On Thursday, shares of one of India’s leading Electric Vehicle manufacturers gained 13 percent to Rs 43 per share after the company signed a Memorandum of Understanding (MOU) with the Gujarat Government for the development of an Electric Vehicle Ancillary Cluster.
At 3:16 p.m., Wardwizard Innovations and Mobility Ltd shares were trading at Rs 41.01 per share, up Rs 3.19 or 8.40 percent from the previous close price on the exchange. The company has a market capitalization of Rs 1,085 crore.
According to Wardwizard Innovations and Mobility regulatory filing, The Company signed a Memorandum of Understanding (MOU) with the Gujarat Government of Rs. 2,000 Crore for the development of an Electric Vehicle Ancillary Cluster by 2024 which Targets to Generate More Than 5,000 Employment Opportunities as a Part of EV Ancillary Cluster.
Under this agreement, Wardwizard is set to make a substantial investment of Rs. 2,000 crores, spanning various critical areas. This includes research and development of electric 2 & 3-wheelers, the establishment of motor assembly at Vadodara’s facility, Li-ion Cell production, and the development of ancillaries for raw material manufacturing.
The company’s revenue has decreased by 31 percent year on year, from Rs 54 crore in Q1FY23 to Rs 37 crore in Q1FY24. During the same timeframe, Net profit has declined by 50 percent from Rs 2 crore to Rs 1 crore.
In the most recent fiscal year’s company’s profitability metric shows a return on equity of 10.63 percent and a return on capital employed of 14.13 percent.
According to the latest shareholding pattern, the promoters hold 70.45 percent of the company, and retail investors hold 29.54 percent stake in the company.
Wardwizard Innovations & Mobility Ltd. is one of India’s leading auto-manufacturing companies in the Electric Vehicle (EV) segment under the brand name Joy e-bike.
Written by Omkar Chitnis
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