The stock of Rattanindia Enterprises is continuously moving upwards, which is giving good returns to its investors. In the financial year 2021-22 (FY22) itself, this stock has climbed more than 700 percent so far. From trading at Rs 5.1 on March 31, 2021, to Rs 42.8 at present, it had risen by 739 per cent in the period. In comparison, the benchmark index Nifty has gained nearly 24 per cent in FY22 YTD.
An investment of Rs 1 lakh in the stock on March 31, 2021 would have become Rs 8.39 lakh today. The stock has also gained 590 per cent in the last one year and 529 per cent so far in the calendar year 2021. The stock reached its 52-week high of Rs 70.65 on July 27, 2021 and its 52-week low of Rs 4.48 on April 6, 2021.
Formerly known as Rattanindia Infrastructure, it is engaged in setting up projects for thermal power generation. It has also recently forayed into the electronic vehicles and drone business.
The stock has outperformed its peers in FY22 so far. JSW Energy posted the highest profit margin among other peers with a growth of over 320 per cent in FY22. Meanwhile, Adani Transmission grew by 97 per cent, NTPC by 39 per cent and PowerGrid by 20 per cent.
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However, this income is not commensurate with the stock performance of the firm. The firm reported a net profit of Rs 23 lakh in the June quarter, compared to a profit of Rs 8 lakh in the year-ago period despite the increase in sales. Sales in Q1 came in at Rs 1 crore as against nil in the year-ago quarter.
The firm has seen zero sales from the June 2020 quarter to the December 2020 quarter of the previous financial year. According to the shareholding data for the June 2021 quarter, the four promoters held 74.8 per cent stake or 103 crore shares, while the remaining 25.2 per cent stake or 34.80 crore shares of the company was held by the public.
Recently, the firm entered the drone business with its wholly owned subsidiary- NeoSky India Limited. It will focus on developing drone systems platform and other industrial applications of drones.
It also made a strategic investment in a US-based urban drone logistics platform. According to the firm, drone systems will prove to be extremely transformative by providing cost-effective solutions for developing countries like India. The firm is also involved in the electric vehicle sector through Revolt Motors.
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