Rulka Electricals IPO (SME) Overview

Rulka Electricals Limited is an electrical and Fire-Fighting solutions company that offers various services, including electrical solutions, electrical panels, solar EPC contracts, turn-key electrical warehousing projects, electric commercial industrial services, maintenance services, electrical contracting, and data and voice cabling installation. Rulka Electricals IPO is set to raise Rs 26.40 crores. The issue is a combination of fresh issue of 8.42 lakh shares aggregating to Rs 19.80 crores and offer for sale of 2.81 lakh shares aggregating to Rs 6.60 crores.

IPO opensMay 16, 2024
IPO ClosesMay 21, 2024
IPO Size (Rs.)  26.40 cr
IPO Size (shares)1,123,200 shares
BreakupFresh issue ₹19.80 Cr + OFS ₹6.60 Cr.
Face Value:₹ 10
IPO Price in Rs :₹223 to ₹235 per share
Minimum Lot600 Share
Listing AtNSE SME
QIB~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerBeeline Capital 
Registrar  Bigshare
Market maker Sunflower Broking.

About Rulka Electricals:

  • .Rulka Electricals Limited is in business of turn key projects contractor engaged in offering solutions for all types of Electrical & Fire Fighting Turnkey Projects.
  • Company offers wide range of services like Electrical Solutions, Electrical Panels, Solar EPC Contracts, Turn Key Electrical Warehousing Projects, Electric Commercial Industrial Services, Maintenance Services, Electrical Contracting and Data & Voice Cabling Installation across the Industrial Sector, Commercial, Retail and Theatre sector.
  • They offer electrical contracting services for all types of industrial plants.
  • SERVICE OFFERINGS:
    • Electrical Services
    • Fire Fighting Systems
    • Security Systems
    • Public Address Systems
    • Access Control Systems
    • Audio-Video Systems Services
    • CCTV Systems Service
    • IT & Networking Services
    • Solar Systems
  • The promoters of the Company are Mr. Rupesh Laxman Kasavkar and Mr Nitin Indrakumar Aher

Financials: Rulka Electricals IPO

Particulars/ Rs Lacs11m Feb 20242022-232021-222020-21
Total Revenue6527.774,689.783,627.411,960.11
Profit after Tax565.77280.52112.0853.72
Share Capital341.6111111
Net Worth1290.15557.33276.82164.74
Earnings Per Share16.678.53.41.63
Net Asset Value37.7716.898.394.99
Total Borrowings1104.89527.07281.46230.99
Post issue Share Capital425.8   
FV10.0   
IPO price235.0   
EPS Fy236.6   
PE Fy2335.7   
EPS Fy24 (annualized)14.5   
PE Fy24  (annualized)16.2   
Market cap in Lacs10,006   
Market cap / Sales2.13   

Anchors: Rulka Electricals IPO

Rulka Electricals IPO: Salient Points

  • From the net proceeds of IPO, they will: use mainly for meeting working capital requirements.
  • State of Maharashtra contributes about 60% of their total revenue.
  • 99.94% of the revenue is from operations from India and exports are only made in SEZ zone (i.e. deemed Exports).
  • Key Performance Indicators
Key Financial PerformancePeriod ended February 29, 2024*FY 2022-23FY 2021-22FY 2020-21
Revenue from operations6518.644,683.743,626.511,959.09
Growth in Revenue from Operations39.18%29.15%85.11%13.25%
Gross Profit (₹ in Lakhs) 1125.76666.96409.57248.03
Gross Profit Margin (%)17.27%14.24%11.29%12.66%
EBITDA(811.32401.07220.07105.03
EBITDA Margin12.45%8.56%6.07%5.36%
PAT565.77280.52112.0853.72
PAT Margin8.68%5.99%3.09%2.74%
Net Worth1290.15557.33276.82164.74
RoE(%)61.25%67.26%50.76%38.96%
RoCE (%)33.67%36.51%37.82%24.66%
Net Fixed Asset Turnover (In Times) 24.8317.7116.1910.44
Net Working Capital Days(12)36.1317.497.867.45
Operating Cash Flows (₹ in Lakhs) (13)(335.82)(195.44)69.6316.93
  • Margins have seen an upward trajectory.
  • Revenues have grown at a good pace.
  • They derive 100% revenue from Turnkey Projects – Turnkey Project includes material and Labour both together with Engineering, Designing and Consultancy Services
  • They serve several industry sectors which are warehouse clients, retail clients, Industrial clients and Hotel/Hospital clients. We have completed Warehouses projects across country. Also, we have completed Retail Stores projects, theatres project across country & many more Hospitals & Hospitality. They have completed Warehouses projects across country. Also, completed Retail Stores projects, theatres project across country & many Hospitals & Hospitality.
  • Some warehouse clients:
  • Peers
CompanyCMP Rs.Revenue Rs. CrNet Profit Rs. CrNPM (%)PEMacp/salesRoNW(%)
Rulka Electricals23547.002.86.0%35(16)2.1350.33%
HEC Infra Projects95.152.000.791.5%191.482.62%
  • They also provide Operations and Maintenance (O&M) services, specifically tailored for electrical and fire-fighting systems.
  • The O&M and AMC services contribute 1.21%, 2.33%, 5.64% to the total revenue for the year ended March 31, 2023, March 31, 2022 and March 31, 2021.
  • Apart from electrical contracts, Company is also engaged in providing fabrication of Electrical Panels as per the application.
  • Rs. 26 crore of the IPO proceeds is going towards Funding of capital expenditure towards purchase of Plant and Machineries for Expansion and Upgradation at the existing Manufacturing Facility situated at Dhar, Madhya Pradesh.
  • Rulka Electricals IPO is coming at a PE ratio of 36x (FY23 Earnings) and 16.2x (fy24 annualized earnings)
  • I intend to apply in Rulka Electricals IPO subject to availability of funds. Company has posted good growth in both top and bottom lines over the years, and serves several blue chip clients
  • GMP as reported on social media has been Rs. 240 (102%)
  • Beeline Capital Advisors Pvt Ltd is the Lead Manager to the issue. It has a fair to good record. Past issues handled by them include Piotex Industries, Winsol Engineers, Emmforce Autotech Limited, Greenhitech Ventures Limited, TAC Infosec Limited IPO, KP Green Engineering Limited, Pratham EPC Projects, V R Infraspace, Rudra Gas Enterprise Limited, Fonebox Retail Limited, Konstelec Engineers, Australian Premium Solar, Indifra Limited, Benchmark Computer Solutions, Sheetal Universal Limited, Rajgor Castor Derivatives, Arvind and Company Shipping Agencies, Karnika Industries Limited, Hi-Green Carbon Limited, Kody Technolab Limited, Chavda Infra Limited, Vinsys IT Services Limited,Ahasolar Technologies, Pentagon Rubber, Remus Pharmaceuticals, Sotac Pharmaceuticals, RBM Infracon Limited, Transvoy Logistics, Dev Labtech, Viviana Power Tech, Vital Chemtech, Aristo Bio-Tech and Lifescience, Viaz Tyres, Vertexplus Technologies etc.
  • SME IPO are much more risky and volatile than mainboard IPOs and may not be suitable at least for new retail investors.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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