Rs 1.94 lakh crore drone market projection: This multibagger small-cap company reports a 184 per cent jump in net profit; do you own it?

The stock gave multibagger returns of 550 per cent in 3 years and over 1,100 per cent in 5 years.

RattanIndia Enterprises Ltd is active in a wide range of business activities inter alia from software, legal, financial, human resources, and consultancy, to supply of manpower (skilled, semi-skilled and unskilled), software designing and development, design development, and implementation of payment systems and gateways, etc.

 The company announced its Quarterly Results ended June 30, 2023. Here are the details:

Quarterly Updates: The net sales increased by 83.85 per cent to Rs 1,267.80 crore, operating profit increased by 199 per cent to Rs 206.22 crore and net profit increased by 184 per cent to Rs 178.13 crore in Q1FY24 compared to Q1FY23.

Subsidiary Companies update

1) Cocoblu is focused on helping brands succeed in e-commerce marketplaces. The company has tied up with 135+ Amazon fulfilment centres and served 19,000+ PIN codes across India. It has over 2 crore + orders fulfilled, 880+ active vendors, and a 4.5-star review rating on Amazon. Cocoblu uses best-of-breed tech tools and big data to manage its operations.

2) India's top electric motorcycle company, Revolt Motors, has been acquired by REL in Jan 2023. It is now selling on leading e-commerce platforms and expanding its dealer network while sharpening its focus on customer-centricity.

3) NEOSKY is a licenced company for drone training and manufacturing in India. The company received a BIS certificate for a drone battery. The Indian drone market is expected to grow significantly in the coming years, with the government aiming to make India a global hub for drone manufacturing and services. The drone market is projected to be Rs 1.66 lakh crore by FY2028 and including exports it increases to 1.94 lakh crore by FY28.

4) Neo Brands, House of Brands D2C expanded its product line and launched Revolt merchandise, while selling apparel, shoes and handbags on Amazon US, Canada and Mexico.

5) REL subsidiary Neotec Insurance Broker started an insurance sales business, partnered with multiple insurers and lenders, and disbursed loans worth Rs 418 crore.

On Thursday, shares of REL plunged 7.71 per cent to Rs 50.51 per share with an intraday high of Rs 55.70 and an intraday low of Rs 49.77 and saw a spurt in volume by more than 1.73 times on BSE.

The company has a market cap of over Rs 7,000 crore with a 3-year CAGR of 87 per cent. The stock gave multibagger returns of 550 per cent in 3 years and over 1,100 per cent in 5 years. Investors should keep an eye on this Small-Cap company.

Disclaimer: The article is for informational purposes only and not investment advice.