Stock Performance and Market Context
On 21 Jan 2026, Mercury EV-Tech Ltd (Stock ID: 762330) recorded a day change of -3.21%, closing at Rs.29.95, its lowest level in the past year. This decline extends a four-day losing streak during which the stock has fallen by 9.05%. The company’s shares are trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In comparison, the automobile sector has also faced pressure, with sector trading down by 2.19% on the same day. The broader market is similarly subdued; the Sensex opened 385.82 points lower and is currently trading at 81,774.49, down 0.49%. The Sensex has experienced a three-week consecutive decline, losing 4.65% over this period. Notably, the NIFTY MEDIA index also hit a new 52-week low today, indicating a wider market weakness.
Long-Term Price Trends and Relative Performance
Mercury EV-Tech’s 52-week high was Rs.91.89, highlighting the extent of the recent price erosion. Over the past year, the stock has delivered a negative return of 66.03%, starkly underperforming the Sensex, which posted a positive return of 7.81% during the same period. The BSE500 index also generated a 6.14% gain over the last year, further emphasising Mercury EV-Tech’s relative underperformance.
Valuation and Financial Metrics
The company’s current valuation metrics contribute to its market challenges. Mercury EV-Tech holds a Mojo Score of 36.0 and a Mojo Grade of Sell, downgraded from Hold on 20 May 2025. Its market capitalisation grade stands at 4, reflecting its size and liquidity considerations.
Return on Equity (ROE) is modest at 3.1%, while the Price to Book Value ratio is 2.1, indicating a relatively expensive valuation compared to its earnings power. Despite this, the stock trades at a discount relative to its peers’ historical valuations. The Price/Earnings to Growth (PEG) ratio is 0.4, suggesting that earnings growth is not fully reflected in the current price.
Shareholding and Institutional Interest
Domestic mutual funds hold no stake in Mercury EV-Tech Ltd, a notable absence given their capacity for detailed company research. This lack of institutional ownership may reflect reservations about the company’s current price levels or business fundamentals.
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Revenue and Profit Growth
Despite the share price decline, Mercury EV-Tech has demonstrated robust top-line and bottom-line growth. Net sales have expanded at a compound annual growth rate of 125.97%, while operating profit has grown at 70.01% annually. For the nine months ended, net sales reached Rs.87.26 crores, representing a year-on-year increase of 201.73%. Profit after tax (PAT) for the same period was Rs.4.54 crores, up 95.69% compared to the previous year.
The company has reported positive results for five consecutive quarters, indicating consistent operational performance despite market headwinds.
Sector and Market Dynamics
The automobile sector, in which Mercury EV-Tech operates, has faced a challenging environment. The sector’s recent trading decline of 2.19% and the broader market’s subdued performance have contributed to the stock’s downward pressure. Mercury EV-Tech’s underperformance relative to its sector peers and the market at large reflects both company-specific and macroeconomic factors.
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Summary of Key Metrics
To summarise, Mercury EV-Tech Ltd’s stock has reached a new 52-week low of Rs.29.95, reflecting a 66.03% decline over the past year. The stock’s valuation metrics, including a Price to Book Value of 2.1 and ROE of 3.1%, indicate a premium relative to earnings. The company’s Mojo Grade was downgraded to Sell from Hold in May 2025, with a current Mojo Score of 36.0.
While the company has delivered strong revenue and profit growth, its share price has not mirrored this performance. The absence of domestic mutual fund ownership and the stock’s trading below all major moving averages underscore the cautious market sentiment. The broader automobile sector and market indices have also experienced declines, contributing to the stock’s recent price movements.
Market Outlook and Positioning
Mercury EV-Tech Ltd’s current market position is shaped by a combination of valuation considerations, relative performance, and sector dynamics. The stock’s recent price action and technical indicators suggest ongoing challenges in regaining upward momentum. Investors and market participants continue to monitor the company’s financial results and sector developments closely.
Conclusion
The fall to a 52-week low at Rs.29.95 marks a significant milestone for Mercury EV-Tech Ltd, reflecting both company-specific factors and broader market pressures. The stock’s performance over the past year contrasts with its operational growth, highlighting the complex interplay between valuation, market sentiment, and sector trends.
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