Mercantile Ports and Logistics (MPL) AI Stock Analysis

• Market Cap: £2.14M
• Dividend Yield: N/A
• Average Volume (3M): 152.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• 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: 356,312,680
• 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: 38 Underperform
• Price Target: 0.52p ▲(29.25% Upside)

Mercantile Ports and Logistics is facing significant financial and technical challenges. The financial performance is weak due to operational inefficiencies and increasing leverage. Technical analysis indicates bearish momentum with the stock being oversold. Valuation concerns are highlighted by a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

Despite financial challenges, MPL's revenue growth indicates potential for market expansion and increased demand for its logistics services.

Strategic Partnerships

These partnerships can lead to exclusive agreements and enhanced service offerings, strengthening MPL's competitive position in the logistics sector.

Equity Financing Stability

A stable equity ratio suggests a reasonable proportion of financing through equity, providing financial cushioning against rising leverage.

Negative Factors

Operational Inefficiencies

Persistent operational inefficiencies and negative margins indicate challenges in cost management and profitability, affecting long-term sustainability.

Rising Leverage

Increasing leverage poses financial risks, potentially limiting MPL's ability to invest in growth and manage economic downturns.

Cash Flow Strain

Challenges in generating cash surplus limit MPL's ability to fund operations and invest in new opportunities, impacting long-term growth potential.

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 profit margins. The balance sheet indicates rising leverage, posing financial risks, though 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.35M	5.46M	4.87M	1.80M	745.00K
Gross Profit	2.02M	3.04M	3.42M	917.00K	697.00K
EBITDA	-6.64M	-9.46M	-286.00K	1.70M	-2.37M
Net Income	-18.63M	-21.22M	-9.62M	-6.02M	-6.56M
Balance Sheet
Total Assets	111.17M	127.00M	144.27M	154.62M	154.01M
Cash, Cash Equivalents and Short-Term Investments	911.00K	3.05M	389.00K	4.57M	3.90M
Total Debt	52.29M	48.86M	43.90M	43.33M	41.21M
Total Liabilities	56.66M	53.37M	52.89M	54.40M	56.34M
Stockholders Equity	54.60M	73.69M	91.40M	100.21M	97.67M
Cash Flow
Free Cash Flow	348.00K	-2.15M	-1.52M	-7.63M	-10.83M
Operating Cash Flow	348.00K	-498.00K	-92.00K	-5.52M	-2.44M
Investing Cash Flow	577.00K	-1.62M	-1.39M	-2.09M	-8.32M
Financing Cash Flow	-2.89M	3.90M	-2.78M	8.53M	125.00K

Mercantile Ports and Logistics Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MPL, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.68, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 14.48 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
OCN	78 Outperform	£316.85M	8.07	―	11.50%	―	―
FSJ	77 Outperform	£201.86M	4.51	27.15%	―	-12.37%	―
CKN	72 Outperform	$1.07B	14.23	15.43%	2.97%	3.29%	-8.76%
RNO	70 Outperform	£164.10M	10.76	25.68%	―	1.53%	-7.99%
BMS	69 Neutral	£72.51M	12.26	4.94%	2.35%	-15.64%	-22.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MPL	38 Underperform	£2.14M	―	-56.92%	―	11.78%	-39.58%

Mercantile Ports and Logistics Corporate Events

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.

Mercantile Ports & Logistics Faces Legal Setback in Settlement Dispute

Mercantile Ports & Logistics Limited announced that the Delhi High Court has declined to provide interim relief in its petition regarding the annulment of a previously sanctioned One-Time Settlement and Swiss-Challenge process. The company had complied with all obligations and was the highest bidder in the original process, but the settlement was canceled due to lack of consent from all lenders, notably the Bank of Baroda. A new auction was launched with revised terms excluding MPL’s subsidiary, raising concerns about transparency. MPL plans to appeal the decision and possibly seek redress from the Supreme Court of India. The situation impacts MPL’s operations and raises questions about the fairness of the process, potentially affecting its industry positioning and stakeholder interests.

The most recent analyst rating on (GB:MPL) stock is a Hold with a £1.50 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 Refinancing Challenges Amid Legal Proceedings

Mercantile Ports & Logistics Limited is facing significant challenges due to ongoing negotiations with lenders to refinance its debt. Despite making a settlement offer, the process was annulled due to a higher bid from a third party, leading to legal proceedings. The uncertainty has severely impacted business operations, resulting in a 7% drop in revenue and an 80% decline in operating profit for the first half of 2025. The company has initiated legal action to protect its interests and is awaiting a court ruling. The Board remains committed to safeguarding its assets and believes in the inherent value of its London Stock Exchange listing, although financial performance has been adversely affected by the debt situation and associated costs.

The most recent analyst rating on (GB:MPL) stock is a Hold with a £1.50 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 Secures Interim Protection Amid Loan Facility Proceedings

Mercantile Ports & Logistics Limited announced that a judge has requested additional time to issue a decision regarding their application for a stay, but the company has been granted interim protection in the meantime. This development is crucial for the company as it seeks to enforce a previously granted sanction and complete its refinancing process, which could impact its operations and financial stability.

The most recent analyst rating on (GB:MPL) stock is a Hold with a £1.50 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 Refinancing Hurdles Amidst Legal Battle

Mercantile Ports & Logistics Limited is facing challenges with its refinancing efforts due to a lack of sanction from its consortium of lenders, which the company believes is unfair. A third party’s higher bid to acquire the company’s debt has further complicated the situation, prompting MPL to initiate legal proceedings against the banks involved. The company is actively using its network and legal avenues, including appointing Mr. Pavan Bakhshi as Managing Director, to protect its interests and ensure the refinancing process can proceed. An urgent court hearing has been scheduled, and MPL is seeking support through various diplomatic channels.

The most recent analyst rating on (GB:MPL) stock is a Hold with a £1.50 price target. To see the full list of analyst forecasts on Mercantile Ports and Logistics stock, see the GB:MPL Stock Forecast page.