Why Wardwizard Innovations shares jumped 13% as it signed MoU with Gujarat government

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Wardwizard Innovations shares soar 13% as it signs MoU with Gujarat government for EV cluster



Wardwizard Innovations & Mobility Ltd, the maker of Joy e-bike brand, saw its shares surge 13% on Thursday, as it announced a Rs 2,000 crore investment plan to develop an electric vehicle ancillary cluster in Gujarat. The company signed a memorandum of understanding (MoU) with the Gujarat government at the Vibrant Gujarat Global Summit 2024 in Gandhinagar.

What is Wardwizard Innovations & Mobility Ltd?

Wardwizard Innovations & Mobility Ltd is an electric vehicle company that offers a range of e-bikes and e-scooters under the Joy e-bike brand. The company was founded in 2011 and is headquartered in Vadodara, Gujarat. The company claims to have sold over 25,000 e-bikes in India and has a network of over 300 dealers across the country. The company also exports its products to Nepal, Bangladesh, Sri Lanka, and Africa.

What is the MoU with the Gujarat government by Wardwizard ?

The MoU with the Gujarat government is aimed at fostering the growth of the electric vehicle industry and aligning with the government’s vision of enhancing green mobility within the state. Under the agreement, Wardwizard will invest Rs 2,000 crore in various critical areas, such as:

  • Research and development of electric 2 & 3 wheelers
  • Establishment of motor assembly at Vadodara’s facility
  • Li-ion cell production
  • Development of ancillaries for raw material manufacturing
The company expects to generate 5,000 employment opportunities through this investment and also contribute to the ‘Make-in-India’ initiative by reducing import dependencies and boosting local manufacturing.

How did the market react to the news of Wardwizard?

The market reacted positively to the news, as Wardwizard’s shares jumped 13.18% to Rs 43 on BSE, while the benchmark Sensex fell 901 points to close at 63,148. The stock also outperformed its peers in the electric vehicle segment, such as Hero Electric, Okinawa Autotech, and Ampere Vehicles.

The stock has gained 38% year-to-date and 22.37% in the last one year, reflecting the growing demand for electric vehicles in India. The stock is trading above its 5 day, 10 day, 20 day, 30 day, and 50 day moving averages, but below its 100 day, 150 day, and 200 day moving averages. The stock has a low volatility of 0.7 and a relative strength index (RSI) of 37.1.

The stock hit a 52-week high of Rs 78 on December 6, 2023 and a 52-week low of Rs 33.21 on July 13, 2023.

What are the future prospects for Wardwizard?

Wardwizard has a bright future ahead, as it plans to expand its product portfolio and market presence in the electric vehicle space. The company recently launched four new models of e-bikes: Skyline X1 Pro, Skyline X2 Pro, Skyline X3 Pro, and Skyline X4 Pro. These models come with features such as digital display, anti-theft alarm system, reverse assist mode, cruise control mode, and smart key.

The company also aims to increase its production capacity from the current 1 lakh units per annum to 5 lakh units per annum by March 2024. The company also plans to enter new segments such as electric three-wheelers and electric four-wheelers in the near future.

The company’s chairman and managing director Yatin Sanjay Gupte said that the MoU with the Gujarat government is a significant milestone for the company and will help it achieve its vision of creating a greener and self-reliant India.

“We extend our heartfelt gratitude to the Government of Gujarat for their steadfast support. Our vision, aligned with the government’s drives this transformative partnership. This MoU solidifies our commitment to electric mobility and the ‘Make-in-India’ initiative. With a significant Rs 2,000 crore investment, we fortify the local ecosystem…This investment is pivotal for ‘Make-in-India,’ easing supply chain pressures…as we prepare to manufacture Lithium-Ion Cells…while also investing in technology and innovation…and growing our marketing initiatives,” he said.

Conclusion

Wardwizard Innovations & Mobility Ltd is one of the leading players in the electric vehicle industry in India. The company has announced a Rs 2,000 crore investment plan to develop an electric vehicle ancillary cluster in Gujarat in partnership with the state government. This will boost its manufacturing capabilities, create employment opportunities, and reduce import dependencies. The market has rewarded the company’s shares with a 13% surge on Thursday, as the company continues to innovate and expand its product portfolio and market presence. Wardwizard is well-positioned to capitalize on the growing demand for electric vehicles in India and become a leader in the green mobility sector.

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