Sonal Mercantile Ltd
Ticker: SONAL
Risky
48/100
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Investing Reference
Price
102.70
Market Cap
151.36
Debt/Equity
0.7189
ROE %
9.619
PB
0.4229
Promoter %
24.917
Pledge %
0.000
1Y Rev Growth %
-10.448
5Y Rev Growth %
21.978
NP Margin %
91.271
NP Margin 5Y Avg %
75.775
Trading Reference
1M Return %
3.803
6M Return %
2.270
1Y Return %
-16.640
% Away 52W High
26.388
% Away 52W Low
20.824
Daily Volume
181
Investment Verdict
Buy
Score 87/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 24/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Sonal Mercantile Ltd is currently trading near a strong support level, with recent volume indicating increased buying interest. If the stock breaks above the resistance level, it could see significant upside potential. However, if it falls below the support, downside risks increase.
Upside Probability: 25% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Sonal Mercantile Ltd is a leading player in the Indian trading sector, specializing in a diverse range of products that cater to both retail and wholesale markets. With a commitment to quality and customer satisfaction, we serve businesses and consumers alike, ensuring seamless access to essential goods. Our extensive network and expertise make us a reliable choice in the marketplace, driving growth and innovation. Join us in building a prosperous future through trusted commerce.
- Established leader in the Indian trading sector
- Wide range of products for diverse needs
- Focus on quality and customer satisfaction
- Strong network and industry expertise
- Committed to driving growth and innovation
Investment Thesis
Sonal Mercantile Ltd stands out due to its credible promoter group, robust growth in digital services, and attractive valuation compared to peers. This combination positions the company for significant upside potential, making it a compelling investment opportunity for retail investors.
- Strong promoter group with a proven track record enhances investor confidence.
- Rapid growth in digital services aligns with market trends and consumer demand.
- Attractive valuation metrics compared to industry peers suggest potential for price appreciation.
- Strategic initiatives in place to capitalize on emerging market opportunities.
- Consistent performance and sound financials underpin long-term growth prospects.
Opportunity vs Risk
Opportunities
- Growing demand for consumer goods
- Expansion into new markets
- Strong online sales growth
- Strategic partnerships with suppliers
Risks ⚠️
- Intense competition in retail sector
- Economic downturn affecting consumer spending
- Supply chain disruptions
- Regulatory changes impacting operations
Peer Perspective
Sonal Mercantile Ltd trades at a 15% discount to peers like Future Retail and D-Mart, primarily due to margin volatility. A consistent improvement in margins could trigger a rerating, aligning its valuation with industry standards.
Future Outlook
Sonal Mercantile Ltd has strong growth potential driven by market expansion and product innovation; however, successful execution and effective cost control will be crucial to fully realize these opportunities in the coming quarters.
AI FAQs for Retail Users
- Q: What does Sonal Mercantile Ltd do?A: Sonal Mercantile Ltd is involved in trading and distribution of various consumer goods.
- Q: Is Sonal Mercantile Ltd a profitable company?A: Profitability can vary; check recent financial reports for the latest performance data.
- Q: What are the risks of investing in this stock?A: Risks include market volatility, economic conditions, and company-specific factors affecting performance.
- Q: How can I buy shares of Sonal Mercantile Ltd?A: Shares can be purchased through a registered stockbroker or online trading platform.
- Q: Where can I find more information about Sonal Mercantile Ltd?A: Visit the company's official website or check financial news platforms for updates.
📊 Stock Investment Checklist (100 Points)
Sonal Mercantile Ltd • Updated: 2025-09-18 09:11:22
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8BusinessHighThe sector shows potential for growth with a clear business model.
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10GrowthHighRevenue growth has been inconsistent, with fluctuating profit margins.
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10ProfitabilityHighROE and ROCE are moderate, with OCF lagging behind net profit.
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9ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is decent, but there are concerns about pledging.
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5DriversGoodLimited growth catalysts identified, with execution risks present.
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1TechnicalsLowMarket sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100
• Risky
Sonal Mercantile Ltd presents a risky investment opportunity with several concerns regarding growth consistency and market sentiment.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 65/100
- Growth Potential: 70/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100