Re 0.85 to ₹85: Multibagger penny stock turns ₹1 lakh into ₹1 crore in three years

Multibagger penny stock: Investing in the stock market has long been recognised as a pathway to potential wealth creation. Identifying and holding onto promising stocks over an extended period can yield significant returns.

However, achieving consistent returns is challenging due to daily share price volatility and market fluctuations. Yet, some exceptional stocks demonstrate the ability to deliver steady returns even amidst market uncertainties, economic downturns, and industry disruptions.

Mercury EV-Tech stands out as one such gem, exemplifying resilience and stability in the equity markets with its consistent upward trajectory, breaking record highs with each passing year. The company, which is an electric vehicle manufacturer, saw its shares rise steadily since 2022, moving from Re 0.85 apiece to the current trading price of ₹85, translating into a massive gain of 9,900 per cent.

If an investor had invested ₹1 lakh in the shares at the start of this period and held onto the investment until today, the value would have surged to an impressive ₹1 crore. This highlights the potential of the equity market to grow investors’ wealth to staggering levels, provided the right stocks are chosen.

This stellar performance is particularly notable due to the stock’s strong annual performance. In CY22, it delivered a 1300% return, followed by another substantial gain of 897% in the following calendar year.

About Mercury EV-Tech

The company is engaged in the manufacturing and trading of electric vehicles and other related renewable energy products. It not only produces vehicles but also manufactures critical components such as batteries, chassis, and motor controllers.

Its product range spans from two-wheelers to buses, loaders, and passenger vehicles, catering to various transportation needs. The company’s subsidiary, DC2 Mercury Cars Private Limited, recently participated in the “Bharat Mobility Global Expo (BMGE) 2025 – Auto Expo,” where it unveiled two products: e-TANQ, a off-roader, and Europa, an ultra-luxurious showroom on wheels.

Additionally, the company showcased and upgraded its battery-operated 3W E-Rikshaw L5 (7-seater), which is designed according to European standards, as per the company’s latest regulatory filing.

Looking at the company’s financial performance, it reported a net profit of ₹1.60 crore in Q2FY25, which is a 171% growth as compared to a net profit of ₹0.59 core, while the revenue from operations during the reporting quarter stood at ₹19.48 crore as compared to a revenue of ₹5.52 crore in Q2FY24. 

Market Opportunity

The electric vehicle market is experiencing significant growth, driven by factors such as increasing environmental awareness, government incentives, technological advancements, and improvements in battery technology. As a result, established automakers and new entrants are investing heavily in EV development.

The Indian automobile industry is the fifth largest in the world and is expected to become the third largest by 2030. According to the India Energy Storage Alliance (IESA), the Indian EV industry is expected to expand at a CAGR of 36%.

As population rises and demand for vehicles grow, dependence on conventional energy resources is not a sustainable option as India imports close to 80% of its crude oil requirements. 

NITI Aayog aims to achieve EV sales penetration of 70% for all commercial cars, 30% for private cars, 40% for buses and 80% for two and three-wheelers by 2030. This is in line with the goal to achieve net zero carbon emission by 2070.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.