Mercantile Ports and Logistics (MPL) AI Stock Analysis

• Market Cap: £3.08M
• Dividend Yield: N/A
• Average Volume (3M): 152.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 11.78%
• EPS Growth: -39.58%
• Country: UK
• Employees: 45
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): N/A
• Shares Outstanding: 493,132,420
• 10 Day Avg. Volume: 289,801
• 30 Day Avg. Volume: 152,460
• PEG Ratio: <0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 12.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: 0.38p ▼(-5.00% Downside)

Overall score is held back primarily by weak financial performance (ongoing losses, negative operating margins, strained free cash flow and rising leverage). Technicals are also unfavorable with the price below key longer-term moving averages and a negative MACD, while valuation is difficult to support due to a negative P/E and no provided dividend yield.

Positive Factors

Diversified revenue streams

MPL earns from multiple channels—port operations, cargo handling, warehousing and customs services—reducing reliance on any single segment. Long-term contracts with shipping lines and freight forwarders provide predictable base demand and steady revenue visibility over multiple quarters.

Strategic government partnerships

Formal partnerships and potential exclusive operational agreements with local governments support contract wins, regulatory access, and infrastructure projects. These ties can create durable competitive advantages for site development, permit access, and preferential routing of regional cargo flows.

Relatively stable equity financing

While leverage is rising, the balance sheet still shows a reasonable equity proportion. A stable equity ratio provides a buffer against volatility, sustaining capacity to fund capital expenditures or absorb shocks without immediate recapitalization, supporting longer-term operations and growth.

Negative Factors

Persistent operating losses

Ongoing negative operating and profitability margins indicate structural issues in covering operating costs. Persistent losses erode retained earnings, constrain reinvestment capacity, and require sustained operational improvement or external funding to restore profitability over the medium term.

Rising leverage

Increasing debt-to-equity raises fixed obligations and reduces financial flexibility. Higher leverage can limit the firm's ability to invest in capacity or weather downturns, raise refinancing risk, and magnify earnings volatility, especially given current negative profitability trends.

Negative free cash flow growth

Negative free cash flow growth and weak conversion from earnings point to difficulty funding operations and capex internally. Sustained cash deficits increase reliance on external financing, elevating dilution or debt risk and hindering the firm's ability to execute long-term infrastructure investments.

Mercantile Ports and Logistics Business Overview & Revenue Model

Company Description

Mercantile Ports & Logistics Limited, through its subsidiaries, develops, owns, and operates port and logistics facilities in India. The company is developing a port and logistics facility in approximately 200 acres of land with a sea frontage of 1,000 meters at Karanja Creek in the Raigad District of Maharashtra. It also provides port operation services, including cargo handling, storage, other ancillary port, and logistics services. The company was formerly known as SKIL Ports & Logistics Limited and changed its name to Mercantile Ports & Logistics Limited in November 2016. Mercantile Ports & Logistics Limited was incorporated in 2010 and is based in Saint Peter Port, Guernsey.

How the Company Makes Money

MPL generates revenue through multiple channels, primarily from port operations and logistics services. Key revenue streams include charges for cargo handling and storage, logistics management fees, and customs brokerage services. The company capitalizes on long-term contracts with shipping lines and freight forwarders, ensuring a steady flow of income. Additionally, MPL benefits from strategic partnerships with local governments and industry stakeholders, which can lead to exclusive operational agreements and enhanced service offerings. Factors contributing to its earnings include the growth of international trade, increased demand for efficient supply chain solutions, and investments in port infrastructure that expand its operational capacity.

Mercantile Ports and Logistics Financial Statement Overview

Summary

Mercantile Ports and Logistics faces significant financial challenges. The income statement shows operational inefficiencies with negative net profit margins and declining revenues. The balance sheet indicates rising leverage, increasing financial risk, although equity financing remains stable. Cash flow is strained with negative free cash flow growth, highlighting difficulties in cash generation.

Income Statement

Mercantile Ports and Logistics has faced significant challenges on the income statement front. The gross profit margin has been inconsistent, with recent figures showing a decline. Notably, the net profit margin is negative due to persistent losses. The revenue growth rate has fluctuated, and recent years have seen declining revenues. Both EBIT and EBITDA margins are negative, indicating operational inefficiencies and difficulties in covering operating expenses.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio has been increasing, indicating rising leverage which could pose financial risks. The return on equity is negative, reflecting operational losses against shareholder equity. However, the equity ratio remains relatively stable, suggesting a reasonable proportion of the company is financed by equity rather than debt. This stability offers some financial cushioning.

Cash Flow

Cash flow analysis shows some areas of concern. The free cash flow growth rate has been negative, indicating challenges in generating cash surplus. However, the operating cash flow to net income ratio suggests some improvement in cash generation relative to net losses. The free cash flow to net income ratio also highlights the difficulty in converting earnings into cash flow, partly due to the ongoing capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.23M	4.35M	5.46M	4.87M	1.80M	745.00K
Gross Profit	6.73M	2.02M	3.04M	3.42M	917.00K	697.00K
EBITDA	-6.97M	-6.64M	-9.46M	-286.00K	1.70M	-2.37M
Net Income	-24.54M	-18.63M	-21.22M	-9.62M	-6.02M	-6.56M
Balance Sheet
Total Assets	92.02M	111.17M	127.00M	144.27M	154.62M	154.01M
Cash, Cash Equivalents and Short-Term Investments	651.00K	911.00K	3.05M	389.00K	4.57M	3.90M
Total Debt	50.12M	52.29M	48.86M	43.90M	43.33M	41.21M
Total Liabilities	53.22M	56.66M	53.37M	52.89M	54.40M	56.34M
Stockholders Equity	38.93M	54.60M	73.69M	91.40M	100.21M	97.67M
Cash Flow
Free Cash Flow	1.84M	348.00K	-2.15M	-1.52M	-7.63M	-10.83M
Operating Cash Flow	969.00K	348.00K	-498.00K	-92.00K	-5.52M	-2.44M
Investing Cash Flow	1.46M	577.00K	-1.62M	-1.39M	-2.09M	-8.32M
Financing Cash Flow	-2.85M	-2.89M	3.90M	-2.78M	8.53M	125.00K

Mercantile Ports and Logistics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MPL, the sentiment is Positive. The current price of 0.4 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.48, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 79.02 is Negative, neither overbought nor oversold. The STOCH value of 57.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MPL.

Mercantile Ports and Logistics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WATR	78 Outperform	£61.98M	16.42	6.87%	―	7.16%	-11.00%
CKN	77 Outperform	£1.28B	16.99	15.43%	2.89%	3.29%	-8.76%
FSJ	73 Outperform	£191.27M	4.19	27.15%	―	-12.37%	―
BMS	64 Neutral	£72.22M	16.97	4.94%	2.25%	-15.64%	-22.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
THRU	42 Neutral	£4.25M	-0.45	-71.37%	―	-21.55%	10.59%
MPL	40 Underperform	£3.08M	-0.07	-56.92%	―	11.78%	-39.58%

Mercantile Ports and Logistics Corporate Events

Mercantile Ports & Logistics Retains Interim Legal Protection in Supreme Court Update

Mercantile Ports & Logistics has provided an update on ongoing legal proceedings involving its subsidiary Karanja Terminal & Logistics, confirming that India’s Supreme Court has declined to issue any adverse order against the company in a civil appeal challenging an interim ruling in its favour. The court has instructed the National Company Law Appellate Tribunal to hear and, if possible, conclude the appeal on 14 January 2026, while the existing interim order from 10 December 2025 remains in force, allowing MPL to maintain its current legal protections as it continues to pursue all available remedies to safeguard its interests.

The most recent analyst rating on (GB:MPL) stock is a Sell with a £0.28 price target. To see the full list of analyst forecasts on Mercantile Ports and Logistics stock, see the GB:MPL Stock Forecast page.

Mercantile Ports & Logistics Secures Interim Legal Protection for Strategic Asset

Mercantile Ports & Logistics Ltd. has secured interim legal protection to preserve its strategic asset, Karanja Terminal & Logistics Pvt. Ltd., amidst ongoing legal proceedings with Prudent ARC. The company has formally offered to redeem outstanding debt related to the asset while contesting the prior assignment of this debt. With major global stakeholder support, MPL remains confident in its legal stance and continues its efforts to safeguard shareholder value and its long-term infrastructure position.

The most recent analyst rating on (GB:MPL) stock is a Sell with a £0.28 price target. To see the full list of analyst forecasts on Mercantile Ports and Logistics stock, see the GB:MPL Stock Forecast page.

Mercantile Ports & Logistics Advances with Shareholder Approval

Mercantile Ports & Logistics Limited announced the successful passing of resolutions at its recent General Meeting, paving the way for the cancellation of Redemption Shares and the admission of Subscription Shares to trading on AIM. This development is expected to enhance the company’s financial structure and potentially improve its market positioning by increasing liquidity and shareholder value.

The most recent analyst rating on (GB:MPL) stock is a Sell with a £0.28 price target. To see the full list of analyst forecasts on Mercantile Ports and Logistics stock, see the GB:MPL Stock Forecast page.

Mercantile Ports & Logistics Announces General Meeting and Related Party Transaction

Mercantile Ports & Logistics Limited announced a general meeting to discuss a related party transaction involving Hunch Ventures, which will subscribe for new shares, maintaining the company’s financial position and shareholder structure. This transaction, deemed fair by independent directors, will result in Hunch Ventures holding a significant stake, impacting the company’s market positioning and shareholder dynamics.

The most recent analyst rating on (GB:MPL) stock is a Sell with a £0.50 price target. To see the full list of analyst forecasts on Mercantile Ports and Logistics stock, see the GB:MPL Stock Forecast page.

Mercantile Ports & Logistics Faces Debt Challenges Amid Court Ruling

Mercantile Ports & Logistics Limited announced an update on its debt situation, revealing that its appeal for interim relief was not granted by the Delhi High Court, leading to its debt being assigned to Prudent ARC Ltd. The company has made a formal offer to repay its outstanding debt and is seeking directions from the National Company Law Tribunal in Mumbai. Despite an insolvency petition being admitted for its subsidiary KTPL, the company remains in discussions to resolve its debt issues and continues to have the support of its major global stakeholders.

The most recent analyst rating on (GB:MPL) stock is a Sell with a £0.50 price target. To see the full list of analyst forecasts on Mercantile Ports and Logistics stock, see the GB:MPL Stock Forecast page.

Mercantile Ports & Logistics Faces Debt Dispute Challenges

Mercantile Ports & Logistics Limited is currently dealing with a dispute over the annulment of a previously sanctioned One-Time Settlement with its lending consortium. The Delhi High Court did not grant interim relief, leading to the assignment of the company’s debt to Prudent ARC Ltd. Despite this setback, the company has made a formal offer to repay its outstanding debt and is seeking directions from the National Company Law Tribunal in Mumbai to facilitate this repayment. The company remains committed to protecting its facility and has expressed gratitude for the support of its global stakeholders.

The most recent analyst rating on (GB:MPL) stock is a Hold with a £0.50 price target. To see the full list of analyst forecasts on Mercantile Ports and Logistics stock, see the GB:MPL Stock Forecast page.