Rulka Electricals Limited IPO (Rulka Electricals IPO) Detail

RULKA🌞🌞🌞🌞🌞🌠🌠🌠🌠

lagta hai kal UC lagega after PM's Speech today...agar sab thik Raha toh..

​@Mr. Agrawal No UC applied after pm speech. Will it hit in coming days?? Any input? Plz advise.

ભાગે ઇ ભાઇડા..😂😂
Successfully converted rs.174000 profit into rs.90600..😆😆

It was hard to understand why this kept falling inspite of massive subscription, good fundamentals and some well known customer base.
But, given the election fears and continuous LC this week, I sold my 1 lot at 398.

​@Tejas Pandya I sold on listing day @ 505.

PFB my research notes on Rulka Electricals. I added a few lots today

Stock overview
Price
Rs 386 / share
Market Capital - Rs 164 Cr
P/E (based on FY24E earnings) - 26.6x y✅,
P/B - 4.9x

Business overview:
Rulka electricals is a turnkey project contractor for providing electrical contracting services, design and installation of fire fighting systems. They also offer other services for warehouse / industrial facility installations, such as:
-> Data and voice cabling installation services
-> Security systems
-> CCTV systems
-> IT and Networking services
-> Audio video systems services
-> Access control systems
-> Public address systems

By bundling these services, Rulka increases the average order value and gross margins.

They work closely with vendors to source and design products for installations.
Projects typically last 12-18 months and are capital-intensive.

Management background

Rupesh Kasavkar - Founder promoter and managing director
-> Diploma in Electrical Engineering, 20+ years in electrical and fire fighting projects, key in strategy and management.
-> Salary withdrawn - 25.36 lakhs for FY23 ✅

Nitin Aher - Founder promoter and whole time director
-> Diploma in Electrical and Software Engineering, 20+ years in the field, oversees project execution and business expansion.
->Salary withdrawn - 25.36 lakhs for FY23 ✅

Criminal case against the directors - NIL
Tax litigation against the company - 3 (total litigation amount is INR 30.5 lakhs)

Customer base
-> Rulka electricals has served a reputed client base, a lot of which are blue chip companies. The strong ties with its existing customers helps them to get repeat orders.
-> As customers expand and set up more industrial / warehouse units, the company benefits from repeat orders from its existing client base.
-> The company has also completed projects for retail stores, theaters, hospitals, and hospitality across the country.

Key clientele :
-> Delhivery, DMART, Sun Pharma, Big Basket, PVR, Trent, Reliance, Shoppers Stop, Westin, Mahindra Logistics, Lodha and many others

Big Contract updates
-> Ongoing projects : ~INR 52 Cr with avg. ticket size of ~INR 2 Cr

Issue size
-> Total raised: INR 26.4 Cr (INR 6.6 Cr offer for sale)
-> Anchor investors: INR 7.5 Cr from reputed investors like BofA Securities Europe SA, Negen Undiscovered Value Fund, Galaxy Noble Global Opportunities Fund PCC, etc.

Use of IPO proceeds
Net working capital requirement - INR 14 Cr
General corporate expenses - INR 6 Cr

As a working capital-intensive business, funds will mainly support net working capital needs, enabling the company to scale operations and take on more projects.

Revenue bifurcation
-> While the company has nationwide presence, more than 55% of the revenues come from Maharashtra, with Gujarat, Delhi, Haryana, Telangana being other top contributors.

Revenue distribution by top customers:
-> Decreasing trend in revenue contribution from top customers, implying less customer concentration risk. ✅

Margin outlook :
The management is confident of maintaining current margin levels and increasing it going forwards with more larger ticket size contracts. ✅

Growth drivers :
-> Warehousing market : The Indian warehousing market in top 8 cities (by total space in mn sq.ft) has grown by 17% CAGR over the last 5 years.
-> Manufacturing Sector : In 2023, India's manufacturing sector contributed 17% to GDP. With the Make in India initiative and rising FDI, the government aims to increase this to 25% by 2025.
-> Shift to Organized Market : As the market develops, organized players with access to technology, deep vendor relations and a highly accountable work process will be favored over unorganized players.

The company is expected to benefit from this growth with an increased order flow from new warehousing and industrial capacity setups. ✅

Business Moat
-> Integrated solutions provider : Offers multiple warehouse installation services under a single umbrella differentiating it from other competitors.
-> Strong client base : Long-term relationships with blue chip clients across sectors and geographies
-> Strong execution : Experienced team with a track record of timely, quality work which is evident from the repeat business it gets from its existing clients.
-> Cost management : The deep ties with its vendors and partners has helped to execute the projects in a cost effective and timely manner.

Big Clients 🔥🔥

📌Bought 1 lot rulka at lc today!
PE is 25 now
Sector is hot!
Good company✅, also into solar epc🤞
Some selling pressure due to election fear!
Once exit polls are out!
It may run from Monday??🧐

Positive results of exit poll✅
I hope election results fear has reduced now👍
Lets see how rulka performs in coming days🤞

Rulka at LC. Keep hitting LC like abs

Whenever I will write a book like Chetan bhagat's 3 mistakes of my life (SME)
1) spectrum 😆
2)Rulka hold😂😂
3)??

​@Tejas Pandya Bhai...there was famous song...rulake gaya spana tera...now same is happening here...rulake gaya rulka mera😂😂😂just for fun.

Plz check comment number 93..😁

Anybody done peer analysis on this one?

Who are al the peers.. how much overvaluation or under valuation is factored in..at this price.

When will this stoppp falling 🙏🙏

Nobody knows 😊

Rulake gaya ishk tera 😂

447000 shares already traded with 99.60% delivery.
Very low free float stock, may be easily some one pump or dump.

Free float is approx. 8 Lakh. 1st day delivery- approx 4.8 lakh. So many people did not sell in preopen as the listing was below GMP (expected 645 as compared to actual listing at 525). Now they are desperate to sell at LC.
I was prepared to buy till 420, the price it was equilibrating before 9:30 yesterday. This or below may be reversal point in future. Till then patience is key.
(Disclaimer): I have no allotted or bought position; I may buy in future at my comfortable price. My point of view and not a recommendation to buy or sell. )
Other members and experts view are welcome.

24-May-2024      RULKA      Rulka Electricals Limited      MANSI SHARE AND STOCK ADVISORS PVT LTD      BUY      24,000      525.00      -

Flipper hai...

Ignore deals from Mansi, gretex, graviton
.etc..

Ab ye Monday loss book krega...

Can we expect UC on Monday or Tuesday ?

LC

Rulka ka Munafa batao.. @Tejas Pandya Bhai.. 🔥
Sell kiya ya hold.. !!

​@SJ❤️ Bhai.. Sold my two lots @97.. Yesterday.. Will entered again if fall below 80..!!

​@GrayIsTheNewBlack I was reluctant to contact the broker .but after your encouragement I have done it..not very hopeful but atleast it will be helpful next time that what went wrong..

​@Tejas Pandya Thank you for guidance. Not very active comments writer but silent observer.

Remove ho gaya he

SBI UNBLOCKED

SBI unblocked money just now.

Anybody still IDFC FIRST fund not unblocked

Shares have also been listed. Still SBI ASBA NOT unblocked. SBI very late once again.

My IDFC Fund got Unblocked around 1045

HDFC bank unblocked.

out at UC 🙏

Block buster listing. Jai Mata Di