Resourceful Automobile Limited IPO

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Resourceful Automobile Limited is actively engaged in the dealership of Yamaha two-wheeler bikes, operating under the showroom name “Sawhney Automobile.” The company specializes in the sales and servicing of motorcycles and scooters, offering a comprehensive range of products that cater to diverse customer preferences. The inventory includes commuter bikes, sport bikes, cruisers, and scooters, all sourced from Yamaha, a reputable and trusted manufacturer. As an authorized Yamaha dealership, the company ensures that customers have access to the latest models and genuine spare parts.

Beyond sales, Sawhney Automobile provides a full range of customer services, including expert guidance to help customers choose the right bike, arranging test rides, and offering financing options to make purchases more accessible. The dealership is also equipped with an advanced service center staffed by skilled technicians who handle routine maintenance, repairs, and the availability of authentic spare parts. This commitment to quality service and customer satisfaction has made Sawhney Automobile a trusted destination for motorcycle enthusiasts.

Community Engagement and Digital Presence

Resourceful Automobile Limited is deeply involved with the riding community through various events, group rides, and sponsorships, fostering a sense of camaraderie among customers and enthusiasts. The company recognizes the importance of a robust digital presence and maintains a user-friendly website that provides comprehensive information on products, promotions, and a platform for online inquiries. This digital strategy enhances customer engagement and broadens the company’s reach in the market.

Commitment to Integrity and Environmental Responsibility

The company operates with a strong commitment to integrity, adhering to all industry regulations and standards. Transparency in pricing is a key principle, ensuring that customers have a clear understanding of their purchases. Additionally, Resourceful Automobile Limited is committed to environmental responsibility, including compliance with emission standards, promoting fuel-efficient models, and exploring eco-friendly alternatives such as electric two-wheelers.

Future Growth and Innovation

Looking ahead, Resourceful Automobile Limited is focused on continued growth and innovation within the dynamic two-wheeler industry. By staying ahead of market trends, maintaining strong customer relationships, and adapting to emerging technologies, the company aims to solidify its position as a premier destination for all aspects of two-wheeled mobility. With a strong track record of revenue growth and profitability, Resourceful Automobile Limited is well-positioned to achieve its long-term goals and continue delivering value to its customers and stakeholders.

Objects of the Resourceful Automobile Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Carry on the Expansion of the company by opening new showrooms in Delhi/ NCR; ii. Repayment of Debt; iii. To Meet Incremental Working Capital Requirements; and iv. General Corporate Purpose and to meet Public Issue Expenses.
DRHP of Resourceful Automobile Limited IPO
RHP of Resourceful Automobile Limited IPO

Resourceful Automobile Limited IPO Details:

Open Date: Aug 22 2024
Close Date: Aug 26 2024
Total Shares: 1,024,800
Face Value: ₹ 10 Per Equity Share
Issue Size: 11.99 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 117 Per Equity Share
Listing At: BSE SME
Listing Date: Aug 29 2024

Promoters And Management:

Mr. Rahul Sawhney is a dynamic leader with extensive executive experience, known for his diplomatic skills and ability to build strong relationships and consensus. He plays a key role in identifying market opportunities, developing the motorbike showroom business model, and securing exclusive dealership agreements with leading manufacturers. Dedicated to customer satisfaction, he focuses on creating a customer-centric culture, offering exceptional buying experiences, personalized service, and a diverse range of options. Mrs. Megha Chawla is a seasoned professional with a B.Ed. from Guru Gobind Singh Indraprastha University and 4 years of experience in human resources and administrative management, particularly in the automobile sector. As Director of HR and Administration at Resourceful Automobile Limited, she plays a crucial role in developing and implementing HR policies, overseeing recruitment and talent development, fostering a positive work culture, and managing office operations, including facility maintenance and security protocols. Her leadership is instrumental in driving organizational growth through strategic people management. Mrs. Bindu Sawhney plays a key role in acquiring new clients and maintaining long-standing relationships with existing ones. She has extensive experience in developing and executing business strategies, directing business operations, and implementing effective marketing strategies to enhance market relevance and boost sales.

Financials of Resourceful Automobile Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
11M-FY24
Revenue from Operations 1,104 1,232 1,884 1,654
Other Income 23 18 54 70
Total Revenue 1,127 1,250 1,938 1,724
Purchase of Stock in Trade 1,042 1,275 1,696 1,392
Change in Work-In-Progress -71 -249 -97 -123
Employees Benefit Expenses 51 46 33 18
Other Expenses 70 88 158 135
EBITDA 36 91 148 302
OPM (%) 3.21% 7.25% 7.62% 17.50%
Depreciation & Amortisation 21 13 14 6
EBIT 15 78 134 295
Finance Cost 15 40 74 90
PBT 1 39 60 205
Tax 0.7 10 18 53
PAT 0.2 29 42 152
NPM (%) 0.01% 2.30% 2.14% 8.83%
No.of Shares 26.55 26.55 26.55 26.55
EPS 0.006 1.08 1.56 5.73

Comparison With Peers:

Note :- There are no listed companies in India or abroad whose business portfolio is comparable with this business

Recommendation on Resourceful Automobile Limited IPO:

1. Resourceful Automobile Limited is a key player in the motorcycle and scooter dealership segment, focusing on providing a diverse range of two-wheelers to cater to varying customer preferences and needs. As an authorized Yamaha dealership, Sawhney Automobile offers a comprehensive selection of two-wheelers, including commuter bikes, sport bikes, cruisers, and scooters. 2. The company's advanced service center is equipped with skilled technicians who handle routine maintenance and repairs, ensuring that the bikes remain in optimal condition throughout their lifecycle. 3. SWOT Analysis Strengths: i. Experienced Management Team                                     ii. Quality Products iii. Locational Advantage Weaknesses: i. Working Capital Intensive Business                               ii. Limited Geographical Reach iii. Inability to Adopt Technological Advancements Opportunities: i. Growing Domestic Demand                                              ii. Increase in Per Capita Income Threats: i. High Level of Competition                                                 ii. Technological Change 4. Competition Analysis Resourceful Automobile Limited operates in a market characterized by intense competition, with numerous unlisted players in the dealership segment. The primary determinant for clients in choosing products is often pricing. The competitive landscape includes small regional players as well as national and international competitors, adding to the complexity of the market. 5. The Revenue has Increased from Rs.11 Crore in FY21 to Rs.19 Crores in FY23. 6. The EBITDA has Increased from 36 Lakhs in FY21 to 1.4 Crore in FY23. 7. The PAT has Increased from 0.2 Lakhs in FY21 to 42 Lakhs in FY23. 8. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 6.25, 9. Market Capitalization is 31 Crores & P/E is 18.7x based on FY24.

Lead Manager of Resourceful Automobile Limited IPO:

  1. Swastika Investmart Limited

Registrar of Resourceful Automobile Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Resourceful Automobile Limited K-24, Upper Ground, KH No. 107/10 Main Road, Raja puri, West Delhi, New Delhi � 110059 Phone: +91 97737 8496 Email: cs@saiswamimetals.com Website: http://www.sawhneyauto.com/

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