Small and mid-cap stocks this year so far have beaten large-cap counters by delivering stellar returns while also setting new record highs. RattanIndia Enterprises was one such stock that rewarded its shareholders with staggering returns.
From its low point of ₹39.25 in June 2023, the company's shares surged by an astounding 75% to reach a new 52-week high of ₹68.7 during Tuesday's trading session. In August alone, the stock skyrocketed 52%.
Impressively, from its May 2020 low of ₹1.50, the stock has witnessed an extraordinary surge of 4,263% to date. Over the past three calendar years, the stock has delivered multi-bagger returns in two, with a return of 261% in CY20 and a return of 605.95% in the subsequent year.
RattanIndia Enterprises, the flagship company of Rattanindia Group, is engaged in new-age businesses including e-commerce (Cocoblu Retail), electric vehicles (Revolt Motors), fintech (Wefin), fashion brands (Neobrands), and drones (Neosky).
The company completed the acquisition of electric motorcycle market leader Revolt Motors in January this year. Revolt Motors is the highest-selling electric bike in the country, with its manufacturing facility in Manesar, Haryana. With this acquisition, RattanIndia Enterprises seeks to significantly scale up Revolt’s growth and make it the largest EV two-wheeler company in the country.
Revolt Motors flagship model RV400 has been witnessing robust demand and is by far the most technologically advanced bike in the world, the company said.
India predominantly relies on two-wheelers for transportation, with motorcycles leading the way. Cost-conscious Indian bike customers see value in Revolt bikes, which offer a huge cost advantage compared to petrol bikes, with the running cost being 1/10th of that of a petrol bike, the company added.
Electric two-wheeler sales in India reached to 7,26,841 units (Y-o-Y 185%) in FY2023. The Indian EV market, valued at $3 billion in 2022, is expected to grow to $114 billion by 2029, at a CAGR of 67%.
Furthermore, in the Union Budget 2023, import duties on specified capital goods and machinery required for manufacturing lithium-ion cells used in EV batteries were reduced to nil. This reduction is expected to contribute to cost savings in battery production in the near future.
Within just two months of acquiring Revolt, RattanIndia Enterprises significantly scaled up production. Between February 20 and March 31, 2023, Revolt Motors set a new production record by manufacturing 6,500 bikes in a span of 40 days, surpassing its previous monthly average of 1,500 bikes. On August 23, Revolt Motors celebrated its 6th anniversary by launching a limited-edition stealth black RV400 electric motorcycle, according to company's regulatory filing.
Additionally, the company's subsidiary, Neosky, obtained a Remote Pilot Training Organisation (RPTO) licence from the Directorate General of Civil Aviation (DGCA) in May. During the same month, Throttle Aerospace Systems, a subsidiary of Neosky, launched a new cargo drone L-40.
In terms of financial performance, during the quarter ending in June, the company reported a net profit of ₹178 crore, a significant improvement compared to the net loss of ₹216 crore in the same period the previous year.
Revenue from operations for the quarter reached ₹1,472 crore, a remarkable 113% increase compared to the ₹692.2 crore generated in Q1 FY23. Notably, the company's e-commerce arm achieved a revenue of ₹1,212 crore in Q1FY24, reflecting a 76% increase compared to Q1FY23.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie. We advise investors to check with certified experts before taking any investment decisions.
