Stock Performance and Market Context
On the day the new low was hit, Mercury EV-Tech’s stock underperformed its sector by 2.02%, closing with a day change of -2.21%. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish sentiment. This contrasts with the broader market, where the Sensex recovered from an early negative opening to close marginally higher at 83,583.52, just 0.01% up and only 3.08% shy of its 52-week high of 86,159.02.
Despite the Sensex’s resilience, Mercury EV-Tech has lagged significantly over the past year. The stock’s one-year return stands at -61.71%, starkly underperforming the Sensex’s 8.14% gain and the BSE500’s 7.20% return. This divergence highlights company-specific pressures amid a generally positive market backdrop.
Valuation and Financial Metrics
Mercury EV-Tech’s current valuation metrics contribute to its subdued market performance. The company holds a Mojo Score of 36.0 and has been downgraded from a Hold to a Sell grade as of 20 May 2025. Its market capitalisation grade is rated 4, indicating a relatively modest size within its sector.
The stock’s price-to-book value stands at 2.4, which is considered expensive relative to its peers’ historical averages. This valuation is notable given the company’s return on equity (ROE) of just 3.1%, suggesting limited profitability relative to its book value. The PEG ratio of 0.4 indicates that while profits have grown, the stock price has not kept pace with earnings growth, reflecting market scepticism.
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Shareholding and Market Interest
Domestic mutual funds currently hold no stake in Mercury EV-Tech Ltd, a notable point given their capacity for detailed company research. This absence of institutional ownership may reflect a cautious stance on the stock’s valuation or business prospects at prevailing prices.
The company’s downgrade to a Sell grade by MarketsMOJO further underscores the cautious market view, with the downgrade occurring in May 2025 following a period of underwhelming price performance and valuation concerns.
Operational and Financial Trends
Despite the share price decline, Mercury EV-Tech has demonstrated robust growth in key financial metrics. Net sales have expanded at an annual rate of 125.97%, while operating profit has increased by 70.01%. The company has reported positive results for five consecutive quarters, with a 9-month PAT of Rs.4.54 crores growing by 95.69%. Quarterly net sales of Rs.34.01 crores reflect a 25.6% increase compared to the previous four-quarter average.
These figures indicate healthy underlying business expansion, although this has not translated into share price appreciation over the past year.
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Sector and Industry Positioning
Operating within the Automobiles industry and sector, Mercury EV-Tech faces competitive pressures that have influenced its market valuation. The stock’s 52-week high was Rs.92.80, indicating a substantial decline of approximately 63.6% from that peak to the current 52-week low of Rs.33.75. This wide price range reflects significant volatility and investor caution over the past year.
While the broader market, led by mega-cap stocks, has shown resilience, Mercury EV-Tech’s performance has diverged markedly, underscoring company-specific factors impacting its share price trajectory.
Summary of Key Metrics
To summarise, Mercury EV-Tech Ltd’s current market profile includes:
- New 52-week low price of Rs.33.75 as of 12 Jan 2026
- Four consecutive days of share price decline, totalling -7.89%
- Mojo Score of 36.0 with a Sell grade, downgraded from Hold in May 2025
- Price-to-book value of 2.4 and ROE of 3.1%
- One-year stock return of -61.71% versus Sensex gain of 8.14%
- Strong sales and profit growth, with net sales rising 125.97% annually and PAT growth of 95.69% over nine months
- Zero domestic mutual fund ownership
These factors collectively illustrate the stock’s current valuation challenges and market positioning amid a generally positive broader market environment.
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