We Ran a Stock Scan for Earnings Growth, and Rockingdeals Circular Economy Passed With Ease
Business and Industry Overview:
Rockingdeals Circular Economy Limited (RDCEL) is an Indian company that buys and sells extra and returned products in bulk. It helps businesses get good-quality products at lower prices. The company offers many products like home appliances, clothes, kitchen items, mobile accessories, and shoes. These products come from well-known brands like Samsung, LG, Nike, JBL, and OnePlus. RDCEL gives unsold and returned products a second life by reselling them instead of letting them go to waste. This supports a circular economy where products are reused instead of thrown away. The company started in 2002 as ‘Technix Electronics Private Limited.’ In July 2023, it changed its name to ‘Technix Electronics Limited’ after becoming a public company. The name changed again in August 2023 to ‘Rockingdeals Circular Economy Limited’ to reflect its focus on the re-commerce industry. RDCEL mainly sells products to businesses instead of individual customers. It buys extra stock from dealers and sells it in bulk to other companies. Some of its biggest customers include Jindal Mega Mart, Brand Wala, and VLE Bazaar Private Limited.
The re-commerce industry is growing because people want affordable products and companies want to reduce waste. Instead of throwing away old, extra, or slightly used products, businesses repair and resell them. This helps people buy good-quality products at lower prices. Re-commerce includes many types of products like mobile phones, laptops, TVs, furniture, clothing, shoes, home appliances, and even vehicles. Many well-known brands, such as Samsung, Apple, Nike, and LG, are part of this industry.
Technology is changing fast, and new products come out every year. People upgrade their gadgets often, but old devices still work well. Instead of letting them go to waste, re-commerce companies collect, test, repair, and resell them. Many businesses also sell extra or open-box products, which are unused but cannot be sold as brand-new. Online platforms and stores make it easy for customers to buy and sell these products. This industry also helps the environment by reducing waste, reusing materials, and lowering pollution caused by making new products.
Consumers and companies are now choosing re-commerce because it saves money and supports sustainability. People can get high-quality items at lower prices, while businesses can clear their extra stock and make profits. The demand for refurbished and second-hand products is increasing, especially for smartphones, laptops, furniture, and home appliances. Reports suggest that the re-commerce market in India will continue to grow quickly in the coming years. As more people become aware of the benefits, re-commerce will become a major part of the economy, making products more affordable and reducing waste at the same time.
Rockingdeals Circular Economy Ltd. is a strong player in the re-commerce industry. It buys extra, open-box, and refurbished products in bulk and sells them to businesses. The company deals in many products like mobile phones, laptops, home appliances, clothes, and footwear from big brands like Samsung, LG, Sony, Nike, and Reebok. It has been in this business since 2005, giving it experience and strong market connections. Unlike many companies that sell directly to customers, Rockingdeals supplies products to retailers and businesses, making it a major B2B player. The company offers products at lower prices, which helps businesses save money. It also supports sustainability by reducing waste and extending the life of products. The re-commerce market in India is growing, and Rockingdeals is in a good position to take advantage of this trend. However, it faces competition from companies selling refurbished products online. Despite this, its strong supply chain and partnerships give it a competitive edge. As more people and businesses look for affordable and eco-friendly products, Rockingdeals can grow even further.
Latest Stock News:
Rockingdeals Circular Economy is doing well in the stock market because it is making both revenue and profit. Unlike some companies that only have a good story but no earnings, Rockingdeals is growing. In just one year, its earnings per share (EPS) jumped by 55%, from ₹7.96 to ₹12.31. This means the company is making more money for each share that investors own.
The company’s profit margins have also improved, going from 15% to 18%. This shows that it is managing its business better and making more profit from its sales. Additionally, revenue is increasing, which is a positive sign for the company’s future.
Another good thing is that the company’s insiders (like its founders and top executives) own 65% of the shares. This means they have a strong personal interest in making sure the company continues to succeed. Since they have invested a lot of their own money, they are likely to work hard to keep the business growing.
Because of its strong earnings growth and high insider ownership, Rockingdeals is a company that investors should keep an eye on. However, like any stock, it also has some risks, so investors should do their research before making any decisions.
RDCEL is growing fast and making more money every year. In 2023, it earned ₹495.60 million, which was a huge increase compared to the previous year. The company launched its Initial Public Offering (IPO) in November 2023 to raise money for business expansion. It sold 1.5 million shares to investors, and the stock price is now ₹604.30 per share. The company plans to use the raised funds to grow its business, improve marketing, and expand its customer reach.
Potentials:
Rockingdeals Circular Economy Ltd. is growing and reaching more customers in India. It sells refurbished and extra stock products like electronics, fashion, and home appliances at lower prices. This helps people save money and also reduces waste. The company is selling these products on popular online platforms like Amazon and Flipkart so that more people can buy them easily.
To make deliveries faster, Rockingdeals is opening a new warehouse in Guwahati. This will help the company store more products and deliver them quickly to customers in Northeast India. Right now, it has three warehouses in Faridabad, and with this new one, its total space will be 60,000 sq. ft.
Rockingdeals also makes sure that all products are checked and in good condition before selling. It wants customers to trust its products, so it focuses on quality.
To support its growth, the company is raising money by selling 15,00,000 shares. This money will help Rockingdeals buy more stock, open more warehouses, and improve its services. With these steps, the company aims to become a top player in the re-commerce market and provide affordable products to more people.
Analyst Insights:
- Market capitalisation: ₹ 176 Cr.
- Current Price: ₹ 311
- 52-Week High/Low:₹ 688 / 307
- Stock P/E: 25.2
- Dividend Yield: 0.00 %
- Return on Capital Employed (ROCE): 32.7 %
- Return on Equity: 24.7 %
Rockingdeals Circular Economy Ltd is growing fast. Its revenue increased from ₹15.01 Cr in FY23 to ₹49.56 Cr in FY24, a growth of 230%. Profit also went up by 258%, showing the company is making more money. The return on capital (ROCE) is 32.7%, which means the company is using its money well. The company is also collecting money from customers faster, as debtor days dropped from 60.9 to 43.3.
However, there are some risks. The company had a negative cash flow of -₹15.34 Cr, meaning it spent more cash than it earned. The stock price has fallen 12% this year and is now close to its lowest price of ₹307. The stock’s P/E ratio is 25.2, which is lower than competitors like Vishal Mega Mart (100.49) and Honasa Consumer (104.91). This means it may be undervalued. The stock is good for long-term investment. Buy near ₹300-₹310 for future gains. Short-term traders should wait for a rise above ₹350 before buying.
