Multibagger small-cap company hits an all-time high and gets locked in upper circuit; here’s why
Over the past one-year, shares of the company has given multibagger returns of 115.54% and the company has been hitting back-to-back upper circuit for the past few days.
Reason for the price action
Mercury EV-Tech Ltd which is in the business of manufacturing electric vehicles hit an all-time high today and is locked in the upper circuit at Rs 124.23. The stock is hitting back-to-back upper circuit at 5% from the last few trading days. Yesterday, the company reported to the exchanges that company has acquired a 20% stake in Powermetz Energy Private Limited. This move has elevated Powermetz Energy to the status of a wholly-owned subsidiary (WoS) of Mercury EV-Tech Limited.
Powermetz Energy Private Limited is engaged in the manufacturing & trading of lithium batteries. As of the last audited balance sheet on March 2023, the turnover stood at Rs 2.68 crore. With an existing 80% stake in Powermetz Energy, the acquisition of the remaining 20% solidifies the company’s position as it specializes in manufacturing and trading Lithium batteries, an essential component for E-vehicles. The acquisition cost is Rs 10,60,000 (Rupees Ten Lakhs Sixty Thousand only) which is Rs 5.30 per share.
Stock Performance
In yesterday’s trading session, the stock closed at Rs 118.32. Today, it opened at Rs 124.23 and got locked in the upper circuit and hit a 52-week high at the same price. The company’s 52-week low stands at Rs 8.28. The company currently boasts a market capitalization of approximately Rs 2,100 crore. Over the past one-year, shares of the company has given multibagger returns of 115.54% and the company has been hitting back-to-back upper circuit for the past few days.
About the company
Mercury Ev-Tech is a pioneer in the manufacturing of Electric Scooter, Electric Car, Electric Bus, Electric Vintage cars, Electric Golf Car and Electric Vehicles in India. The company develops custom electric vehicles for a wide range of applications for the hospitality, industry, golf courses, Club and Resorts etc.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.