Resourceful Automobile Limited

BSE: RAL · Auto Dealer

52W Range₹31 ₹72

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Snapshot

Unlock Resourceful Automobile Limited's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Resourceful Automobile Limited, operating as Sawasdeee Motors, is a New Delhi-based automotive dealership specialising in the retail of Yamaha motorcycles and scooters. The company operates two showrooms and a service centre to facilitate the distribution of two-wheelers, spare parts, and accessories.

Business Model

The company employs a 3S business model, generating revenue through the integrated sale of vehicles, provision of maintenance services, and the retail of genuine spare parts.

  • Operational footprint:2 showrooms and 1 service centre

Management Commentary

Following its August 2024 IPO on the BSE SME platform, management has focused on capitalising on the strong investor interest in small-cap automotive retail stocks.

Growth Outlook

Growth is expected to be driven by the expansion of its retail footprint and sustained demand for two-wheelers in the Indian market.

  • IPO Status:Oversubscribed in August 2024

Key Risks

  • Concentration Risk. The company is heavily reliant on a single brand partnership with Yamaha, making it vulnerable to changes in the manufacturer's strategy or product performance.
  • Operational Scale. As a small-cap entity with a limited number of showrooms, the company lacks the geographic diversification to mitigate localised economic downturns.
  • Market Competition. The automotive retail sector in India is highly competitive, with significant pressure on margins from both organised and unorganised players.
  • Regulatory Risk. Changes in automotive emission standards or government policies regarding two-wheeler financing and ownership can adversely impact sales volumes.

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Peers · Auto Dealer

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Resourceful Automobile LimitedRAL
₹11 Cr11.0%-37.9%
Landmark CarsLANDMARK
₹2,087 Cr46.398.7320.7%5.7%7.9%14.3%-16.5%
Popular Vehicles and Services LimitedPVSL
₹727 Cr-300.325.7425.2%3.4%-0.4%8.8%-7.1%

As of Mar 2022

Financials