This Microcap stock, which is in the business of trades electronics, mobile phones, home appliances, apparel, and others up 2 percent after the company reported a net profit increase of 122 percent and the company plans for business expansion.
Price Movement
In Monday’s trading session, Rockingdeals Circular Economy Limited stock was up 2 percent in the day’s trade after the company reported a net profit increase of 122 percent. The stock has delivered a return of around 73 percent in the past year outperforming the Nifty Index in the same period. The stock touched a high of Rs. 549.90 which is 1.8 percent higher than the previous close price of Rs. 539.75. The stock rebounded and was trading at Rs. 540 which is 0.05 percent higher than the closing price.
What happened
Such a bullish movement in the scrip price was a result of an earnings update released by the company. As the company is in Microcap space they release their reports semi-annually. The company posted a significant improvement in net profits and a jump in revenue in H1FY25.
According to its recent filing, H1FY25, Rockingdeals Circular Economy Ltd reported a 36.8 percent increase in revenue to Rs.21.36 crore in H1FY25, compared to Rs.15.61 crore in H1FY24. Furthermore, half-yearly, the company saw a decrease of 37 percent in revenue from Rs.33.95 crore in H2FY24.
In the same period, the company reported a significant increase in net profit of 122 percent to Rs.3.2 crore in H1FY25, up from Rs.1.44 crore in H1FY24 and a 15 percent decline from Rs.3.77 crore in H2FY24. The company has a current ratio of 3.52 and a debt-to-equity ratio of 0.16.
Expansion Plans
Mr. Aman Preet, Founder & CEO of RockingDeals Circular Economy, highlighted the company’s H1FY25 performance and the company plans to expand internationally, starting in Dubai, and improve its circular economy solutions while growing its retail presence, especially in tier two cities through stores and franchises.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 65.01 percent stake in Rockingdeals Circular Economy, Foreign Institutional Investors (FII) holding around 0.03 percent, Domestic Institutional investors (DII) standing at 0.18 percent, and public holdings standing at 34.79 percent.
Revenue Segment
According to the company’s half-yearly September 2024 report, they considered revenue from a single segment as of H1FY25.
About the company
The company was founded in 2002, Rockingdeals Circular Economy Limited is an Indian B2B recommerce company that specializes in managing excess inventory and providing sustainable procurement solutions. They effectively connect premium brands with budget-conscious consumers while focusing on bulk trading of surplus stock, open-box inventory management, and the distribution of refurbished products. Rockingdeals extends product lifecycles, minimizes electronic waste, offers procurement options, and generates value through recommerce initiatives.
Written by Santhosh S
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