Mercury EV-Tech Stock Plummets to New 52-Week Low at Rs. 43

Mercury EV-Tech, a microcap player in the automobile industry, has reached a new 52-week low of Rs. 43 today, marking a significant downturn for the stock. This decline comes as the company has underperformed its sector by 1.96% and has seen a consecutive fall over the last three days, resulting in a total drop of 3.98% during this period.
The stock's performance over the past year has been notably poor, with a staggering decline of 62.98%, contrasting sharply with the Sensex's modest gain of 0.49%. Additionally, Mercury EV-Tech is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downward trend.

Despite the challenges reflected in its stock price, the company has reported healthy long-term growth metrics, with net sales increasing at an annual rate of 123.69% and operating profit rising by 84.22%. However, the high Debt to EBITDA ratio of 9.32 times raises concerns about its ability to service debt, while a low return on equity of 2.73% suggests limited profitability. As the market continues to evolve, Mercury EV-Tech's current position reflects a complex interplay of growth potential and financial challenges.