I have bought 1000 shares of Mercator at INR 18. I bought it because the book value is INR 27 and is available at discount rate. Also it has been a turnaround in last 4 quarter turning to black. I would like a opinion on Mercator and what should be the fair value in next 2-3 years?
Some of the cons to considered at the very initial screening are: 1. The company has delivered a poor growth of 9.36% over past five years. 2. Company has a low return on equity of -4.17% for last 3 years. 3. Contingent liabilities of Rs.564.49 Cr which is much more than market cap of 405.31 Cr.