Resourceful Automobile IPO Review

Resourceful Automobile is actively involved in the dealership of two-wheeler bike of Yamaha, operating under the showroom name “Sawhney Automobiles”. Specializing in the sales and servicing of motorcycles and scooters, with quality products and exceptional customer service, making it a trusted destination for motorcycle enthusiasts.

The foundation of the company is laid by three esteemed promoters, Mr. Rahul Sawhney , Mrs. Bindu Sawhney, and Mrs. Megha Chawla have more than a decade of experience in field of motorbike industry.

Financially, Resourceful Automobile revenue is stable from ₹1,127.26 Lakhs in FY21 to ₹1,250.10 Lakhs in FY22 and further increased to ₹1,938.26 Lakhs in FY23 and currently at ₹1,723.64 Lakhs in 11MFY24. Similarly, EBITDA is almost stable from ₹36.17 Lakhs in FY21 to ₹90.64 Lakhs in FY22 and further to ₹147.78 Lakhs in FY23 and currently at ₹301.56 Lakhs in 11MFY24. The PAT is somewhat stable from ₹0.16 Lakhs in FY21 to ₹28.73 Lakhs in FY22 and further to ₹41.50 Lakhs in FY23 and currently at ₹152.24 Lakhs in 11MFY24. This indicates a somewhat steady financial performance.

For the Resourceful Automobile IPO, the company is issuing shares at a pre-issue EPS of ₹9.33 and a post-issue EPS of ₹5.73. The pre-issue P/E ratio is 12.54x, while the post-issue P/E ratio is 20.41x. The company's ROCE for 11MFY24 is 31.22% and ROE for 11MFY24 is 0.93%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Resourceful Automobile potential listing gains of 40% - 45%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Resourceful Automobile Limited IPO for Listing gain or long term investment purposes.