In an ambitious growth trajectory, the leading refurbished and excess inventory management company has set its sights on achieving substantial revenue targets of INR 400-500 crore by fiscal year 2027. With projected profit after tax margins of 10-15%, the firm continues to strengthen its position in India’s circular economy landscape.
Share Price Movement
The share price of Rockingdeals Circular Economy Limited went down 2.37 percent to Rs. 589.95 per share on Monday, an increase from its previous close of Rs. 591.85 per share. The market capitalisation now stands at approximately Rs. 333 crore as of January 14, 2025.
What happened?
The company has given guidance that it expects FY25 PAT to grow by 80-100%. The company opened new stores, signed with Livpure, and completed integration of franchise and retail operations. For 4QFY25, it plans to open 3+ franchise stores, expand in the East Zone, and launch operations in Dubai.
The company aims to obtain an e-waste recycling license by FY25’s end. The preferential issue received a positive investor response, supporting future growth. RDCEL targets INR 400-500 crore revenue by FY27, with a PAT margin of 10-15%.Rocking Deals (Up 2.05%)
Financial Highlights
The company has shown remarkable growth in 2024, with revenue reaching Rs. 49.56 Cr, a 230% increase from Rs. 15.01 Cr in 2023. Profit also surged by 238%, rising from Rs. 1.54 Cr in 2023 to Rs. 5.21 Cr in 2024, highlighting strong financial performance.
The company has demonstrated exceptional performance across multiple timeframes, with trailing twelve months (TTM) sales growth of 230% and profit growth of 238%. Over a 3-year period, they’ve achieved 67% sales growth and a remarkable 374% profit growth.
Return on Equity (ROE) metrics are particularly strong 75% in the last year and 37% over a 3-year period. These numbers suggest a company that’s not only growing rapidly but also doing so profitably, with strong returns for shareholders.
The average price-to-earnings (P/E) ratio in the trading industry is 33.68, which is less than Rockingdeals Circular Economy’s current P/E ratio of 48.82.
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Market Outlook
India’s retail industry shows strong growth, driven by increasing purchasing power and demand. With nearly 60 new shopping malls opening in 2023–25, the sector continues to expand, contributing over 10% to India’s GDP. Innovation in financing, such as easy credit options, is helping consumers access durable products.
While e-commerce funding decreased in 2023, global investors continue to show interest in India’s retail sector, highlighting its promising future. India’s retail market remains the fourth largest globally, offering ample opportunities for growth.
Shareholding Pattern
As of the September 2024 shareholding pattern, Rockingdeals Circular Economy Limited is primarily held by the promoters at 65 percent, foreign institutional investors hold 0.03 percent, and the public with 34.79 percent.
About Company
Rockingdeals Circular Economy Limited, founded in 2002, specialises in bulk trading of excess inventory and re-commerce items, focusing on sustainable practices by reusing and recycling products.
They offer a wide range of discounted products, including electronics, fashion, and lifestyle items from top brands like Zara, Nike, and Reebok. Rockingdeals is a leading player in India’s re-commerce market.
Written By Fazal Ul Vahab C H
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