Resourceful Automobile Limited, operating under the brand name “Sawhney Automobile,” has quickly established itself as a prominent player in the two-wheeler dealership market. Originally incorporated as a private limited company in February 2018, it made a strategic transition to a public limited company on October 25, 2023, marking a significant milestone in its growth trajectory.
Core Business
The company specializes in the dealership of Yamaha two-wheelers, offering a diverse range of products including:
- Motorcycles
- Scooters
Resourceful Automobile Limited has positioned itself as a one-stop destination for motorcycle enthusiasts, providing:
- Sales of new vehicles
- Comprehensive servicing
- High-quality customer service
Their product lineup caters to various customer segments, featuring:
- Commuter bikes
- Sport bikes
- Cruisers
- Scooters
This diverse offering ensures that the company can meet a wide array of customer preferences and needs.
Recent Developments
Successful IPO Launch
In August 2024, Resourceful Automobile Limited made headlines with its Initial Public Offering (IPO):
- Aim: To raise ₹11.99 crores
- Share price: ₹117 each
- Subscription rate: 418 times oversubscribed by the third day
This overwhelming response from investors underscores the market’s confidence in the company’s growth potential and business model.
Financial Performance
Despite being a relatively young company, Resourceful Automobile Limited has shown promising financial results:
- Revenue: ₹17 crores (for the 11 months preceding the IPO)
- Profit after tax: ₹1.5 crores (same period)
- Operating profit growth: From ₹11.03 crores in March 2021 to ₹18.83 crores in March 2023
While these figures demonstrate growth, the company faces some financial challenges:
- Low interest coverage ratio
- Dependence on dealership agreements with Yamaha
Future Outlook
Resourceful Automobile Limited has ambitious plans for the future:
- Expansion of operations
- Enhanced market presence, particularly in the Delhi/NCR region
- Utilization of IPO funds for:
– Showroom expansion
– Debt reduction
– Working capital requirements
The company’s commitment to quality service and customer satisfaction positions it well for future growth in the competitive two-wheeler market.
Conclusion
Resourceful Automobile Limited represents an interesting case study of a rapidly growing company in the two-wheeler dealership sector. Its successful IPO and expansion plans indicate a bright future, though investors should remain aware of the challenges inherent in its business model and financial structure. As the company continues to evolve, it will be fascinating to watch how it navigates the competitive landscape of the Indian automotive market.
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