The shares of Rattanindia Enterprises Limited (REL) zoomed 10.39% on Wednesday’s early trades to reach an intraday high of ₹ 41.95 apiece. Its shares were trading at ₹ 40.90 apiece at 11:44 AM on The National Stock Exchange (NSE).
In an exchange filing on February 13, 2023, the company announced that it has launched two drones with a carrying capacity of 20 kg. The new series helps in massifying drone delivery usage across industries, by acting as a catalyst.
Rattanindia Enterprises is active in new-age businesses including electric motorcycles, drone solutions, e-commerce and fintech. In addition, it has a presence in a wide range of businesses like software design and development, human resources, consultancy, and so on.
It has designed a new platform to meet the increasing demand for deliveries using drones in the industry. Its L-series can carry significantly higher payloads. These drones are designed to work across various altitudes. They are designed, developed, and manufactured in India.
Anjali Rattan, Business Chairperson of RattanIndia Enterprises said that the drone delivery market is expected to reach $32 billion (~INR, 2,50,000 Cr) by 2031 as per the market estimates. She said that REL spotted the segment early and has been innovating in this space for a while.
REL is a small-cap company with a market capitalization of ₹ 5253 crores. It has an excellent return on equity of 141.41% and an ideal debt-to-equity ratio of 1.00. Its shares were trading at a price-to-earnings (P/E)ratio of 12.46 which is higher than the industry P/E of 8.04, indicating that the stock might be overvalued as compared to its peers. This could also mean that investors are willing to pay more for its future earnings.
Written by Simran Bafna
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