Introduction
In an exciting development for investors, Mercury EV-Tech Limited, a rising star in the EV sector, has announced the incorporation of a new subsidiary. This strategic move highlights the company’s ambitions to expand its business operations and solidify its market presence. Here’s everything you need to know about this multibagger stock under Rs. 100 that has delivered astonishing returns over the years.
Key Highlights:
- FIIs Investment Surge: Foreign Institutional Investors (FIIs) increased their stake to 1.72%, purchasing 30 lakh shares in November 2024.
- New Subsidiary: Mercury EV-Tech incorporated “Global Mercury Container Private Limited” to diversify its offerings.
- Record Returns: The stock provided multibagger returns of 705% in 2 years, 10,760% in 3 years, and a staggering 25,000% in 5 years.
- Q2FY25 Performance: Revenue grew 253% YoY, reaching Rs. 19.48 crore, with a net profit growth of 171% YoY.
About Mercury EV-Tech
Mercury EV-Tech Ltd is a small-cap company engaged in manufacturing electric scooters, cars, buses, vintage cars, and other EV solutions. Previously known as Mercury Metals Limited, the company has pivoted to become a significant player in India’s burgeoning EV market.
- Market Cap: Rs. 1,542 crore (as of December 2024)
- Stock Price: Rs. 88 per share (as of December 18, 2024)
- 52-Week Range: Rs. 64.32 – Rs. 139.20
Business Expansion with New Subsidiary
At the Board Meeting on December 17, 2024, Mercury EV-Tech resolved to set up a new subsidiary, Global Mercury Container Private Limited. Here are the details:
| Parameter | Details |
|---|---|
| Authorized Capital | Rs. 10,00,000 |
| Paid-Up Capital | Rs. 10,00,000 |
| Mercury’s Investment | 60% stake (60,000 shares) |
| Business Objective | Manufacturing ISO containers |
This move aligns with the company’s strategy to enhance its portfolio by entering the container manufacturing business, supporting its EV logistics and infrastructure needs.
Recent Strategic Moves
- Stake Acquisition: Mercury acquired a 70% stake in Haitek Automotive Private Limited for Rs. 3.5 million to strengthen its footprint in the West Bengal three-wheeler market.
- GEDA Approval: Received approval to market lithium-ion battery-powered e-rickshaws in Gujarat for FY 2024-25.
- Preferential Allotments:
- 1.44 crore shares to 40 investors at Rs. 75 per share.
- 4.53 crore convertible warrants issued to 19 investors.
Financial Performance
| Metric | Q2FY25 | YoY Growth (%) |
|---|---|---|
| Revenue | Rs. 19.48 crore | 253% |
| Operating Profit | Rs. 2.02 crore | 10.37% margin |
| Net Profit | Rs. 16 crore | 171% |
The company’s robust financial performance showcases its ability to adapt and thrive in the competitive EV market.
Why Investors Should Watch Mercury EV-Tech
- Impressive Growth: The stock’s meteoric rise over the years makes it a favorite among multibagger enthusiasts.
- Strategic Expansions: Diversification into container manufacturing and EV infrastructure demonstrates visionary leadership.
- FIIs Confidence: Increased foreign investments signal strong institutional belief in the company’s growth trajectory.
Risks to Consider
While the prospects look promising, investors should remain cautious about:
- High market volatility.
- Dependency on regulatory approvals for EV initiatives.
- Competition in the fast-growing EV sector.
Conclusion
Mercury EV-Tech continues to impress with its strategic initiatives, robust financials, and unwavering commitment to innovation. Its new subsidiary and growing FIIs interest make it a stock worth monitoring closely, especially for those seeking high-growth opportunities in the EV space.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Consult your financial advisor before making any investment decisions.
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