How has been the historical performance of Mehul Colours?

Mehul Colours showed positive financial performance from March 2024 to March 2025, with net sales increasing to 22.82 crore and operating profit rising to 7.78 crore, despite a decrease in earnings per share. Total assets and liabilities grew, while the operating profit margin improved to 30.19%.

Answer:<BR>The historical performance of Mehul Colours shows a positive trend in key financial metrics from March 2024 to March 2025.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, Mehul Colours reported net sales of 22.82 crore, an increase from 21.94 crore in the previous year. Total operating income also rose to 22.82 crore from 21.94 crore, while total expenditure decreased significantly from 17.96 crore to 15.93 crore. This led to a substantial increase in operating profit (PBDIT) from 4.70 crore to 7.78 crore. Profit before tax improved from 4.35 crore to 7.40 crore, resulting in profit after tax rising from 3.22 crore to 5.50 crore. The earnings per share (EPS) saw a decrease to 7.29 from 111.03, while the operating profit margin increased to 30.19% from 18.14%. Total assets grew from 13.71 crore to 18.77 crore, and total liabilities increased from 13.71 crore to 18.77 crore, with no long-term borrowings reported. The book value per share adjusted significantly to 22.62 from 398.52, reflecting changes in equity capital and reserves. Overall, the company demonstrated improved profitability and operational efficiency despite fluctuations in certain metrics.

Which are the latest news on Mehul Colours?

Why is Mehul Colours falling/rising?

As of 03-Dec, Mehul Colours Ltd's stock price is currently at Rs 87.50, reflecting a 3.7% increase and strong recent performance with a 15.13% rise over the past week. The stock shows positive momentum, trading above key moving averages and experiencing a significant increase in investor participation.

As of 03-Dec, Mehul Colours Ltd's stock price is rising, currently at Rs 87.50, reflecting an increase of Rs 3.12 or 3.7%. The stock has shown strong performance recently, with a 15.13% increase over the past week, significantly outperforming the Sensex, which declined by 0.59% during the same period. Additionally, in the last two days, the stock has gained 19.05%, indicating a positive momentum.<BR><BR>Today, the stock opened with a substantial gain of 6.66% and reached an intraday high of Rs 90. Although it touched a low of Rs 82.51, the overall trend remains upward. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which is a positive indicator of its performance. Furthermore, there has been a notable increase in investor participation, with delivery volume rising by 900% compared to the 5-day average, suggesting heightened interest and confidence among investors.<BR><BR>Overall, the combination of strong recent gains, positive trading indicators, and increased investor participation contributes to the rising stock price of Mehul Colours Ltd.

Is Mehul Colours overvalued or undervalued?

As of December 3, 2025, Mehul Colours is considered very expensive and overvalued, with a PE ratio of 16.78, an EV to EBITDA ratio of 10.50, and a Price to Book Value of 2.35, significantly higher than its peers, despite a recent stock performance that outpaced the Sensex.

As of 3 December 2025, the valuation grade for Mehul Colours has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios highlight this position: the PE ratio stands at 16.78, the EV to EBITDA ratio is 10.50, and the Price to Book Value is 2.35. <BR><BR>In comparison to its peers, Mehul Colours' valuation is notably higher than Sudarshan Chemicals, which is rated fair with a PE of 131.14, and Kiri Industries, which is rated risky with a PE of 29.99. This suggests that Mehul Colours is trading at a premium relative to its industry peers, further reinforcing its overvalued status. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-week return of 15.13% compared to the Sensex's -0.59%, although this does not mitigate the overall valuation concerns.