Kaiser Corporation Shares Soar 5% After MoU to Lease 7,500 EVs — Stock Under ₹10 Turns Heads
Kaiser Corporation : In a major boost to India’s sustainable mobility ambitions, a micro-cap stock trading under ₹10 has caught investors’ attention by locking in a 5% upper circuit after announcing a key development in the electric vehicle (EV) space. Kaiser Corporation Ltd, a diversified company with operations in printing, packaging, engineering, and infrastructure, signed a Memorandum of Understanding (MoU) through its subsidiary to lease a fleet of 7,500 electric scooters. The move has sparked optimism about the company’s future prospects, especially among retail investors looking for high-growth, low-priced opportunities.
Kaiser Corporation’s Stock Movement
On Tuesday, Kaiser Corporation’s shares surged 5% to hit an intra-day high of ₹6.64, up from its previous close of ₹6.33. This rally came in response to its subsidiary Xicon International Limited’s MoU with WardWizard Innovation and Mobility Limited, a well-known EV manufacturer in India. Notably, Kaiser’s stock has already delivered 480% returns in the last five years, and this latest development might push it toward further growth, especially as EV adoption picks up pace in India.
EV MoU with WardWizard: What It Means
As per the MoU, Xicon International will procure and lease 7,500 electric scooters from WardWizard during FY 2025-26 and FY 2026-27. These scooters will be sub-leased to logistics and last-mile delivery providers in high-density urban centers like Mumbai, Pune, and Ahmedabad. The goal is to promote greener transport solutions and support India’s transition to a more sustainable future.
The agreement is expected to generate ₹30–33 crore in revenue over the lease term for Xicon. This diversification into EV leasing represents a strategic expansion for Kaiser Corporation, helping it align with global sustainability goals and capitalize on the rapidly growing EV segment.
Business Diversification: More Than Just EVs
Kaiser Corporation isn’t just betting on electric vehicles. The company already has a strong presence in two major business areas:
- Printing and Packaging: Kaiser produces labels, cartons, magazines, and various stationery products catering to a wide client base across industries.
- Engineering and Infrastructure: Through its subsidiaries, it manufactures engineering goods and heat tracing systems while also providing turnkey project execution services, both in India and abroad.
This balanced business portfolio positions Kaiser well for long-term growth, offering both stability and innovation-driven expansion.
Financial Snapshot
Despite the recent rally, Kaiser Corporation’s Q3 FY25 financials revealed some challenges. Here’s a breakdown:
- Revenue: ₹1.70 crore in Q3 FY25, down 66.2% YoY and 75% QoQ
- Net Loss: ₹2.60 crore in Q3 FY25 compared to a net profit of ₹0.02 crore in Q3 FY24
- ROCE: 10.2%
- ROE: 4.5%
- Debt-to-Equity Ratio: 1.88
- Current Ratio: 2.38
- EV to Sales: 2.56
Key Financial Ratios and Stock Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹34.9 Crore |
| Current Price | ₹6.63 |
| 52-Week High / Low | ₹12.70 / ₹4.03 |
| Stock P/E | — |
| Book Value | ₹1.39 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital) | 10.2% |
| ROE (Return on Equity) | 4.5% |
| Face Value | ₹1.00 |
| Current Ratio | 2.38 |
| Debt-to-Equity | 1.88 |
| EV to Sales | 2.56 |
Conclusion
Kaiser Corporation’s strategic MoU with WardWizard Innovation marks an exciting new chapter in the company’s journey. While recent financial results reflect some challenges, its diversification into the booming EV market could open new growth avenues. For investors looking at undervalued, future-ready stocks in the sub-₹10 category, Kaiser Corporation is certainly one to watch.
Frequently Asked Questions (FAQs)
Q1. Why did Kaiser Corporation’s stock hit the upper circuit?
A: The stock hit a 5% upper circuit after its subsidiary signed an MoU to lease 7,500 electric scooters from WardWizard Innovation, signaling a major move into the EV leasing business.
Q2. What is the potential revenue from this EV leasing deal?
A: The company expects to generate ₹30–33 crore over FY 2025–26 and FY 2026–27 through this initiative.
Q3. Where will the leased EVs be used?
A: The electric scooters will be used in cities like Mumbai, Pune, and Ahmedabad, targeting the logistics and last-mile delivery sector.
Q4. Is Kaiser Corporation involved in sectors other than EVs?
A: Yes, the company operates in printing & packaging and engineering & infrastructure through its subsidiaries.
Q5. What are the key financial ratios of Kaiser Corporation?
A: Some key metrics include ROCE at 10.2%, ROE at 4.5%, current ratio of 2.38, and a debt-to-equity ratio of 1.88.
Q6. Is the stock a multibagger?
A: Over the last five years, Kaiser Corporation has delivered over 480% returns, qualifying it as a multibagger stock.
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