Mercury Ev-Tech Limited

Consumer Cyclical — Auto Manufacturers · NSE

₹36.69+₹0.55 (+1.52%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Mercury Ev-Tech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mercury Ev-Tech Limited manufactures and trades electronic vehicles and other related parts in India. It offers electric cars, two-wheelers, commercial vehicles, and industrial fleets.

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees109

Annual revenue₹102 Cr

How does it make money?

Turns over ₹102 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 109 employees supports ₹93.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹93.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, MAHINDRA & MAHINDRA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE19.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +554% while net margin moved -52% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+554%

Margin effect-52%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 2.03 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

47/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

26/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

152.9x

Sector Median

25.2x

median of 3 sector peers

⚠️Against its sector it trades 507% above the peer median of 25.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

25.2x median of 3 peers · +507%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

115.0x

PEG

3.28

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 8.73x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 949% against revenue up 554% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 868% against revenue up 554% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 4.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.8% to 6.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 949% against revenue up 554%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 507% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 65% a year✓ 87.0% CAGR
Latest reported year was 46.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹55 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 2.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹697 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

152.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.51x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.24

Profitable

Profitable on a per-share basis

ROE

1.6%

Weak

Weak capital efficiency

ROCE

2.3%

Weak

Low return on total capital employed

Debt/Equity

8.73x

High

High leverage

Revenue Growth (YoY)

46.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹55 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.9%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

4.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

2.03

High swing

Swings more than the market in both directions

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

37.9 / 37.8

Bullish alignment (short > long)

RSI (14)

28.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹22 Cr	₹90 Cr	₹102 Cr	+87.0%
EBITDA	₹2 Cr	₹3 Cr	₹9 Cr	₹6 Cr	+54.8%
EBITDA Margin	10.8%	15.5%	10.6%	6.1%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹8 Cr	₹4 Cr	+46.6%
EPS	₹0.08	₹0.11	₹0.39	₹0.22	+40.1%
ROE	2.8%	2.5%	2.8%	1.6%	—
ROCE	2.2%	2.3%	3.5%	2.3%	—
Total Debt	₹23 Cr	₹56 Cr	₹6 Cr	₹24 Cr	+1.9%
Free Cash Flow	-₹56 Cr	-₹38 Cr	-₹67 Cr	-₹55 Cr	—

🟢 Revenue has grown at 87.0% a year over 3 years.

🟢 EBITDA has grown at 54.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.8% to 6.1% over 3 years (-4.7 pts).

🟢 PAT (Net Profit) has grown at 46.6% a year over 3 years.

🟢 EPS has grown at 40.1% a year over 3 years.

🔴 ROE has fallen from 2.8% to 1.6% over 3 years (-1.2 pts).

🟡 ROCE has held roughly flat at 2.3% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (1.9% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹357 Cr

Total Liabilities

₹78 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹32 Cr

Capex

-₹24 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.1%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TATA MOTORS LIMITED	37.1x	32.8%
TATA MOTORS PASS VEH LTD	—	-3.0%
MAHINDRA & MAHINDRA LTD	17.8x	19.7%

Recent News

1 positive2 mixed3 general

GRP vs Mercury EV-Tech vs ZF Steering Gear (India)

Univest, 16 Oct

Multibagger Mercury EV-Tech stock to be in focus on Friday after June quarter results

Livemint, 13 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

MERCURYEV Stock Price and Chart — NSE:MERCURYEV

TradingView, 02 Jun

Mercury EV-Tech reschedules 40th AGM to September 30, 2026

scanx.trade, 04 Oct

Mercury Ev-Tech Share Price Jumps 14% On India–EU EV Policy Buzz

Samco, 27 JanPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Mercury EV-Tech consolidated net profit rises 29.92% in the June 2026 quarter

Business Standard, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑