Resourceful Automobile Share Price Target 2025 – Share Market Update
Resourceful Automobile Ltd., operating under the brand name “Sawhney Automobile,” is a two-wheeler dealership company based in New Delhi. Established in 2018, the company specializes in selling and servicing Yamaha motorcycles and scooters, offering a diverse range of models to cater to various customer preferences. As of April 15, 2025, the company’s market capitalization of approximately ₹14 crore. Following its IPO in August 2024, which was priced at ₹117 per share, the stock has experienced a significant decline, reflecting market volatility and investor sentiment. Resourceful Automobile Share Price on BOM as of 17 April 2025 is 52.69 INR.
Current Market Overview Of Resourceful Automobile Share
- Open: 51.02
- High: 52.69
- Low: 51.02
- Mkt cap: 13.99Cr
- P/E ratio: 17.06
- Div yield: N/A
- 52-wk high: 128.00
- 52-wk low: 46.29
Resourceful Automobile Share Price Chart
Shareholding Pattern For Resourceful Automobile
- Promoter: 61.41%
- FII: 0%
- DII: 0.09%
- Public: 38.49%
Resourceful Automobile Share Price Target Tomorrow
| Resourceful Automobile Share Price Target Years | Resourceful Automobile Share Price Target Months | Resourceful Automobile Share Price |
| Resourceful Automobile Share Price Target 2025 | April | ₹60 |
| Resourceful Automobile Share Price Target 2025 | May | ₹70 |
| Resourceful Automobile Share Price Target 2025 | June | ₹80 |
| Resourceful Automobile Share Price Target 2025 | July | ₹90 |
| Resourceful Automobile Share Price Target 2025 | August | ₹100 |
| Resourceful Automobile Share Price Target 2025 | September | ₹110 |
| Resourceful Automobile Share Price Target 2025 | October | ₹120 |
| Resourceful Automobile Share Price Target 2025 | November | ₹130 |
| Resourceful Automobile Share Price Target 2025 | December | ₹140 |
Key Factors Affecting Resourceful Automobile Share Price Growth
Here are six key factors that could influence the share price growth of Resourceful Automobile Ltd:
1. Strong Profit Growth
In the financial year 2024, Resourceful Automobile reported a significant increase in profit after tax, rising from ₹0.42 crore in FY23 to ₹1.95 crore in FY24. This remarkable growth of approximately 369% indicates improved operational efficiency and profitability, which can positively impact investor confidence and share price.
2. High Return on Equity (ROE)
The company has demonstrated a strong return on equity, with a three-year average ROE of 60.4%. A high ROE suggests that the company is effectively utilizing shareholders’ funds to generate profits, which is often viewed favorably by investors.
3. Debt Reduction
Resourceful Automobile has been actively reducing its debt levels. As of September 2024, the company’s debt decreased to ₹3.14 crore from ₹10.51 crore in March 2024. Lower debt levels can lead to reduced interest expenses and improved financial stability, potentially enhancing the company’s attractiveness to investors.
4. Valuation Metrics
The company’s stock is trading at a price-to-earnings (P/E) ratio of 6.82, which is significantly lower than the industry median of 27.09. This lower valuation may indicate that the stock is undervalued compared to its peers, presenting potential growth opportunities for investors.
5. Market Expansion Plans
Resourceful Automobile has plans to expand its presence by opening new showrooms in Delhi and the National Capital Region (NCR). Expanding into new markets can increase the company’s customer base and revenue streams, contributing to share price growth.
6. Industry Growth Potential
The Indian automobile sector, particularly the two-wheeler segment, has been experiencing growth due to increasing demand and urbanization. As a participant in this sector, Resourceful Automobile stands to benefit from the industry’s upward trajectory, which could positively influence its share price.
Risks and Challenges for Resourceful Automobile Share Price
Here are six key risks and challenges that could impact the share price of Resourceful Automobile Ltd:
1. Significant Share Price Decline Post-IPO
After its initial public offering (IPO) in August 2024, which was oversubscribed by over 400 times, Resourceful Automobile’s share price has experienced a substantial decline. As of April 17, 2025, the stock is trading at ₹52.69, down from its issue price of ₹117, marking a decrease of approximately 55%. This sharp drop indicates potential overvaluation during the IPO and may affect investor confidence.
2. Limited Operational Scale
The company operates with a small team of just eight employees and has only two showrooms, both located in New Delhi. This limited operational footprint may constrain revenue growth and scalability, posing challenges to long-term expansion plans.
3. High Valuation Concerns
At the time of its IPO, Resourceful Automobile sought a valuation of ₹31 crore, despite reporting earnings of ₹1.5 crore in the previous year. Such a valuation raised concerns among analysts about the company’s pricing, suggesting that the stock may have been overvalued relative to its financial performance.
4. Dependence on Domestic Market
The company’s operations are currently confined to the domestic market, making it susceptible to local economic fluctuations and market dynamics. Any downturn in the domestic economy or changes in consumer behavior could adversely affect sales and profitability.
5. High Operating Costs
Rising costs associated with operations, including showroom maintenance, staff salaries, and other overheads, can compress profit margins. If not managed effectively, these high operating costs may impact the company’s overall financial health.
6. Regulatory Risks
The Securities and Exchange Board of India (SEBI) has expressed concerns regarding the oversubscription of certain SME IPOs, including Resourceful Automobile’s. Regulatory interventions or increased scrutiny could lead to changes in compliance requirements, affecting the company’s operations and investor sentiment.
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