Wardwizard Innovations & Mobility Ltd – Joy e-bikes

Recently I came across this company, and here I want share my findings, and want ask for some help to dig deeper.

Current Market Cap – 1488 Cr.
Current price – Rs. 67.
Screener Link - Wardwizard Innovations & Mobility Ltd financial results and price chart - Screener

Wardwizard was a real estate company, but now they had diversified many in businesses, the two main businesses are-

  1. Joy e-bikes – EV business
  2. Vyom Innovations – Electrical appliances

I was more interested in the Joy e-bikes, I found following intrusting information’s from their annual reports, investor presentations, websites and other sources -

  1. They are claiming to have 2nd largest manufacturing plant for e-bikes in India (Don’t know who is largest)
  2. Virtual innauguration was done by hon’ble home minister Shri Amit Shah. (Don’t know about political connections)
  3. Ranvijay Singh is brand ambassador for Joy e-bikes.

To find out more I recently visited their showroom near me in Kalyan, Thane, and luckily, I was able to meet a sales person of Mumbai region, and he gave me following information –

  1. Company is aggressively expanding its dealers network on PAN India level.
  2. Flipkart has ordered 100 e-bikes from Joy e_bikes for testing it, in future they may get more orders (I was unable check if its true of false.)

The showroom owner gave me following information –

  1. His showroom is one of the first to open on PAN – India level in Maharastra, He opened that show room in 2017.
  2. He normally on average sales 12 – 15 e-bikes per month, most of them are low speed e-bikes.
  3. He had seen transformation in the e-bikes made by the company, and was telling me that it is accepting and implementing new innovations faster than competitors.

My views on the products –

  1. There are 5 variants in low speed (< 45 kmph) and 4 in high speed (< 90 kmph).
  2. Low speed bikes don’t require any registrations, licence or helmets.
  3. Bikes sizes are small, its looks like it is made for young populations or ladies.
  4. Built quality was kind of better than I expected.
  5. Power and pickup were as good as a petrol bike, In some cases even better. It feels powerful.

I had studied its annual reports, but as I don’t understand complicated books, I just go through and saw many fields were kept empty and its doesn’t look clean. I will appreciate a help in this space.

EV space is currently changing rapidly, and since the fuel prices are on rise people are accepting EVs, as its running cost is negligible, also some state governments are also incentivising EVs to accelerate it adoption. In state of Gujarat around Rs. 12000 subsidy is given on low-speed e-bikes to students.

The challenge is lack of charging infrastructure and current battery technology, this space is also changing rapidly, and companies should be able to adopt new tech faster to stay afloat.

Disclosure - Not invested - Tracking

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Business is not even one year old. 1500 crore market cap for 50 crore sales. Price to Book more than 50 times! This market has really gone crazy!
Vyom Innovations will definitely fail in this highly competitive space, there are at least 50 indian and foreign brands in these segments.
Joy e-bikes, may not have much competition for now as the space is nascent. As the segment grows, players will come and competition will rise. Difficult to trust this company on its abilities, it may be just playing on the hype.

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