The Nifty 50 index has surpassed the 21,000 mark, reaching the level in 61 sessions since it first breached the 20,000 mark on September 11, 2023. This thousand-point rally from 20,000 to 21,000 stands as the 7th fastest rally in the major index’s history.
Many factors have contributed to this rally like the state election, RBI repo rate, ease in the geopolitical issues and many more. With the index, many shares have clicked the fortune of investors with its multibagger returns.
Listed below is one such small-cap stock that has delivered multibagger returns of 15,237 percent to its stakeholders in 2 years:
Mercury EV-Tech Ltd
With a market capitalisation of Rs. 2,073 crores, the shares of Mercury EV-Tech Ltd started Friday’s trading session on a higher note at Rs.124.23 compared to its previous close at Rs.118.37. Within a few minutes of the opening bell, the shares hit a 5 percent upper circuit at Rs. 124.23, which is also recorded as the company’s fresh 52-week high.
In December 2021, the stock price was trading at Rs 0.81 exhibiting a gain of around 15,237 percent compared to the current price. For example, if someone had invested Rs. 10,000 into the company’s stock two years ago, it would have converted to Rs 15.3 Lakhs now.
Having a look at the financial statements, in the past couple of financial years the company has been successful in reporting an increase in operating revenues and net profits.
The operating revenues magnified from Rs 1.18 crores during FY21-22 to Rs 13.42 crores during FY22-23, and, the net profits, keeping the timeframe the same, jumped up from Rs 22 lakhs to Rs 88 lakhs.
On a contrasting note, the company’s financial ratios have decreased during the last financial year due to the increase in expenses. The return on equity declined from 17.06 percent during FY21-22 to 5.43 percent during FY22-23. Furthermore, the return on capital employed(RoCE) decreased from 17.06 percent to 5.43 percent during the same period.
Earlier in April, Powermetz Energy Private Limited, the subsidiary of Mercury EV-Tech Limited received an open order worth Rs. 1,100 million for the supply of E2W batteries to one of the leading 2W EV manufacturers of India.
Moreover, on March 31st, 2022, the company acquired a 100 percent stake in Kavit Infra Projects Private Limited and it became a 100 percent wholly owned subsidiary of the company. The company’s focus shall continue to grow in High-speed models of the two-wheeler segment towards the Government’s mission of Electric Vehicles 2025 onwards.
Headquartered in Vadodara, Mercury EV-Tech Ltd was incorporated in 1986. The company manufactures Electric scooters, Electric cars, Electric buses, Electric Vintage cars, Electric Golf cars and other Electric Vehicles in India.
Written by Vaibhav V Patil
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