Is Mercury EV-Tech overvalued or undervalued?

Jun 09 2025 04:30 PM IST
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As of July 26, 2023, Mercury EV-Tech is considered very expensive and overvalued with a PE ratio of 143.08, significantly higher than its peers, and has underperformed the Sensex with a year-to-date decline of 32.15%.
As of 26 July 2023, the valuation grade for Mercury EV-Tech has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued, with a PE ratio of 143.08, an EV to EBITDA of 133.54, and an EV to Sales ratio of 12.08. These ratios suggest that the stock is trading at a premium compared to its earnings and sales, raising concerns about its valuation.

In comparison to peers, Mercury EV-Tech's PE ratio is notably higher than MMTC Ltd., which has a PE of 119.39, and Optiemus Infracom Ltd., which is valued at 82.35. Other peers like Elitecon International and Shree Global Tradefin Ltd. also exhibit high valuations, but none approach the extreme levels of Mercury EV-Tech. The company's recent stock performance has underperformed the Sensex, particularly year-to-date, where it has declined by 32.15% compared to the Sensex's gain of 5.56%. This further reinforces the notion that Mercury EV-Tech is currently overvalued in the market.
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