Wardwizard Innovations & Mobility Ltd: Transforming India\'s Commute L... Wardwizard Innovations & Mobility Ltd: Transforming India\'s Commute Landscape Read more

Summary

In India's electric vehicle (EV) realm, Wardwizard Innovations & Mobility Ltd. emerges as a market leader with a ₹1,495 Cr market cap, marking a tenfold surge from pandemic lows. Financially robust, the company boasts a diverse EV portfolio, including two-wheelers, motorcycles, and three-wheelers. Recent launches, E-Cart and E-Loader, highlight a commitment to innovation. With 99% of revenue sourced domestically, Wardwizard's strong brand landscape, expansive network, manufacturing prowess, strategic collaborations, and celebrity brand ambassadors position it for a pivotal role in India's burgeoning EV landscape. The company's positive Q2FY24 performance, planned capex, and government support underscore a promising future.

Riding the Electric Wave

In the vibrant landscape of India's electric vehicle (EV) industry, Wardwizard Innovations & Mobility Ltd stands out as a pioneering force. As a small-cap leader with a market capitalization of ₹1,495 Cr, the company has undergone a remarkable growth trajectory, witnessing a tenfold increase from the lows of the COVID-19 pandemic.

Wardwizard Innovations & Mobility Limited focuses to provide clean and greener alternatives to current ways of life through two star products, Joy E-Bikes and Vyom Innovations.

Wardwizard Innovations & Mobility Limited (Wardwizard, The Company) is a prominent manufacturer of Electric Two-wheeler and Three-wheeler Vehicles in India,operating under the brand name Joy e-bike. The Company has one of the broadest product lines of any EV scooters and motorcycle company With a focus on sustainable and eco-friendly transportation solutions, The Company is dedicated to producing high-quality electric vehicles that are both affordable and efficient.

Journey

Financial Snapshot

Wardwizard boasts robust financial indicators:
- Current Price: ₹57.4
- P/E Ratio: 165
- Return on Capital Employed (ROCE): 17.7%
- Operating Profit Margin (OPM): 10.7%
- 3 Years Sales Growth: 1,340%

Diverse Product Portfolio

The company's product portfolio caters to diverse segments:
- Low-Speed E-Scooters: Wolf, Gen Next Nanu, Glob
- High-Speed E-Scooters: E-Monster, Beast Thunderbolt, Hurricane
- Electric Motorcycles: Wolf +, Wolf Eco, Gen Next Nanu EC0, Delgo
- Three-Wheelers: E-Rik

Recent Launches

Wardwizard is set to redefine the market with the introduction of E-Cart and E-Loader, signaling its commitment to innovation.

Revenue Dynamics

The revenue mix, dominated by Joye-bike (99%) and Vyom (~1%), reflects a strategic focus on the Indian market. Geographically, 99.56% of revenue is generated within India, underscoring its strong domestic presence.

Brand Landscape

The brand landscape includes:
- Joy E-Bike: Leading the two-wheeler segment.
- Joy E-RIK: Specializing in three-wheeler products.
- Vyom: Expanding into consumer appliances.

Manufacturing Excellence

Wardwizard's manufacturing unit in Vadodara, Gujarat, spans 70,000 sq. ft for two-wheelers and 40,000 sq. ft for three-wheelers. The annual production capacity for two-wheelers is an impressive 120,000 units, attesting to its commitment to scale.

Expansive Network

With a dealership network of 750+ dealers and 25+ owned showrooms, Wardwizard has established its footprint in 400 cities across 19+ states and union territories. The brand is not just about products; it's about creating an accessible and widespread EV ecosystem.

Ancillary Cluster & Collaborations

The company's forward-looking approach is evident in its collaboration with the Gujarat Government for a ₹2000 Cr investment in EV R&D. Additionally, the strategic partnership with Bee'ah Group in Sharjah, UAE, marks a significant move towards international collaboration for EV manufacturing.

Marketing & Brand Ambassadors

Wardwizard has strategically aligned itself with popular platforms like The Kapil Sharma Show and Aajtak for brand promotion. The brand ambassadors Saif Ali Khan and Kareena Kapoor Khan further strengthen its market presence.

Q2FY24 Financial Performance

The financial performance in Q2FY24 reflects a positive trend:
- Revenue: ₹45.11 Cr (⬆️19% QOQ, ⬇️17% YOY)
- Operating Profit: ₹5.84 Cr (⬆️23% QOQ, ⬆️30% YOY)
- PAT: ₹2.42 Cr (⬆️38% QOQ, ⬇️3% YOY)

EBITDA Margin is improving year on year basis for the company and sales is continuously increasing. PAT increased from 1.8 Cr to 9.47 which is 5x in 2 years. company is increasing the capacity day by day, leading to economy of scale and margins will further improve. 

Strategic Capex & Shareholding

The company plans a capex of ₹100-125 Cr for FY24, with a significant focus on investing ₹80-85 Cr in the battery plant. In terms of shareholding, promoters hold a substantial 70.46%, with a negligible presence from FIIs.

Industry Dynamics & Government Support

In the broader context of India's EV landscape, the company is positioned to capitalize on the growing industry:
- FDI Inflow: $34.74 billion (2000-2023)
- Government Support: Up to ₹362 Cr per gigawatt under the PLI Scheme.

Future Vision

As Wardwizard looks to the future, the company aims to promote high-performing taluka dealers to District Distributors, signaling a decentralized expansion strategy. With plans to expand its reach across the nation, Wardwizard is poised to play a pivotal role in shaping India's electric mobility landscape.

Analysis

Wardwizard Innovations & Mobility Ltd has demonstrated robust growth in India's electric vehicle (EV) industry. With a market capitalization of ₹1,495 Cr, the company has seen a tenfold increase since the lows of the COVID-19 pandemic. Key financial indicators, including a P/E ratio of 165, ROCE of 17.7%, and an OPM of 10.7%, reflect the company's financial stability and growth potential.

Wardwizard's product portfolio, featuring low-speed and high-speed E-Scooters, electric motorcycles, and three-wheelers, caters to diverse segments. Recent launches of E-Cart and E-Loader highlight the company's commitment to innovation. The revenue mix, dominated by Joy E-Bike (99%), underscores a strategic focus on the Indian market, with 99.56% of revenue generated domestically.

Manufacturing excellence is evident in Wardwizard's Vadodara unit, boasting a substantial production capacity and a commitment to scale. The company's expansive network of 750+ dealers and 25+ showrooms across 400 cities establishes a widespread EV ecosystem.

Strategic collaborations with the Gujarat Government and Bee'ah Group in Sharjah, UAE, showcase Wardwizard's forward-looking approach and international ambitions. Marketing initiatives, including partnerships with popular platforms and brand ambassadors Saif Ali Khan and Kareena Kapoor Khan, strengthen its market presence.

Q2FY24 financial performance indicates a positive trend, with increased revenue, operating profit, and profit after tax. The company plans a capex of ₹100-125 Cr for FY24, focusing on investing ₹80-85 Cr in the battery plant. Wardwizard's vision of decentralized expansion aligns with its future plans to play a pivotal role in India's electric mobility landscape.

Supported by substantial FDI inflow and government initiatives, including up to ₹362 Cr per gigawatt under the PLI Scheme, Wardwizard is well-positioned to capitalize on the growing EV industry in India. Overall, the company's journey reflects impressive growth, strategic initiatives, and a commitment to shaping the future of electric mobility in the country.