Synopsis:
The shares of Rulka Electricals jumped 5 percent post securing a contract valued at Rs 34 crore from various clients, which is more than half of its market cap.
The shares of this electrical and firefighting solutions company jumped by 5 percent after it bagged a contract worth Rs 34.23 crore in the airport and warehouse segments. In this article, we will discuss more on it further.
With a market capitalisation of Rs 59.2 crore, the shares of Rulka Electricals Ltd are currently trading at Rs 139 per share, down by 79 percent from its 52-week high of Rs 656.95 per share. In the last one year, the stock has corrected by over 76 percent.
Rulka Electricals has secured new orders worth about Rs 34.23 crore (including GST). Various clients have awarded these orders for electrical works, fire-fighting systems, and solar system installations. The company received three major orders across different infrastructure segments.
The first project is in the airport segment in Lucknow. It involves procuring, installing, testing, and commissioning LT panels, LT cables, cable trays, fixtures, and LV FAPA firefighting systems. This project is expected to last 12 months and has the highest order value at Rs 33.38 crore.
The second order is for a warehouse project at Shoukya, Bengaluru. This project focuses on procuring, installing, testing, and commissioning LT cables and distribution boards. It has a completion timeline of 3 months and is valued at Rs 15 lakh.
The third project, another warehouse assignment in Bengaluru, includes procuring, installing, testing, and commissioning LT panels and cables along with cable trays and fixtures. It will take 6 months and is valued at Rs 70.30 lakh. As of FY25, the company had an order book of Rs 163.28 crore. Its order book grew by 37.40 percent to Rs 93.98 crore in H2 FY25 from Rs 68.40 crore in H1 FY25.
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Financial Highlights
The company reported a revenue of Rs 79.47 crores in FY25, up by 12 percent from its FY24 revenue of Rs 70.98 crores. However, the company reported a net profit decline of 63 percent to Rs 2.26 crore in FY25 from Rs 6.11 crores in FY24.
The stock delivered an ROE and ROCE of 9.53 percent and 12.22 percent, respectively, and is currently trading at a P/E of 26.19x as compared to its industry average of 25.19x..
Rulka Electricals Limited specialises in managing turnkey projects within the electrical and fire-fighting sectors. They offer a range of services, including electrical solutions, solar EPC, warehousing projects, and maintenance.
Their expertise spans various industries, such as industrial, commercial, retail, and even theatres. The company also tailors its operations and maintenance services to meet specific needs, providing inspections and emergency support when necessary.
With a dedicated team on board, they ensure everything runs smoothly. All of their revenue is generated from turnkey projects that encompass design, materials, and labor.
Written by Satyajeet Mukherjee
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