The shares of a Micro-Cap company, specializing in a wide range of electrical and firefighting services, including electrical solutions, solar EPC contracts, electrical contracting, and data & voice cabling installation, hit a 5 percent upper circuit upon receiving a work order from various clients for electrical and firefighting works.
With a market capitalization of Rs. 58.13 crores on Monday, the shares of Rulka Electricals Limited hit a 5 percent upper circuit, making a high of Rs. 136.50 per share compared to its previous closing price of Rs. 130.00 per share.
Rulka Electricals Limited, engaged in a wide range of electrical and firefighting services, has confirmed new orders totaling Rs. 16.34 crores from various clients for electrical and firefighting works across multiple locations.
These include the procurement and setup of transformers and DG sets, along with external and internal electrical fittings for a warehouse project in Karnataka, valued at Rs. 5.50 crores for an 8-month duration. Another warehouse project involves setting up LV FAPA firefighting systems, worth Rs. 7.90 crores, also to be completed in 8 months.
Additionally, an industrial project in Tamil Nadu requires the procurement, installation, and commissioning of PT panels, LT cables, and fixtures, valued at Rs. 2.93 crores, with a completion timeline of 12 months.
The company’s revenue rose by 44 percent from Rs. 34.55 crore to Rs. 49.78 crore in H2FY24-25. Meanwhile, Net profit declined from Rs. 3.72 crore to Rs. 1.32 crore during the same period.
The company has a P/E ratio of 24.72, which is below the industry average of 33.78, indicating potential undervaluation. It maintains a low debt-to-equity ratio of 0.26, signaling strong financial stability. The company also boasts a solid average return on equity (ROE) of 43.43% and return on capital employed (ROCE) of 32.51% over the last three years,
Rulka Electricals Limited is an Indian MEP (Mechanical, Electrical, and Plumbing) project contractor, specializing in providing electrical and firefighting solutions across various industries. Established as a part of the Rulka Electricals Pvt Ltd, the company offers end-to-end services, including procurement, installation, testing, and commissioning of electrical systems, transformers, DG sets, and firefighting systems.
Rulka Electricals Limited’s order book grew from Rs. 68.40 crore in H1 FY25 to Rs. 93.98 crore in H2 FY25, totaling Rs. 163.28 crore for FY25, with pending orders to be completed by FY26.
The company expanded its client base, securing orders in key Indian states like Tamil Nadu, Uttar Pradesh, and Gujarat, focusing on the warehousing and retail sectors.
The company’s Revenue from Electrical Works rose from Rs. 48.85 crore to Rs. 58.19 crore, while Firefighting Systems revenue grew from Rs. 14.84 crore to Rs. 21.56 crore. Despite strong growth, the company faced margin pressure due to rising input costs, labor expenses, and increased compliance costs.
Written by Sridhar J
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