28,443% Returns In 5 Years: Multibagger EV Stock Reports Double-Digit Growth In Q2

Mercury EV-Tech Ltd., an established manufacturer in electric vehicle (EV) markets, has achieved so much in development mobility and building strong financial muscles up to date through weaponization.

The company has declared double-digit growth in the quarter ended 30th September 2024. Mercury EV-Tech's net profit increased 171.19% to Rs 1.60 crore in the September 2024 quarter from Rs 0.59 crore in the September 2023 quarter. Compared to Rs 5.52 crore in the year-ago quarter, which concluded in September 2023, sales increased 252.90% to Rs 19.48 crore in the quarter that ended in September 2024.

The company recently completed two preferential allotments and a significant acquisition which clearly solidified its growth in the fast-expanding EV industry.

Kavit Jayeshbhai Thakkar - CEO, Chairman, and Managing Director of Mercury EV-Tech Limited said "As India's EV market surges towards a projected USD 113.99 billion by 2029, Mercury EV Tech Limited stands ready to lead this revolution. Our end-to-end solutions approach, from state-of-the-art chassis manufacturing to advanced battery production, positions us uniquely in the industry. Our strategic location and expansive R&D center near Vadodara drive our innovation and distribution capabilities."

"Supported by government initiatives like FAME India and PLI schemes, we're aligned with the vision of Atmanirbhar Bharat. Our diverse product range, spanning two-wheelers to buses, caters to varied market needs. As we shape India's automotive future, our focus remains on innovation, quality, and sustainable growth. Join us in this exciting journey as we transform transportation, one electric vehicle at a time," he further added.

In an effort to increase expansion and shareholder value, Mercury EV-Tech Ltd. pursued two such mechanisms over the past year that are most likely to ensure expansion. In the first such allotment, the company made 1,44,25,666 equity shares to 40 investors at the price of Rs. 75 aiming to bring in liquidity in terms of funds to the business. In the second amount described above, the company issued up to 4,53,00,000 convertible warrants worth Rs. 75 each to nineteen investors. These warrants are convertible into equity shares within 18 months assuring investors of conversion opportunities for future equity. Allotments and placements of warrants and shares are in accordance with the provisions of the Companies Act 2013 and ICDR Regulations which are part and parcel of the growth strategy pursued by Mercury EV-Tech.

The share price of Mercury EV-Tech Ltd. moved very steadily on Friday and has increased significantly to be traded at Rs 107.70 thereby a growth of 0.56% up from Rs 107.10 on its previous close.

The stock has reached its peak price of Rs 143.8 and its minimum price of Rs 54 over the period of 52 weeks. Returning 31,000% of the investment over a duration of five years, this is indeed remarkable of the company and its respective market outlook. Foreign institutional investors are also eyeing this stock, as they bought 2,73,232 shares or 0.16% of the stake as of the month of September in the year 2024, which is a good sign for the investors as well.

Similarly, in line with its growth strategy, Mercury EV-Tech acquired a 70% stake in Haitek Automotive Private Limited for Rs 3.5 million, a move designed to enhance the company's footprint in the eastern state of India, West Bengal three-wheeler (3W) market. Now, with this acquisition, Mercury EV-Tech gets to utilize Haitek's existing infrastructure and customer base which helps in increasing their market share and profitability. Hence, the partnership will help the company in increasing its competitiveness in West Bengal's EV market.

The Gujarat Energy Development Agency has granted permission to Mercury EV-Tech to sell and distribute lithium ion battery-powered e-rickshaws in Gujarat for the fiscal 2024-25. For e-rickshaws of categories L5 and L3 manufactured by Mercury, any individual or dealer willing to purchase them will be provided with a subsidy of Rs 48,000, furthering the company's commitment to the environment and promoting the use of electric vehicles. This approval and subsidy from GEDA also enhances the status of Mercury EV-Tech in the EV market in Gujarat state and enhances its vision of providing sustenance to the environment.

This company performed very well in their recently published financial statements for Q1 FY25 and Ft 24 figures too. Mercury EV-Tech's recent activities seem to reinforce its status as one of the top players in the sustainable EV industry within India.