The shares of this smallcap company clocked 5 percent in Friday’s trading session after they acquired an additional 20 percent stake in its subsidiary. The shares have delivered a multibagger return of 893 percent to its shareholders on a YTD basis.
With a market capitalization 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 apiece 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.
Such a bullish movement in the price was observed after they announced the acquisition of an additional 20 percent stake i.e. 2000 equity shares of Rs.10 each in its subsidiary Powermets Energy Private Limited which is engaged in the manufacturing and trading of essential Lithium batteries component of E-Vehicles for Rs.10,60,000 and subsequently the company became a wholly owned subsidiary (WoS) of Mercury EV-Tech Ltd.
Coming to the financial statement published by the company, the revenue decreased by around 35 percent from Rs. 6.35 crores during Q1 FY24 to Rs. 4.15 crores in Q2 FY24. On a contrasting note, the net profits increased marginally by 1.35 percent from Rs. 74 lakhs to Rs. 75 lakhs during the same timeframe.
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. Furthermore, 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.
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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