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RattanIndia Ent shares jump 18% after acquiring Revolt Motors; here's what analysts say

RattanIndia Ent shares jump 18% after acquiring Revolt Motors; here's what analysts say

A total of 23.26 lakh shares changed hands today, which was more than 14 times compared to RattanIndia Enterprises' two-week average volume of 1.58 lakh.

RattanIndia Ent shares jump 18% after acquiring Revolt Motors; here's what analysts say RattanIndia Ent shares jump 18% after acquiring Revolt Motors; here's what analysts say

Shares of RattanIndia Enterprises jumped in Monday's trade after the acquisition of electric motorcycles maker Revolt Motors amid heavy volumes. The stock surged 18.45 per cent to hit a day high of Rs 50.40 over its previous close of Rs 42.55. "RattanIndia Enterprises has completed the acquisition of 100 per cent shareholding in the electric motorcycles market leader Revolt Motors," the company said in a statement said.

Support on the counter could be seen around Rs 45, followed by Rs 39-40 levels, an analyst said.

A total of 23.26 lakh shares changed hands today, which was more than 14 times compared to RattanIndia Enterprises' two-week average volume of 1.58 lakh. Turnover on the counter stood at Rs 11.24 crore, commanding a market capitalisation (m-cap) of Rs 6,786.94 crore.

At today's high level of Rs Rs 50.40, the stock traded 65.24 per cent higher than its 52-week low of Rs 30.50, hit on May 12 last year. The multibagger stock has zoomed 608.03 per cent in five years.

Technical analysts said that resistance on the counter could be seen above Rs 50 level.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "RattanIndia Enterprises has seen a massive spurt on the back of robust volumes which placed it above all the major moving averages on the daily chart. Technically, the stock is still hovering in a sideways pattern, but with the recent development, the support base has slightly moved upwards to the Rs 45-odd zone, followed by the sacrosanct support of Rs 39-40. On the higher end, the sloping trend on the weekly chart is expected to act as the sturdy wall placed around the Rs 55 level. Hence, we advocate keeping a close tab on the mentioned levels, as any breakthrough on either side could trigger a fresh round of movement in the counter."

AR Ramachandran from Tips2trades said, "RattanIndia Enterprises has strong resistance at Rs 50.6. A daily close above this level could lead to targets of Rs 54-58 in the near term. Support will be at Rs 44.5."

The stock was last seen trading higher than 5-day, 20-, 50-, 100- and 200-day moving averages.

RattanIndia Enterprises has a one-year beta of 1.44, suggesting high volatility on the counter.

The counter's 14-day relative strength index (RSI) came at 68.16. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 91.85.

Revolt Motors, in an exchange filing, said it is the highest-selling electric bike in the country with its manufacturing facility in Manesar, Haryana. "Revolt Motors has expanded its footprint pan-India with 30 dealerships spread across the country. With this 100 per cent acquisition of Revolt Motors, RattanIndia Enterprises seeks to significantly scale up Revolt's growth and make it the largest EV two-wheeler company in the country," it added.

Anjali Rattan, Business Chairperson at RattanIndia Enterprises, said, "The country needs environmentally sustainable mobility solutions and Revolt will surely be a leader in this transformation. We are very excited and fully geared up to make Revolt the largest EV motorcycle company in the country."

In terms of EV performance, RattanIndia said that Revolt EVs are eco-friendly and 3.24kWh lithium-ion batteries not only reduce emissions but also enable an uncompromised performance with top speeds of 85 km per hour. The batteries with a single charge of 4 hours have a range of 150 km, it mentioned.

Meanwhile, Indian equity benchmarks slipped into the red, dragged by metals and financials.

Also read: Sensex, Nifty slip into red: Gland Pharma, Krsnaa Diagnostics & 38 others hit 52-week low

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Published on: Jan 16, 2023, 3:16 PM IST
Posted by: Tarab Zaidi, Jan 16, 2023, 3:05 PM IST