Roadzen Inc (RDZN) AI Stock Analysis

• Market Cap: $86.55M
• Dividend Yield: N/A
• Average Volume (3M): 183.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 37.87%
• EPS Growth: 14.35%
• Country: US
• Employees: 368
• Sector: Technology
• Sector Strength: 51
• Industry: Software - Application
• EPS (TTM): -1.56
• Shares Outstanding: 74,290,985
• 10 Day Avg. Volume: 234,874
• 30 Day Avg. Volume: 183,060
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.07
• Price to Cash Flow (P/CF): -3.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.00
• Price Target Upside: 358.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Roadzen Inc has notable revenue growth but is severely hindered by poor profitability and financial instability, reflected in its high leverage and negative equity. Technical indicators suggest bearish momentum, while the negative P/E ratio and lack of dividend yield make the stock less attractive from a valuation standpoint. Overall, the stock is risky, and improvements in financial health and profitability are required for a better outlook.

Positive Factors

Industry Recognition

Roadzen wins the IFTA Excellence in InsurTech award by the India FinTech Forum, highlighting its leadership in the industry.

Market Expansion

Several announced contract wins increase confidence in the outlook for future fiscal years, with expansions focused on India and the U.S., the latter being the most profitable market.

Technological Innovation

Roadzen's MixtapeAI solution is applying AI to improve efficiency, reducing headcount by 11%, and is planned to be sold externally.

Negative Factors

Financial Performance

The adjusted EBITDA loss was wider than the analyst's estimate.

Product Suspension

The UK has been impacted by temporary suspension of its GAP insurance offerings.

Revenue Decline

Revenue was down 12% year over year with the main variance due to not writing UK-based GAP insurance.

Roadzen Inc Business Overview & Revenue Model

Company Description

RoadZen, lnc. provides an online on-demand roadside assistance services with a network of towing and roadside repair providers in India. The company suite enables Insurers and Automotive OEMs with real-time customer interactions, rapid claims processing, and better risk underwriting services. It also offers services in the areas of towing and removal, battery jumpstart, flat tire support, locked out/lost keys, fuel problems, and roadside assistance. The company was incorporated in 2015 and is based in New Delhi, India.

How the Company Makes Money

Roadzen Inc generates revenue through its suite of digital insurance products and services tailored for the automotive industry. The company earns money by partnering with insurance providers to offer AI-driven solutions that improve underwriting processes and claims management. Additionally, Roadzen leverages data analytics to provide insights and risk assessment tools, which are monetized through licensing agreements and subscription models. The company's strategic partnerships with automotive companies and insurers are crucial in expanding its market reach and driving revenue growth.

Roadzen Inc Financial Statement Overview

Summary

Roadzen Inc is experiencing rapid revenue growth but struggles with profitability and financial stability. High leverage and negative equity are significant concerns, while reliance on external financing raises sustainability issues. The company needs to improve operational efficiency and cash management to enhance financial health.

Income Statement

Roadzen Inc shows significant revenue growth with a recent spike in TTM revenue compared to historical figures, which is a positive sign of market expansion. However, the company suffers from negative profitability metrics, with gross profit, EBIT, and net profit margins all in the red, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals high leverage with a substantial negative stockholders' equity and a significant debt-to-equity ratio, which indicates financial instability and potential liquidity challenges. The negative equity ratio further emphasizes the risk of default and financial distress.

Cash Flow

Cash flow analysis shows consistent negative free cash flow, suggesting cash outflows exceed inflows, which is unsustainable long-term. The operating cash flow to net income ratio is negative, highlighting cash management issues, but financing cash flow is positive, indicating reliance on external funding.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
12.09T	46.72M	13.56M	9.99M	1.16M
	Gross Profit
7.81T	28.59M	8.15M	5.18M	-195.16K
	EBIT
-3.17T	-77.66M	-11.53M	-6.24M	-3.79M
	EBITDA
-3.31T	-95.41M	-11.84M	-4.87M	-2.64M
	Net Income Common Stockholders
-21.81T	-99.67M	-14.02M	-9.74M	-15.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
589.34K	40.48M	589.34K	913.64K	4.63M
	Total Assets
15.18M	58.14M	15.18M	15.87M	17.09M
	Total Debt
8.95M	20.08M	8.95M	23.72M	21.48M
	Net Debt
8.36M	8.90M	8.36M	22.81M	16.85M
	Total Liabilities
66.26M	68.64M	66.26M	52.83M	44.20M
	Stockholders Equity
-50.85M	-10.07M	-50.85M	-36.88M	-27.10M
Cash Flow		Free Cash Flow
-14.48T	-15.88M	-8.39M	-5.15M	-5.10M
	Operating Cash Flow
-14.43T	-15.43M	-7.55M	-4.07M	-4.71M
	Investing Cash Flow
1.42T	-6.71M	-841.36K	-1.15M	-2.80M
	Financing Cash Flow
7.23T	21.57M	8.36M	851.94K	-24.19K

Roadzen Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDZN, the sentiment is Negative. The current price of 1.31 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.15, and below the 200-day MA of 1.43, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 64.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDZN.

Roadzen Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$20.06B	9.61	-11.19%	2.76%	5.41%	-24.85%
PSQH	54 Neutral	$77.67M	―	-309.46%	―	385.52%	-33.32%
FRGE	46 Neutral	$116.55M	―	-27.24%	―	13.62%	30.25%
SVCO	46 Neutral	$123.00M	―	-44.74%	―	―	―
NXTT	41 Neutral	$108.63M	0.03	34.10%	―	-44.58%	1200.82%
CSAI	33 Underperform	$78.92M	―		―	―	―
RDZN	26 Underperform	$86.55M	―	64547968.94%	―	37.87%	14.35%

Roadzen Inc Corporate Events

Roadzen Inc Extends Vesting Schedule for Key Executives

Roadzen Inc. has amended the vesting schedule for restricted stock units awarded to its CEO and COO, extending the vesting date by one year to September 17, 2025. This change affects a significant number of shares, reflecting a strategic decision to retain key executives. Investors might find this adjustment indicative of the company’s efforts to secure leadership continuity.