Recommendation from Pharmaceuticals & Drugs and Miscellaneous Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

MERCURY EV-TECH LTD
CMP - ₹126.29
BSE CODE 531357
Volume 26,99,512
Face Value ₹1
Target ₹136 - ₹139
Stoploss ₹117 (CLS)

Mercury Ev-Tech Ltd, formerly known as Mercury Metals Ltd, made its mark by launching a range of electric vehicles aimed at promoting environmental conservation and preserving natural resources. As a pioneer in electric vehicle manufacturing in India, the company produces electric scooters, cars, buses, vintage cars, and golf cars. The company recently announced that its Board of Directors has approved a preferential issue of up to 1,57,41,000 equity shares for ₹75 per share, with a face value of Re 1 and a premium of ₹74 per share. Additionally, the board approved the issuance of up to 4,83,00,000 convertible warrants, priced at ₹75 per warrant. Each warrant is convertible into or exchangeable for one fully paid-up equity share of the company with a face value of Re 1. Since the announcement, the shares have seen a robust rally, with monthly gains of around 75 per cent and are currently hitting consecutive upper circuits. With a 52-week high of ₹143 on the BSE, the stock shows strong upside potential. Therefore, we recommend BUY.

Blue Cloud Softech Solutions Ltd
CMP - ₹163.60
BSE CODE 539607
Volume 1,68,296
Face Value ₹2
Target ₹177 - ₹180
Stoploss ₹152 (CLS)

The company offers a diverse range of products, including artificial intelligence, cybersecurity solutions, and healthcare technology. Its portfolio encompasses a wide array of services such as digital transformation, managed IT solutions, cloud migration, software architecture. Considering the company's quarterly performance, it reported a strong growth of 208 per cent from ₹34.49 crore registered in Q1FY24, recording total revenue of ₹106.48 crore in Q1FY25. Compared to the same quarter last year, the net profit for the first quarter of FY25 skyrocketed 854 per cent, from ₹0.81 crore to ₹7.74 crore. The company has announced that it will consider a sub-division or split of its equity shares in a board meeting scheduled for October 16, 2024. After soaring 300 per cent in the June quarter and undergoing a notable correction, the shares have seen renewed investor interest in recent trading sessions. Given its demonstrated potential and the positive impact of the upcoming corporate action, we recommend BUY.