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Sonal MercantileNSE:SONAL 66 Net Margin % is 50.79% as of Jun. 2026, which is 9% below its 10-year median of 55.51. GuruFocus rates NSE:SONAL with a GF Score™ of 66/100 and a GF Value™ of ₹117.49 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 539 Credit Services companies, Sonal Mercantile ranks better than 89.24% on this metric.
Sonal Mercantile (NSE:SONAL) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Sonal Mercantile Net Margin % Related Terms
Sonal Mercantile Net Margin % Historical Data
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The historical data trend for Sonal Mercantile's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Sonal Mercantile's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sonal Mercantile Net Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sonal Mercantile's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sonal Mercantile's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sonal Mercantile (NSE:SONAL) has a Net Margin % of 50.79% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Sonal Mercantile and its competitors. This is near median its historical median of 55.51. Over the past decade, Sonal Mercantile's Net Margin % has ranged from 2.84 to 112.40. According to the industry distribution chart, Sonal Mercantile ranks #58 out of 539 companies in the Credit Services industry, placing it in the top 10.8%.
Is Sonal Mercantile's Net Margin % too high?
Sonal Mercantile's current Net Margin % of 50.79% is near median its 10-year median of 55.51. Over the past 10 years, this metric has ranged from a low of 2.84 to a high of 112.40. The Credit Services industry median Net Margin % is 15.53. Sonal Mercantile's value of 50.79% is 227% above this industry median. Based on the distribution chart, Sonal Mercantile ranks #58 out of 539 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Sonal Mercantile has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonal Mercantile's Net Margin % compare to ?
According to the Credit Services industry distribution chart, Sonal Mercantile ranks #58 out of 539 companies for Net Margin %. This places Sonal Mercantile in the top 11% of its industry — outperforming the majority of peers. The industry median Net Margin % is 15.53. Sonal Mercantile's value of 50.79% is 227% above this benchmark. Historically, Sonal Mercantile's own Net Margin % has ranged from 2.84 to 112.40 over the past decade. While the company's 10-year median is 55.51 vs. the industry median of 15.53, Sonal Mercantile has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Credit Services company?
The median Net Margin % among Credit Services companies is 15.53, based on 539 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonal Mercantile's current Net Margin % of 50.79% is 227% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Sonal Mercantile and its competitors. For the Credit Services industry, the median Net Margin % is 15.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonal Mercantile's current Net Margin % is 50.79%, which is near median its own 10-year median of 55.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonal Mercantile stock overvalued right now?
Based on GuruFocus' analysis, Sonal Mercantile (NSE:SONAL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹117.49, compared to a current price of ₹90.46 — trading 23% below its estimated fair value. The current Net Margin % is 50.79%, which is near median its 10-year median of 55.51 and 227% above the Credit Services industry median of 15.53. Sonal Mercantile's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Sonal Mercantile (NSE:SONAL), the current Net Margin % is 50.79% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sonal Mercantile (NSE:SONAL) Overvalued in 2026?
Based on GuruFocus' analysis, Sonal Mercantile stock appears to be undervalued.
The current stock price of ₹90.46 is trading 23% below its estimated GF Value™ of ₹117.49.
GuruFocus considers Sonal Mercantile to be Modestly Undervalued.
Key valuation signals for NSE:SONAL:
Net Margin %: 50.79% (near median its 10-year median of 55.51)
GF Value™: ₹117.49 vs. price of ₹90.46 (23% below fair value)
Industry Position: 227% above the Credit Services median (#58 of 539)
No single metric tells the full story. See the NSE:SONAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonal Mercantile Ltd is an India-based non-banking financial company. It is engaged in providing secured and unsecured loans and advances and is also involved in investing in quoted and unquoted securities in the stock and commodity markets. The company offers inter-corporate loans, personal loans, long-term and short-term loans, Trade financing, Bills Discounting, Project Appraisal, Loans against Guarantees, and Properties.
66GF Score
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