Mercury EV-Tech Limited, formerly known as Mercury Metals Limited, is a pioneer in the manufacturing of electric vehicles in India. Their diverse product portfolio includes electric scooters, cars, buses, vintage cars, golf carts, and more. Recently, their stock has been making waves in the investor community, delivering over 100% returns in just one month. Let’s delve into the factors behind this surge and assess its potential as an investment opportunity.
Daily Chart Analysis
Examining the daily chart of Mercury EV-Tech Limited reveals an impressive upswing in recent times, with the stock hitting upper circuits.
On November 1, the stock was trading at approximately 46 rupees per share. Fast forward to December 1, and the stock had surged to 96 rupees per share, delivering a staggering return of over 100% within a remarkably short timeframe.
Second Quarter Results FY 2023-24
The company’s financial performance in the second quarter of the fiscal year 2023-24 further adds to the excitement. Mercury EV-Tech reported a robust growth in net sales, reaching Rs 4.15 crore in September 2023, marking a substantial 42.3% increase from Rs 2.91 crore in September 2022. The quarterly net profit soared to Rs 0.75 crore, a remarkable 1156.38% surge from Rs 0.06 crore in the same period last year. Additionally, the EBITDA stood at Rs 1.09 crore in September 2023, witnessing an impressive growth of 1262.5% from Rs 0.08 crore in September 2022. Notably, the Earnings Per Share (EPS) for Mercury EV-Tech spiked to Rs 0.05 in September 2023, up from Rs 0.00 in September 2022.
Leveraging Established R&D Center
A significant contributor to Mercury Ev-Tech’s success is its strategic partnership with SRBH Motors Pvt Ltd, a distinguished group known for developing various commercial electric vehicles. This collaboration has led to the establishment of a state-of-the-art Research and Development Center at Mahiar, Madhya Pradesh, with an investment exceeding Rs. 20 crore. This R&D facility, now a division of Mercury Ev-Tech Limited, is poised to play a pivotal role in driving innovation within the electric vehicle sector.
Furthermore, the collaboration involves the commencement of manufacturing Cargo Containers at Mercury EV-Tech’s Vadodara-based facility. The production is expected to kick off within a month, with the initial phase targeting an annual output of 700-800 containers. This strategic move aligns with the company’s growth strategy and diversification plans.
Potential Investment Opportunity
With its strong financial performance, strategic partnerships, and expanding production capacity, Mercury EV-Tech seems poised for continued growth. The electric vehicle industry is experiencing exponential growth, and the company’s position at the forefront of this trend could translate into significant future returns for investors. However, it is crucial to conduct thorough research and consider your risk tolerance before making any investment decisions.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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