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Shares of this Electric Vehicle manufacturing company clocked 5 percent upper circuit in Monday’s trading session after receiving approval for selling electric vehicles from ICAT. In one year, the shares have delivered a multibagger return of 492 percent to its shareholders. 

With a market capitalization of Rs. 1,474 crores, the shares of Mercury EV-Tech Ltd started Monday’s trading session on a higher note at Rs. 81.55 compared to its previous close of Rs. 79.98. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 83.97 apiece. 

Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received approval for the production and selling of an E-Rickshaw- Passenger and E-Cart-Loader from the International Center for Automotive Technology (ICAT). 

Furthermore, the company mentioned that approval received from the authority marks a significant advancement as it opens up avenues for revenue generation and expansion. Additionally, by introducing its product to consumers, the company anticipates not only meeting demand but also fostering growth and enhancing its overall business performance. 

Coming onto the company’s financial statements, the revenue decreased by 17 percent from Rs. 5.52 crores during the September quater to Rs. 4.58 crores in the December quarter. On the other hand, the net profits declined by 10 percent from Rs. 59 lakhs to Rs. 53 lakhs during the same period. 

In February, Mercury EV-Tech Limited entered into a Memorandum of Understanding (MoU) with Hydrogen Horizons Ltd (“HHL”) and Hydrogen Horizons Israel Ltd to develop and manufacture a patented product of a hydrogen vessel. 

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, the company is also setting up an in-house facility for manufacturing key components and aims to introduce a 42-seater electric bus and a 4W commercial vehicle in the upcoming years, aligning with the government’s Electric Vehicles mission for 2025 and beyond. 

The company’s financial ratios have decreased during the last financial year due to the increase in expenses. The return on equity(RoE) 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 timeframe. 

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 Patil 

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