The shares of this smallcap company jumped upto 4 percent in Monday’s trading session after announcing a joint venture in Saudi Arabia to establish two plants to assemble electric vehicles.
Price Movement:
With a market capitalization of Rs. 1,439 crores, the shares of Wardwizard Innovations & Mobility Ltd started Monday’s trading session on a higher note at Rs. 55.85 compared to its previous close of Rs. 54.23.
During the trading session, the shares hit a high of Rs. 57.45, gaining around 4 percent and are currently trading at Rs. 55.11 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it received a Letter of Intent (LoI) to form a joint venture in the Kingdom of Saudi Arabia (KSA) for establishing two electric vehicle assembly plants.
The joint venture will include an assembly plant focusing on electric two-wheelers, three-wheelers, four-wheelers, and eventually electric buses. Additionally, an EV cell plant will be established to produce electric vehicle cells.
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Furthermore, the company mentioned that a comprehensive feasibility study has already been completed, confirming the viability of these ventures in Saudi Arabia. The study’s positive outcome has bolstered the company’s confidence in contributing to Saudi Arabia’s vision for sustainable transportation.
As part of the Joint Venture, Wardwizard Innovations will also bring its technological expertise and intellectual properties (IPs), including its advanced EV technologies and innovative manufacturing processes.
These contributions are expected to strengthen the joint venture’s position in the growing EV market and support Saudi Arabia’s transition towards an environmentally friendly transportation ecosystem.
Management Commentary:
Commenting on this milestone, Mr Yatin Gupte, Chairman and Managing Director, of Wardwizard Innovations & Mobility Limited, said, This partnership is a significant endorsement of our capabilities in the electric mobility sector. With the completion of the feasibility study, we are confident that this Joint Venture will contribute to the Kingdom’s vision for a sustainable future while strengthening our global presence.
Financials:
Looking at the company’s financial statements, the revenue declined by around 60 percent from Rs. 128.11 crores during the March quarter to Rs. 51.41 crores in the June quarter. On the other hand, the net profits decreased by around 42 percent from Rs. 3.97 crores to Rs. 2.30 crores during the same timeframe.
Expansion Plan:
The company plans to establish over 160 ‘Distributor Showrooms’ at the district level across India, which will serve as pivotal points for interaction with taluka-level dealers.
This initiative aims to empower high-performing taluka dealers by promoting them to the role of District Distributors, thereby expanding their responsibilities and influence within the distribution network.
Additionally, they plan to launch two new electric vehicle models and open a new experience centre in Delhi.
Recent Development:
Earlier, the company secured a significant order valued at USD 1.29 billion from Beulah International Development Corporation in the Philippines. The order represents a commitment to supply a large number of electric vehicles, which aligns with the growing demand for sustainable transportation solutions in the Philippines.
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Company Profile:
Headquartered in Vadodara, Gujarat, Wardwizard Innovations & Mobility Limited is a pioneering electric vehicle manufacturer in India. The company specializes in producing eco-friendly electric scooters and three-wheelers under its flagship brands, Joy e-bike and Joy e-rik.
Written By Vaibhav Patil
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