Mercury EV-Tech (531357)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹70.38 |
| Market Cap | ₹1,337.03 Cr |
| P/E Ratio | 114.93 |
| ROCE | 5.16% |
| ROE | 4.16% |
| Dividend Yield | 0% |
| Profit Growth | -79.21% |
| Debt/Equity | — |
| Sales Growth | -28.96% |
| 52-Week Range | ₹20 — ₹70.38 |
| Sector | Automobiles |
| Book Value | ₹4.39 |
Strengths
- Positive book value of ₹4.39 per share provides some equity cushion.
- Latest quarter is still profitable: ₹1 Cr net profit on ₹25 Cr sales.
- ROCE and ROE are positive (5.16% and 4.16%), so the company is not in a loss-making spiral.
Concerns
- Extremely expensive: P/E of 114.93 and P/B of 16.03 versus ROE of just 4.16%.
- Declining fundamentals: sales down 28.96% and profit down 79.21%.
- Weak health signals: Piotroski F-Score of 3/9 and FairStock Score of 0/100.
- No dividend and price at the 52-week high of ₹70.38, leaving no margin of safety.
AI Analysis
I'll begin with a simple truth: when I buy a stock, I am buying a stream of future cash, not a story. Mercury EV-Tech has a market capitalization of ₹1,337 Cr, but the latest quarter delivered only ₹25 Cr of sales and ₹1 Cr of net profit. That is a rounding error against the price. Sales have fallen 28.96% and profits have collapsed 79.21%. Even the trailing P/E of 114.93 is not high; it is absurd. The P/B of 16.03 is worse when the book value is just ₹4.39 and ROE is only 4.16%. Paying 16 times book for a 4% return on equity is the opposite of Graham's margin of safety. The Piotroski F-Score of 3/9 tells me the financial health is weak, and with zero dividend yield, I get no income while I wait. The stock sits at ₹70.38, the top of its 52-week range, after being at ₹20. That rise has been powered by excitement, not by the numbers above. A turnaround can be a wonderful investment, but I need evidence of recovery before paying for it. One profitable quarter of ₹1 Cr is not evidence; it is barely a pulse. If sales and profits stabilize and grow, I will look again, but only at a price that offers some protection. Today, the market is paying a premium for hope, and hope is not an investment strategy. As Ben Graham said, the market is a weighing machine in the long run. On the scale, this business weighs too little to justify the price. I will pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer