Mercury EV-Tech Ltd Stock Falls to 52-Week Low of Rs.35

Stock Price Movement and Market Context

On 9 Jan 2026, Mercury EV-Tech Ltd (Stock ID: 762330), operating in the Automobiles sector, recorded a day change of -1.00%, underperforming its sector by 0.48%. The stock’s decline to Rs.35 represents a new 52-week low, a notable drop from its 52-week high of Rs.93.01. Over the last three trading sessions, the stock has steadily fallen, reflecting a negative momentum that has pushed it below all key moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.

In contrast, the Sensex opened lower by 158.87 points but recovered to close marginally higher at 84,190.61, just 2.34% shy of its 52-week high of 86,159.02. The mid-cap segment led gains with the BSE Mid Cap index rising by 0.04%, highlighting a divergence between Mercury EV-Tech’s performance and broader market trends.

Financial Performance and Valuation Metrics

Mercury EV-Tech’s one-year performance has been notably weak, with the stock delivering a negative return of -60.54%, starkly contrasting with the Sensex’s positive 8.47% return over the same period. Despite this, the company has reported 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 also posted positive results for five consecutive quarters, with a 9-month PAT of Rs.4.54 crores growing by 95.69% and quarterly net sales reaching Rs.34.01 crores, up 25.6% compared to the previous four-quarter average.

However, valuation concerns remain. Mercury EV-Tech carries a Price to Book Value of 2.4, which is considered very expensive relative to its return on equity (ROE) of 3.1%. The company’s Mojo Score 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 and valuation profile. The PEG ratio of 0.4 indicates that while profits have grown substantially, the stock price has not kept pace, contributing to the current valuation disconnect.

Market Position and Institutional Interest

Despite the company’s size and growth in profits, domestic mutual funds hold no stake in Mercury EV-Tech Ltd. This absence of institutional ownership may reflect a cautious stance by professional investors, potentially due to valuation concerns or other factors affecting confidence in the stock. The stock’s underperformance relative to the BSE500 index, which has generated a 7.19% return over the past year, further underscores its divergence from broader market trends.

Technical Indicators and Trend Analysis

Technically, Mercury EV-Tech’s share price trading below all major moving averages signals a bearish trend. The stock’s inability to sustain levels above the 5-day and 20-day moving averages suggests short-term weakness, while its position below the 50-day, 100-day, and 200-day averages indicates longer-term pressure. This technical setup aligns with the recent three-day consecutive decline and the new 52-week low, highlighting the challenges the stock faces in regaining upward momentum.

Summary of Key Metrics

Mercury EV-Tech Ltd’s current market capitalisation grade is 4, reflecting its mid-tier size within the sector. The company’s Mojo Grade downgrade from Hold to Sell on 20 May 2025, combined with a Mojo Score of 36.0, indicates a cautious outlook based on valuation and price performance. The stock’s Price to Book Value of 2.4 is high relative to its ROE of 3.1%, suggesting that the market is pricing in expectations that have yet to materialise fully in returns.

While the company’s net sales and profit growth rates are strong, the stock’s price performance has not mirrored these fundamentals, resulting in a significant gap between operational progress and market valuation. This disparity is further emphasised by the lack of domestic mutual fund participation, which often signals institutional scepticism.

Broader Market Comparison

In the context of the broader market, Mercury EV-Tech’s underperformance is pronounced. The Sensex’s near 2.34% proximity to its 52-week high and the positive returns of mid-cap indices contrast with the stock’s 60.54% decline over the past year. This divergence highlights the challenges faced by Mercury EV-Tech within the competitive and cyclical automobile sector.

Conclusion

Mercury EV-Tech Ltd’s fall to a 52-week low of Rs.35 reflects a combination of valuation concerns, subdued price momentum, and limited institutional interest despite solid growth in sales and profits. The stock’s technical indicators and recent price action underscore the prevailing cautious sentiment among market participants. While the company continues to report positive quarterly results and strong sales growth, these factors have yet to translate into sustained price appreciation, as evidenced by the stock’s significant underperformance relative to the broader market and sector peers.

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