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Sonal MercantileBOM:538943 +5.00%69 Pretax Margin % is 55.46% as of Mar. 2026, which is 55% above its 10-year median of 35.76. GuruFocus rates BOM:538943 with a GF Score™ of 69/100 and a GF Value™ of ₹111.63 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 535 Credit Services companies, Sonal Mercantile ranks better than 71.59% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Sonal Mercantile Pretax Margin % Related Terms
Sonal Mercantile Pretax Margin % Historical Data
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The historical data trend for Sonal Mercantile's Pretax 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.
BOM:538943 vs V, MA, AXP: Pretax Margin % Comparison
For the Credit Services subindustry, Sonal Mercantile's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sonal Mercantile's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Sonal Mercantile's Pretax 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 (BOM:538943) has a Pretax Margin % of 55.46% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sonal Mercantile and its competitors. This is 55% above median its historical median of 35.76. Over the past decade, Sonal Mercantile's Pretax Margin % has ranged from 4.48 to 39.85. According to the industry distribution chart, Sonal Mercantile ranks #152 out of 535 companies in the Credit Services industry, placing it in the top 28.4%.
Is Sonal Mercantile's Pretax Margin % too high?
Sonal Mercantile's current Pretax Margin % of 55.46% is 55% above median its 10-year median of 35.76. Over the past 10 years, this metric has ranged from a low of 4.48 to a high of 39.85. The Credit Services industry median Pretax Margin % is 20.19. Sonal Mercantile's value of 55.46% is 174.7% above this industry median. Based on the distribution chart, Sonal Mercantile ranks #152 out of 535 companies in the Credit Services industry, which is above the industry midpoint. Overall, Sonal Mercantile has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonal Mercantile's Pretax Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Sonal Mercantile ranks #152 out of 535 companies for Pretax Margin %. This puts Sonal Mercantile in the upper half of its industry. The industry median Pretax Margin % is 20.19. Sonal Mercantile's value of 55.46% is 174.7% above this benchmark. Historically, Sonal Mercantile's own Pretax Margin % has ranged from 4.48 to 39.85 over the past decade. While the company's 10-year median is 35.76 vs. the industry median of 20.19, 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 Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 20.19, based on 535 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonal Mercantile's current Pretax Margin % of 55.46% is 174.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sonal Mercantile and its competitors. For the Credit Services industry, the median Pretax Margin % is 20.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonal Mercantile's current Pretax Margin % is 55.46%, which is 55% above median its own 10-year median of 35.76. 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 (BOM:538943) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹111.63, compared to a current price of ₹96.82 — trading 13.3% below its estimated fair value. The current Pretax Margin % is 55.46%, which is 55% above median its 10-year median of 35.76 and 174.7% above the Credit Services industry median of 20.19. Sonal Mercantile's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Sonal Mercantile (BOM:538943), the current Pretax Margin % is 55.46% as of Mar. 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 (BOM:538943) Overvalued in 2026?
Based on GuruFocus' analysis, Sonal Mercantile stock appears to be undervalued.
The current stock price of ₹96.82 is trading 13.3% below its estimated GF Value™ of ₹111.63.
GuruFocus considers Sonal Mercantile to be Modestly Undervalued.
Key valuation signals for BOM:538943:
Pretax Margin %: 55.46% (55% above median its 10-year median of 35.76)
GF Value™: ₹111.63 vs. price of ₹96.82 (13.3% below fair value)
Industry Position: 174.7% above the Credit Services median (#152 of 535)
No single metric tells the full story. See the BOM:538943 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.
69GF Score
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