The shares of this smallcap stock surged around 7 percent in Tuesday’s trading session after receiving approval for an EV subsidy from the Government of India. In one year, the stock has delivered around 100 percent returns to its shareholders.
Price Movement:
With a market capitalization of Rs. 11,355 crores, the shares of RattanIndia Enterprises Ltd started Tuesday’s trading session on a flatter note at Rs. 77.95 compared to its previous close of Rs. 76.52. During the trading session, the shares hit a high of Rs. 82.35, gaining around 7 percent and closed the day at Rs. 79 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that received official approval from the Ministry of Heavy Industries to be eligible for the Government of India’s EV subsidy schemes.
Furthermore, the company mentioned that this is a significant step for the company since it not only makes Revolt Motors eligible for the current ongoing Electric Mobility Promotion Scheme (EMPS) 2024 subsidy for electric two-wheelers but also the subsequent FAME III subsidy scheme which is expected to follow EMPS.
As part of the current EMPS 2024 subsidy scheme, the company’s Revolt Motors will be eligible for Rs. 10,000 per motorcycle as a subsidy from the Government of India.
This will make the company’s motorcycles competitively priced in the market further boosting both the sales and profitability of the company in a big way.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 37 percent from Rs. 4,124 crores during FY22-23 to Rs. 5,610 crores in FY23-24. In addition, the net profits showcased a transition from a net loss of Rs. 286 crores to a net profit of Rs. 424 crores during the same period.
Expansion Plans:
RattanIndia aims to significantly increase Revolt’s dealership network from 30 to nearly 500 within a year, with aspirations of exceeding 1,000 dealerships in the next two to three years. This expansion is part of a broader strategy to penetrate the Indian market more effectively, particularly in urban areas.
Additionally, the company is also exploring opportunities to enter international markets, with interest from countries such as Mexico, Bangladesh, and Nepal.
Drone Segment:
RattanIndia Enterprises, through its wholly-owned subsidiary NeoSky India, had forayed into the drone business in India. NeoSky covers multiple segments and manufactures defence drones, consumer drones, and drones for industry applications. The company expects the delivery drone market to reach Rs. 250,000 crore by 2031.
Company Profile:
RattanIndia Enterprises Limited is the flagship company of Rattanindia Group. RattanIndia Enterprises Limited comprises tech-focussed new age businesses including e-commerce, electric vehicles, and drones.
Written By Vaibhav Patil
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