
- TTM Operating Margin: 16.7%
Is Sobhagya Mercantile Ltd overvalued or undervalued?
Sobhagya Mercantile Ltd appears overvalued based on our fair value analysis.
- Valuation Signal: Overvalued
- Current PE: 36.8x
- Price-to-Book: 7.9x
What is Sobhagya Mercantile Ltd's current PE ratio?
Sobhagya Mercantile Ltd's current PE ratio is 36.8x.
- Current PE: 36.8x
- Market Cap: 882 Cr
How does Sobhagya Mercantile Ltd's valuation compare to its history?
Sobhagya Mercantile Ltd's current PE is 36.8x.
- Current PE: 36.8x
- Valuation Assessment: Overvalued
What is Sobhagya Mercantile Ltd's price-to-book ratio?
Sobhagya Mercantile Ltd's price-to-book ratio is 7.9x.
- Price-to-Book (P/B): 7.9x
- Book Value per Share: ₹115
- Current Price: ₹904
Is Sobhagya Mercantile Ltd a fundamentally strong company?
Sobhagya Mercantile Ltd is rated Weak with a fundamental score of 36.61/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +5.1% (10% weight)
- PAT Growth YoY: +65.8% (10% weight)
- PAT Growth QoQ: +28.7% (10% weight)
- Margins stable (10% weight)
Is Sobhagya Mercantile Ltd debt free?
Sobhagya Mercantile Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹7 Cr
What is Sobhagya Mercantile Ltd's return on equity (ROE) and ROCE?
Sobhagya Mercantile Ltd's return ratios over recent years
- FY2023: ROCE 44.0%
- FY2024: ROCE 34.0%
- FY2025: ROCE 34.0%
Is Sobhagya Mercantile Ltd's cash flow positive?
Sobhagya Mercantile Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-17 Cr
- CFO/PAT Ratio: -106% (weak cash conversion)
What is Sobhagya Mercantile Ltd's dividend yield?
Sobhagya Mercantile Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹904
Who holds Sobhagya Mercantile Ltd shares — promoters, FII, DII?
Sobhagya Mercantile Ltd's shareholding pattern (Mar 2026)
- Promoters: 64.6%
- FII (Foreign): 13.8%
- Public: 21.5%
Is promoter holding increasing or decreasing in Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 64.6% (Mar 2026)
- Previous Quarter: 75.0% (Dec 2025)
- Change: -10.38% (decreasing — worth monitoring)
How long has Sobhagya Mercantile Ltd been outperforming Nifty 500?
Sobhagya Mercantile Ltd has been outperforming Nifty 500 for 2 consecutive weeks, indicating early-stage outperformance.
Is Sobhagya Mercantile Ltd a new momentum entry or an established outperformer?
Sobhagya Mercantile Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd has 2 key growth catalysts identified from recent earnings analysis
- Management Or Ownership Change — New management is driving the shift from legacy trading to high-growth infrastructure and mining sectors.
- Operating Leverage Inflection — Profit growth significantly outpacing revenue growth indicates strong operating leverage as the company scales its infra business.
What are the key risks in Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd has 2 key risks worth monitoring
- [LOW] Minimal impact from Middle East conflict analyzed by MarketMind AI — Minimal impact from Middle East conflict analyzed by MarketMind AI.
- [MEDIUM] High debtor days and non-payment of dividends despite repeated profits — High debtor days and non-payment of dividends despite repeated profits.
What is Sobhagya Mercantile Ltd's management guidance for growth?
Sobhagya Mercantile Ltd's management has provided the following forward guidance for FY26
- Revenue outlook: ₹750–800 Cr
- Margin outlook: Not Given
- Capex plan: ₹1787 Cr for Convertible Warrants Issue for Infrastructure and Allied Activities
- Management tone: bullish
What sector-specific metrics matter most for Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd's most important sub-sector-specific KPIs from the latest concall
- Debtor Days: 249 days — High debtor days are characteristic of the infrastructure sector but represent a liquidity risk.
- Promoter Holding: 64.62% (QoQ -10.4%) — Promoter holding decreased over the last quarter by 10.4%.
- ROCE: 33.71% — High return on capital employed reflecting efficient use of capital in infrastructure projects.
Is Sobhagya Mercantile Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Sobhagya Mercantile Ltd may be worth studying
- Earnings growing at +65.8% YoY
What is the investment thesis for Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Management Or Ownership Change
Risk Factors (Bear Case)
- Appears overvalued
- Key risk: Minimal impact from Middle East conflict analyzed by MarketMind AI
What is the future outlook for Sobhagya Mercantile Ltd?
Sobhagya Mercantile Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Overvalued
- Key Catalyst: Management Or Ownership Change
- Key Risk: Minimal impact from Middle East conflict analyzed by MarketMind AI
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.