Share Market Update – Surat Trade Share Price Target 2025

Surat Trade Share Price Target 2025:- ​​​​​​Surat Trade & Mercantile Ltd., established in 1945 and headquartered in Surat, India, is a public company listed on the Bombay Stock Exchange under the ticker symbol 530185. Originally known as Surat Textile Mills Limited, the company has transitioned from textile manufacturing to focus on commodity trading, dealing in metals, energy, and agricultural products. As of April 2025, the company operates with a lean team of 25 employees and maintains a market capitalization of approximately ₹154 crore. Surat Trade Share Price on BOM as of 2 May 2025 is 6.94 INR.

Surat Trade Ltd: Current Market Overview

• Open: 6.90
• High: 6.94
• Low: 6.71
• Mkt cap: 153.00Cr
• P/E ratio: N/A
• Div yield: N/A
• 52-wk high: 10.45
• 52-wk low: 5.80

Surat Trade Share Price Chart

Surat Trade Share Price Target 2025 (Prediction)

Surat Trade Shareholding Pattern

• Promoters: 68.45%
• FII: 0%
• DII: 0%
• Public: 31.55%

Key Factors Affecting Surat Trade Share Price Growth

Here are five key factors influencing the growth of Surat Trade & Mercantile Ltd. (BSE: 512311) and its share price target for 2025:

1. Robust Revenue and Profit Growth
   In FY 2023–24, Surat Trade & Mercantile Ltd. achieved an operating income of ₹60.56 crore from its commodity trading business, a significant increase from ₹24.98 crore in FY 2022–23. Additionally, the company reported a higher other income of ₹19.46 crore, up from ₹9.65 crore in the previous year, primarily due to earnings from investments in mutual funds and other financial instruments.

2. Strong Quarterly Performance
   The company has demonstrated consistent growth in its quarterly results. For instance, in the quarter ended September 2024, net sales rose by 45.15% year-on-year to ₹24.11 crore, and net profit increased by 120.11% to ₹4.05 crore. Similarly, in the December 2024 quarter, net profit surged by 132.95% to ₹6.01 crore, despite a slight decline in sales.

3. Strategic Shift to Commodity Trading
   The company transitioned from its previous manufacturing operations to focus on commodity trading, involving the buying and selling of goods such as metals, energy, and agricultural products. This strategic shift, initiated in the third quarter of FY 2022–23, has opened new avenues for revenue generation.

4. Investment in Financial Instruments
   Surat Trade & Mercantile Ltd. has prudently deployed funds realized from the sale of its manufacturing assets into diversified financial instruments. This approach has contributed to increased other income, enhancing the company’s overall financial performance.

5. Positive Outlook for Commodity Markets
   The commodity markets have shown robust performance, with the CRB Index delivering positive returns. Factors such as improved consumer spending and anticipated interest rate cuts in 2024 have contributed to exceptional returns in the financial world, including commodities.

Risks and Challenges for Surat Trade Share Price

Here are five key risks and challenges that could impact the share price target of Surat Trade & Mercantile Ltd. (BSE: 512311) in 2025:

1. Stock Price Volatility and Sector Underperformance
   Despite reporting profits, the company’s stock has experienced significant volatility, hitting a new 52-week low amid broader sector declines. This underperformance may affect investor confidence and the company’s market valuation.

2. Declining Sales Despite Profit Growth
   In the quarter ending December 2024, while the company reported a 70% increase in Profit After Tax to ₹6.01 crore, net sales declined by 24.2%. Such discrepancies between profit and revenue trends could raise concerns about the sustainability of earnings.

3. Weak Long-Term Fundamental Strength
   The company has been operating at a loss, with a negative EBIT to Interest ratio of -1.94, indicating challenges in servicing its debt. Additionally, a low Return on Capital Employed (ROCE) of 3.87% suggests limited efficiency in using capital to generate profits.

4. Dependence on Non-Operational Income
   A significant portion of the company’s earnings comes from other income sources, such as investments, rather than core business operations. This reliance may pose risks if such income streams become unstable.

5. Limited Liquidity and Market Capitalization
   With a market capitalization of ₹150.35 crore as of April 2025, the company’s relatively small size may lead to limited stock liquidity, making it more susceptible to price fluctuations and investor sentiment shifts.

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