1 Electric Vehicle Sector Debt Free Penny Stock To Keep A Watch On

While penny stocks are in fad today because amid inflation and other financial constraints most people are on the run to make quick gains, nonetheless these should be strictly avoided by conservative investors who cannot afford losing money. Further while some of the fundamentally sound- not so popular penny scrips do have the potential to make good returns, in a scenario when they see decline in stock price they tend to hit lower circuits on a continuous basis.

Nevertheless, here we will discuss one such Electric vehicle penny stock that is also debt free which one can keep an eye on:

Wardwizard Innovations and Mobility Ltd. is an EV stock that has lately forayed into the segment. The entity is the first-ever company under the electric vehicle category with the core business of EV manufacturing to be listed on the BSE.

About Wardwizard Innovations and Mobility

Vadodara-Gujarat based company is engaged in E-Vehicles Manufacturing & consumer durable/electrical items. As part of the country's Make In India initiative, the company has launched its own first-ever OEM plant in Vadodara.

Company’s aggressive plans to capture 25% EV market share in India

Through its flagship brand Joy e-Bike, the company is aggressively heading on to offer sustainable mobility solutions. Notably, for EV manufacturing, companies' into the space get subsidy both from the centre and state, likewise, Wardwizard last year signed a MoU with the Gujarat government to invest Rs. 500 crore. The company would invest Rs. 500 crore on R&D of electric 2&3 wheelers, setting up the motor assembly at Vadodara's facility, and developing ancillaries to manufacture raw materials.

Other than 4 new high speed bikes in its range, the company also plans to launch a budget electric car by 2025 and is also working on the three-wheeler EV space.

Company’s financials, stock price trajectory and fundamentals

Going by the last 1 year results, the company's income from operations have zoomed significantly to Rs. 58.11 crore in the December quarter of Fy22 as against Rs. 10.68 crore in the same quarter a year ago. Net profit at the company has also been rising consistently and for the December period stood at Rs. 2.87 crore.

The stock's lifetime low/ high price are 4.31 - 100.57 respectively, while its 52-week low and high are 59.67 - 100.57. In the afternoon trade on March 28, 2022, the stock was trading with a volume of 411319. The stock at around 1:29 pm on March 28 traded with a loss of over 2% at Rs. 74.2 apiece on the BSE.

Fundamentally, the stock is in a good position with debt being zero. Nonetheless, to expand its capacity, the company plans on raising funds from the market. The returns on the stock are quite decent with RoE at 11.3% and RoCE of 12.7%. However on the valuations front, the stock is expensive with earnings not increasing in line with the stock price.

Conclusion

So, the company here is discussed owing to its good line of business and the way it is progressing and revolutionizing the green mobility space. Though at the current juncture the company's net profits are very low but if it sustains and increases its profits going forward this stock can surely be among the multibaggers in the long run.

Disclaimer

The stock is listed out here just to gain insights into the company's business and how it has been faring. Nevertheless, the analysis should not be construed as investment advice into the stock.