Penny stock engaged in the business of trading agriculture products and other related materials hit a 2 percent upper circuit in the day’s trade upon receiving work orders worth Rs. 51 Crores.
Price Action
With a market capitalization of Rs. 95 Crores, the shares of Mercury Trade Links Limited hit a 2 percent upper circuit in the day’s trade at Rs. 69.38 per equity share, from its previous day’s close price of Rs. 68.02.
What Happened
Mercury Trade Links Limited has entered into a strategic supply contract agreement with Rajgor Proteins Limited and Rajgor Agro Limited for the supply of multiple agricultural commodities for a consideration of Rs. 51 Crores.
As per the agreement Mercury Trade Links Limited will supply 3000 Metric Tons (MT) of Castor Seeds, 1400 Metric Tons (MT) of Chana, 1700 Metric Tons (MT) of Guar Seeds, and 3000 Metric Tons (MT) of Mustard Seeds to Rajgor Agro Limited.
The delivery of these goods is scheduled to be completed within a three-month period, it represents a significant milestone for Mercury Tradelinks Limited as it looks to strengthen its position in the competitive Indian agricultural market and expand its market presence and financial standing across key agricultural segments.
About the Company
Mercury Trade Links Limited is engaged in the business of trading, exporting, and importing agriculture products and other related materials like fertilizers, manures, plant or animal foods, insecticides, herbicides, rice, maize, milo, seeds, and many other commodities.
Financials & Ratios
Its Revenue from operations grew by 116 percent YoY from Rs. 3.99 Crores in Q2FY24 to Rs. 8.63 Crores in Q2FY25, accompanied by profits of Rs. 39 Lakhs to Rs. 76 Lakhs.
In terms of Return ratios, it has reported a return on equity (ROE) of 19.2 percent and a return on capital employed (ROCE) of 23.6 percent. It has reported a debt-to-equity ratio of 0.
Written by: Bharath K.S
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