Merritronix Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Merritronix Ltd trades at ₹399, in a confirmed uptrend and 13 weeks into that stage. That is +21.4% against its own 200-day average. It sits at 60% of a 52-week range of ₹315 to ₹456. On relative strength it has no relative-strength read yet.

Today the stock is in a confirmed uptrend — week 13 of stage 2, confirmed. At ₹399 it trades +21.4% versus its 200-day average and sits at 60% of its 52-week range (₹315–₹456).

Against the market, two honest reads. Cumulative: over the last 2 months the stock moved −12% while the NIFTY 500 moved −1% — behind the index over the full window. Recent form: no trailing-13-week read yet — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Merritronix Ltd trades at 43.4× P/E, about the priciest it has ever traded. Its long-run median P/E is 28.5×, measured across 0.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 43.4× is about the priciest it has ever traded, against a long-run median of 28.5× measured over 0.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Merritronix Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 4 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Merritronix Ltd reported ₹56.0 Cr of revenue in the Sep 25 quarter. Over 4 years it has compounded at 76.7% a year. The last full year, FY26, came in at ₹156 Cr.

FY26 revenue came in at ₹156 Cr (+36.8% on the year), capping 4 years at 76.7% compound. The latest quarter (Sep 25) printed ₹56.0 Cr, null year on year.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Merritronix Ltd's operating margin is 15.0% in the Sep 25 quarter. That is the widest this company has ever printed on a full-year basis. Across 5 fiscal years the operating margin has ranged 3.6% to 17.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 15.0%, null pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 3.6%–17.0%, and FY26's 17.0% is the top of that band — a record year.

Why: the numbers show the operating margin move clearly, but the cost lines behind it sit below what we hold — so we state the move without inventing its driver.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Merritronix Ltd earned ₹4.0 Cr of net profit in the Sep 25 quarter. Full-year FY26 profit was ₹16.0 Cr. That is 7.1% of the quarter's revenue.

Sep 25 profit was ₹4.0 Cr, null year on year. On the full year, FY26 printed ₹16.0 Cr (+77.8%).

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −89% of Merritronix Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹−23.0 Cr of operating cash against ₹16.0 Cr of profit. After ₹2.0 Cr of capital spending, ₹−25.0 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY26: operating cash of ₹−23.0 Cr against reported profit of ₹16.0 Cr, leaving free cash of ₹−25.0 Cr after ₹2.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −89% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −89%: the cash cycle tightened 16 days between FY22 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Merritronix Ltd's cash conversion cycle runs 226 days in FY26, down from 242 days in FY22. Capital spending ran ₹1.0 Cr over the last 3 years. At FY26 sales of ₹156 Cr each day of that cycle holds about ₹0.4 Cr, so roughly ₹97.0 Cr sits inside the business at any moment.

FY26: debtors at 86 days, inventory at 213 days — roughly 7.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 226 days, tighter than FY22's 242.

The full loop: cash goes out to suppliers and production on day 0; stock waits 213 days to sell; customers pay about 86 days after that; and suppliers themselves are paid at 73 days — netting out to the 226-day cycle.

In money terms: at FY26 sales of ₹156 Cr, each day of the cycle holds about ₹0.4 Cr — so the 226-day loop keeps roughly ₹97.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1.0 Cr over the last 3 fiscal years. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Merritronix Ltd earns a ROCE of 41% in FY26. That is up from a trough of 10% in FY23. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 10.3% net margin on 1.01× asset turns.

FY26 ROCE is 41%, recovered from a FY23 trough of 10% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 10.3% net margin × 1.01× asset turns × 2.91× balance-sheet leverage ≈ 30.3% on equity. Margin does its share; leverage is a meaningful part of the equation.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Merritronix Ltd carries ₹43.0 Cr of borrowings against ₹53.0 Cr of equity in FY26, a debt-to-equity of 0.81. Operating profit covers the interest bill 7×. Over 4 years borrowings went from ₹9.0 Cr to ₹43.0 Cr. Capital spending ran ₹1.0 Cr across the last 3 of those years.

FY26: borrowings of ₹43.0 Cr against equity of ₹53.0 Cr — a debt-to-equity of 0.81. Operating profit covers the interest bill 7×. Over 4 years borrowings went from ₹9.0 Cr to ₹43.0 Cr while capital spending ran ₹1.0 Cr in just the last 3 — part of the build-out is riding on borrowed money.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Merritronix Ltd moved a full percentage point over the last two years — the register is quiet. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — .

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Merritronix Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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