Multibagger EV-Stock With 38,900 Per Cent Returns; Hit Upper Circuit As Company Purchased 70 Per Cent Stake In Haitek Automotive Pvt Ltd
The stock gave multibagger returns of 172 per cent in just 1 year, 19,400 per cent in 3 years and a whopping 38,900 per cent in 5 years.
On Tuesday, shares of Mercury EV-Tech Ltd hit a 5 per cent upper circuit to Rs 132.60 per share from its previous closing of Rs 126.29. The stock’s 52-week high is Rs 143.8 and its 52-week low is Rs 44.02.
The acquisition of a 70 per cent stake in Haitek Automotive Private Limited for Rs 35,00,000 is a strategic move by Mercury EV-Tech Limited to expand its presence in the 3W market in West Bengal. This region offers significant potential for scale and growth, enabling Mercury to enhance production efficiency and reduce costs. By acquiring Haitek, Mercury can leverage its existing operations, distribution networks, and customer base, leading to increased market share and improved profitability. Synergies from this acquisition might also facilitate shared resources, technology transfer, and innovation in product development. The acquisition is a cash transaction with a total consideration of Rs.35,00,000, acquiring 70 per cent of Haitek's equity shares. The acquired entity, Haitek Automotive Private Limited, was incorporated in August 2022 and specializes in manufacturing electric 3W vehicles. It has a history of a turnover of Rs 56,61,161 in its first year of operation.
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Earlier, the Gujarat Energy Development Agency (GEDA) approved the company to market and distribute lithium-ion battery-powered e-rickshaws in Gujarat for the 2024-25 fiscal year. This endorsement is a major achievement for our company, confirming our innovative approach and high standards in the electric vehicle industry. Furthermore, its L5 and L3 category e-rickshaws have been officially approved for a subsidy of Rs 48,000 per vehicle when sold within Gujarat. This accomplishment underscores our leadership in promoting sustainable practices and strengthens our dedication to driving progress in the electric vehicle sector. It reaffirms our commitment to advancing technology and contributing to a greener future, positioning us as a leading force in the Gujarat electric vehicle market.
Mercury EV-Tech Ltd, formerly known as Mercury Metals Limited, is involved in the manufacturing of electric scooters, electric cars, electric buses, electric vintage cars, electric golf cars, and electric vehicles in India. The company has a market cap of over Rs 2,300 crore and reported positive numbers in Quarterly Results (Q1FY25) and annual results (FY24).
As of June 2024, the promoters of the company hold a 62.10 per cent stake, while the remaining 39.90 per cent is owned by the public. The stock gave multibagger returns of 172 per cent in just 1 year, 19,400 per cent in 3 years and a whopping 38,900 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.