Mercury EV-Tech Ltd Stock Falls to 52-Week Low of Rs.32

Stock Price Movement and Market Context

The stock of Mercury EV-Tech Ltd (Stock ID: 762330) has been on a downward trajectory, falling to Rs.32, its lowest level in the past year. This decline comes after two consecutive days of losses, with the stock shedding 2.53% over this period. Today’s performance saw the stock underperform its sector by 1.95%, reflecting broader pressures within the automobile industry.

Mercury EV-Tech is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical positioning underscores the challenges the stock faces in regaining upward momentum in the near term.

Meanwhile, the broader market has also experienced a downturn. The Sensex opened flat but declined by 538.19 points, or 0.73%, closing at 82,956.30. The index is now 3.86% below its 52-week high of 86,159.02 and has recorded a three-week consecutive fall, losing 3.27% over this period. The Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying resilience in the broader market.

Financial Performance and Valuation Metrics

Over the past year, Mercury EV-Tech Ltd’s stock has declined by 63.90%, a stark contrast to the Sensex’s positive return of 8.28% and the BSE500’s 7.42% gain. Despite this share price decline, the company has reported robust growth in its financials. Net sales for the nine months ended stood at Rs.87.26 crores, reflecting a growth rate of 201.73%. Operating profit has also expanded at an annual rate of 70.01%, while profit after tax (PAT) for the nine months reached Rs.4.54 crores, up 95.69% year-on-year.

Mercury EV-Tech has declared positive results for five consecutive quarters, indicating consistent operational performance. However, the return on equity (ROE) remains modest at 3.1%, and the stock trades at a price-to-book value of 2.2, which is considered expensive relative to its earnings profile. The company’s PEG ratio stands at 0.4, suggesting that the stock’s price does not fully reflect its earnings growth potential.

Market Position and Institutional Holding

Mercury EV-Tech Ltd operates within the automobile sector, which has faced mixed sentiment in recent months. Despite the company’s size, domestic mutual funds hold no stake in the stock, a notable factor given their capacity for detailed research and due diligence. This absence of institutional ownership may reflect cautious sentiment regarding the stock’s valuation or business outlook at current price levels.

The stock’s market capitalisation grade is rated 4, indicating a mid-sized company with moderate market presence. The Mojo Score for Mercury EV-Tech stands at 36.0, with a Mojo Grade of Sell, downgraded from Hold on 20 May 2025. This downgrade reflects a reassessment of the stock’s risk-reward profile amid recent price declines and valuation concerns.

Comparative Performance and Sector Dynamics

In comparison to its peers, Mercury EV-Tech’s valuation appears discounted relative to historical averages, despite its elevated price-to-book ratio. The stock’s underperformance relative to the BSE500 index, which has delivered 7.42% returns over the past year, highlights the divergence between the company’s share price trajectory and broader market trends.

The automobile sector itself has experienced volatility, influenced by factors such as supply chain disruptions, fluctuating raw material costs, and evolving consumer demand patterns. Mercury EV-Tech’s recent price action and technical indicators suggest that these sectoral headwinds have weighed on investor sentiment towards the stock.

Summary of Key Metrics

To summarise, Mercury EV-Tech Ltd’s stock has reached a 52-week low of Rs.32, reflecting a 63.90% decline over the past year. This contrasts with the Sensex’s 8.28% gain and the BSE500’s 7.42% rise during the same period. The company’s financials show strong sales and profit growth, with net sales increasing at an annual rate of 125.97% and operating profit growing by 70.01%. However, the stock’s valuation metrics, including a price-to-book ratio of 2.2 and a modest ROE of 3.1%, suggest a cautious market stance.

Trading below all major moving averages and with no institutional backing from domestic mutual funds, the stock’s recent price action highlights the challenges it faces within a volatile sector and broader market environment.

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