ROCKINGDCE - Rockingdeals Cir

📊 NSE: ROCKINGDCE 🏢 Trading 📅 Last Updated: 12/14/2025 12:26

💰 Financial Performance

Revenue Growth by Segment

Total income reached INR 21.40 Cr in H1 FY25, growing 36.81% YoY. Annual revenue for FY 2024-25 was INR 55.43 Cr, an 11.85% increase from INR 49.56 Cr in the previous year. Growth is driven by B2B recommerce, bulk trading of excess inventory, and the newly launched Barter vertical.

Geographic Revenue Split

Not specifically disclosed by percentage, but the company is actively expanding into Tier-II and Tier-III markets to mitigate economic uncertainty and capture value-conscious buyers.

Profitability Margins

H1 FY25 PAT margins improved by 573 bps to 14.93% (INR 3.2 Cr). However, full-year FY25 Return on Equity (ROE) dipped to 14.40% from 24.80% (a 41.93% decrease) due to heavy reinvestment of profits into inventory for long-term growth.

EBITDA Margin

EBITDA margin for H1 FY25 was 24.45%, representing a surge of 128.40% YoY and a margin expansion of 980 basis points. This was driven by high-margin deals in the Barter vertical and improved product mix.

Capital Expenditure

The company raised INR 42.24 Cr through a Rights Issue of 26,40,000 partly-paid equity shares at INR 160 each to fund growth. Profits are primarily reinvested into inventory rather than traditional CapEx due to a franchisee-led retail model.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company is utilizing internal accruals and rights issue proceeds for expansion, with a focus on maintaining capital deployment efficiency (ROCE of 16.77% in FY25).

⚙️ Operational Drivers

Raw Materials

Excess inventory (40%), open-box electronics (30%), refurbished product stock (20%), and Barter-sourced goods (10%).

Import Sources

Sourced primarily within India from premium brands and e-commerce platforms like Amazon; expanding procurement to include direct brand trashing and customer returns.

Key Suppliers

Amazon (exclusive first-mover in refurbished category), major unnamed national brand (exclusive factory outlet partner), and various small brand tie-ups.

Capacity Expansion

Currently operating 22+ years in the sector; expanding via a franchisee model where internal accruals are remitted into inventory to support a targeted 100% annual growth rate.

Raw Material Costs

Inventory costs are the primary expense; profits are reinvested into stock, leading to negative cash flow from operations which is expected to continue for 1-2 years during the high-growth phase.

Manufacturing Efficiency

Achieved exceptional inventory control with less than 1% write-offs; utilizes AI-driven inspection and end-to-end refurbishment services to maximize recovery value.

Logistics & Distribution

Distribution is handled through a mix of B2B bulk trading and a growing network of franchisee-led retail stores.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

The company plans to achieve 100% CAGR over the next 3 years by opening more franchisee stores, securing exclusive brand partnerships for factory outlets, and scaling the high-margin Barter vertical. They are leveraging their first-mover advantage in the Amazon refurbished category and the projected doubling of the refurbished electronics market within 5 years.

Products & Services

Refurbished electronics, open-box mobile phones, excess inventory consumer goods, and end-to-end refurbishment services.

Brand Portfolio

Rockingdeals, Rockingdeals Circular Economy (RDCEL).

New Products/Services

Expansion of the 'Barter' vertical which contributed to the 1800 bps improvement in gross margins in H1 FY25.

Market Expansion

Aggressive expansion into Tier-II and Tier-III Indian cities through franchisee retail outlets to capture the value-conscious consumer segment.

Market Share & Ranking

Leading Indian B2B recommerce company; first-mover in the Amazon refurbished category.

Strategic Alliances

Exclusive partnership with one of India's largest brands to act as their sole factory outlet partner for discounted inventory.

🌍 External Factors

Industry Trends

The global circular economy is currently only 8.6% circular but projected to be worth USD 4.5 trillion by 2030. The Indian refurbished electronics market is expected to double in 5 years, positioning RDCEL as a key bridge between brands and value buyers.

Competitive Landscape

Faces competition from smaller unorganized players and potential 'brand-led' recommerce initiatives, though RDCEL's scale and exclusive tie-ups provide a competitive edge.

Competitive Moat

Sustainable moat built on exclusive brand partnerships, a 22-year track record in excess inventory management, and a first-mover advantage in major e-commerce refurbishment categories. These are durable due to the high operational complexity of managing fragmented returns.

Macro Economic Sensitivity

Highly sensitive to discretionary spending trends; a slowdown in the USD 29.5 billion e-commerce market could reduce the volume of open-box returns available for processing.

Consumer Behavior

Shift toward 'value-conscious' and 'sustainable' procurement is driving demand for refurbished goods over new products.

Geopolitical Risks

Global supply chain pressures could impact the availability of new electronics, indirectly affecting the volume of trade-ins and refurbished supply.

⚖️ Regulatory & Governance

Industry Regulations

Subject to e-waste management rules and consumer protection regulations regarding the sale of refurbished and open-box goods.

Environmental Compliance

Core business promotes circular economy principles by reducing e-waste (50 million tons generated annually globaly), aligning with national sustainability goals.

Taxation Policy Impact

Standard Indian corporate tax rates apply; Deferred Tax Assets (Net) are recorded on the balance sheet.

Legal Contingencies

The company does not have any pending litigations which would impact its financial position as per the Independent Auditor's Report for FY 2024-25.

⚠️ Risk Analysis

Key Uncertainties

Availability of skilled labor for refurbishment and AI-driven inspection; potential for revenue fluctuations based on the timing of large inventory 'deals'.