Multibagger EV Stock Locked In 5% Upper Circuit Amid Fundraising Plans & Business Growth Moves

On Thursday, the shares of the multibagger EV stocks of Dalal Street Mercury Ev-Tech opened at a 5% upper circuit limit of Rs 92.36. Mercury Ev-Tech has generated a multibagger return of 121% in the last 1 year and the share price has surged from Rs 0.34 to Rs 92.36 in 5 years representing a staggering multibagger gain of 27,064.71%.
With a market capitalization now exceeding Rs 1,470 crore.

On Tuesday, the company announced plans to raise funds via a preferential issue of convertible equity warrants and/or equity shares. Mercury EV-Tech informed the stock exchanges that its board of directors will meet on Friday, September 13, 2024, to discuss this fundraising initiative. The company stated, "The Meeting of the Board of Directors will be held on Friday, September 13, 2024, to consider raising funds by way of issuing Convertible Equity Warrants and/or Equity Shares on a Preferential Basis, subject to member and regulatory approvals as required."

Despite the stock's impressive rally, Mercury EV-Tech's recent financial performance presents a mixed picture. For the quarter ending June 2024, the company reported standalone net sales of Rs 2.58 crore, a decline of 59.35% from Rs 6.35 crore during the same period in 2023. The company's quarterly net profit also dropped by 47.5%, from Rs 0.74 crore in June 2023 to Rs 0.39 crore in June 2024. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a decline, standing at Rs 0.74 crore in June 2024, down 22.92% from Rs 0.96 crore in the previous year. Additionally, earnings per share (EPS) decreased from Rs 0.04 in June 2023 to Rs 0.02 in June 2024.

One of the most significant developments for Mercury EV-Tech came in April 2024, when the company secured approval from the Government of the National Capital Territory (NCT) of Delhi to sell two of its electric vehicle models. The first approved model is a passenger e-rickshaw with a seating capacity of seven people (6+1) and a gross vehicle mass (GVM) of 1,050 kg. Mercury EV-Tech is notably the first company to receive approval for this specific e-rickshaw design. The second approved vehicle is an e-cart loader, also with a GVM of 1,050 kg, a single seat, and a load-carrying capacity of 488 kg.

Mercury EV-Tech Limited has established itself as a pioneer in India's electric vehicle industry. The company manufactures a wide range of electric vehicles, including electric scooters, cars, buses, vintage cars, and golf carts. Its products cater to various sectors, such as hospitality, golf courses, and resorts. In recent years, Mercury EV-Tech has expanded its research and development efforts to focus on electric two-wheelers (2W), three-wheelers (3W), and four-wheelers (4W), demonstrating its commitment to innovation and growth.