The small-cap EV stock touched a 5% upper circuit following its board’s approval to acquire a 70% stake in Haitek Automotive Private Limited, making it a subsidiary of the company post acquisition.
Share price variations:
With a market capitalization of ₹2,327.76 crores, Mercury Ev-Tech Ltd opened the trading session at ₹129.80 per share, 2.77% higher than the previous day’s close of ₹126.29. The stock later surged to the upper circuit limit of 5%, reaching ₹132.60.
Reason for Rise:
According to exchange filings, the Board of Directors of Mercury Ev-Tech Ltd approved the acquisition of a 70% stake in Haitek Automotive Private Limited during its meeting on September 30. Haitek is engaged in manufacturing e-rickshaws, running shoes, and electric bikes. The total consideration for the acquisition is ₹35 lakhs, comprising 3.5 lakh equity shares priced at ₹10 each.
Recent Updates:
In August, the company received approval from the Gujarat Energy Development Agency (GEDA) to market and distribute battery-operated three-wheelers (e-rickshaws) equipped with lithium-ion batteries in Gujarat for the fiscal year 2024-25. Additionally, GEDA has officially approved L5 and L3 category three-wheelers to receive a subsidy of ₹48,000 per vehicle for sales within the state. In July, the company also obtained a licence to manufacture a two-wheeler EV named Mercury DLX.
Financial Performance:
For Q1FY25 the company reported a net profit decrease of 47.29% to Rs. 0.39 crores compared to net profit of Rs. 0.74 crores in Q1FY24, while revenue from operations also marked a decrease by 59.37% to Rs. 2.58 crores from Rs. 6.35 crores in comparison to the same period.
The stock has delivered nearly 58% return over the past six months and a multibagger return of 169% in the past year.
About the company:
Incorporated in 1986, Mercury Ev-Tech Ltd is in the business of Manufacturing and Trading of Electronic vehicles in India. The company develops custom electric vehicles for a wide range of applications for the hospitality, industry, golf courses, Club and Resorts etc.
Written By: Joseph Pv
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