Mercury EV-Tech Faces Stock Volatility Amidst Strong Sales Growth and High Debt Concerns

Mercury EV-Tech, a microcap player in the automobile industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 45.05. The stock has underperformed its sector by 3.41% and has seen a consecutive decline over the past four days, resulting in an overall drop of 8.48% during this period.
In terms of moving averages, Mercury EV-Tech is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a bearish trend. Over the past year, the stock has declined by 38.69%, contrasting sharply with the Sensex's modest gain of 1.04%.

Despite these challenges, the company has reported impressive growth metrics, with net sales increasing at an annual rate of 123.69% and operating profit rising by 84.22%. The latest six-month figures show net sales at Rs. 53.25 crore, reflecting a remarkable growth of 464.09%, while profit after tax has surged by 390.28% to Rs. 3.53 crore. However, the company faces concerns regarding its high Debt to EBITDA ratio of 9.32 times and a low return on equity of 2.73%, which may impact its financial stability moving forward.