A newly listed automobile stock gained 2 percent after Plutus Capital Management acquired a stake worth Rs.18 lakhs. The investment has sparked fresh investor interest, indicating growing confidence in the company’s prospects soon after its market debut.
Price Movement
During Wednesday’s trading session the shares of Resourceful Automobile Ltd reached an intra-day high of Rs.64.01 per share, rising 2.24 percent from its previous close of Rs.62.60 per share. However the stock later entered the ASM LT: Stage 1. Since its listing in August 2024, the stock has declined by over 48 percent till date.
What Happened
Plutus Capital Management LLP, a domestic institutional investor, recently acquired 30,000 equity shares of the newly listed automobile company. The shares were purchased at an average price of Rs.59.68 each, amounting to a total investment of approximately Rs.18 lakhs. This strategic move signals the firm’s confidence in the company’s long-term growth potential and overall fundamentals.
Business Overview
Resourceful Automobile Limited is an Indian company focused on the sale and servicing of two-wheeler motorcycles and scooters, operating under the dealership name Sawhney Automobile. The company primarily deals in Yamaha two-wheelers, offering a wide selection that includes commuter bikes, sport bikes, cruisers, and scooters. Its services include vehicle sales, financing solutions, regular maintenance, and repair work, catering to varied customer needs.
Earnings Report
According to its latest financial update, Resourceful Automobile Limited reported consolidated revenue of Rs.8.12 crores in H1 FY25, showing a 23 percent increase from Rs.6.62 crores in H1 FY24. However, the company witnessed a decline in profits, reporting a net loss of Rs.0.68 crores, compared to a net profit of Rs.0.44 crores in the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 11.56 percent and a Return on Equity (ROE) of 5.57 percent. Its Price-to-Earnings (P/E) ratio stands at 8.54, lower than the industry average of 44.76. Furthermore, the company maintains a current ratio of 10.2, a debt-to-equity ratio of 0.35, and an Earnings Per Share (EPS) of Rs.7.33.
Shareholding Pattern
As of March 2025, the shareholding pattern of Resourceful Automobile Ltd shows that promoters hold 61.41 percent stake, while Domestic Institutional Investors hold 0.14 percent, and Retail Investors hold 38.46 percent stake in the company.
Written by – Siddesh S Raskar
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