Shares of this multibagger auto stock jumped up to 5 percent in Wednesday’s trading session after the company to form a Joint Venture (JV) for the purpose of developing and manufacturing a patented product for Hydrogen Vessels.
With a market capitalization of Rs 1,525.51 crores, the stocks of Mercury Ev-Tech Limited opened their trading hour on Wednesday at Rs 93.40 and currently trade at Rs 86.90. The company’s scrip witnessed an intra-day high of Rs 93.42 indicating a gain of approximately 5 percent as compared to the previous close of Rs 88.98 apiece.
In a recent regulatory filing with the exchange, the company intimated that it has entered into a Memorandum of Understanding (MoU) with Hydrogen Horizons Limited (HHL), registered in the United Kingdom, and Hydrogen Horizons Israel Limited (HHIL) on 27th February 2024.
The MoU has been signed between the parties to incorporate a new entity for the purpose of developing and manufacturing a patented product of a ‘Hydrogen Vessel’ and to commercialize the Hydra Pak product. The automobile company and HHL will acquire a stake in the ratio of 60:40 in the new entity to be incorporated.
Hydrogen Horizons Limited and Hydrogen Horizons Israel Limited are engaged in the Research and Development (R&D) and patent of products and providing consultancy services for the same.
During the recent financial quarters, the company’s prime business indicators, viz, operating revenues as well as after-tax profits, faced a dip in numbers with the former decreasing from Rs 5.52 crores during Q2FY24 to Rs 4.58 crores during Q3FY24, and the latter, during the same time horizon, reducing from Rs 59 lakhs to Rs 53 lakhs.
Keeping a purview of six months, the company’s stock delivered multibagger returns of around 150 percent to its stakeholders, i.e., if someone invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.50 lakhs.
Incorporated in 1986, Mercury Ev-Tech Limited is engaged in the business of manufacturing electric vehicles in India. The company offers electric cars, electric buses, electric scooters, electric vintage cars, electric golf cars, etc for various applications, including clubs, resorts, hospitality, and many more.
Written by Amit Madnani
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