At a Glance
Rulka is a one-stop-shop for electrical contracting, firefighting systems, solar EPC, and more — primarily for industrial and commercial spaces. While it posted explosive growth in FY22–FY24, FY25 seems to have thrown a wet switchboard on its margin story. Still profitable, still growing, but is the juice worth the current ₹133 squeeze?
1. 🔌 Business Model – Wiring India, Quietly
- Founded in 2013, Rulka offers:
- Turnkey electrical and firefighting solutions
- Solar EPC projects
- Theatre and warehouse electrification
- Cabling, maintenance, and data infra
- Clients include industrial parks, commercial buildings, theatres, and logistics chains.
🧠 Edu Angle: Think of them as the electricians behind India’s next mall, multiplex, and solar rooftop.
2. 🧾 Financial Performance – From Amped Up to Dimmed Down
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 19.6 | 36.3 | 46.8 | 71.0 | 79.5 |
| PAT (₹ Cr) | 0.54 | 1.12 | 2.79 | 6.11 | 2.26 |
| OPM (%) | 5.8% | 6.5% | 9.0% | 12.5% | 5.4% |
| EPS (₹) | 49.1 | 101.8 | 253.6 | 17.9 | 5.3 |
📉 FY25 Net Profit Crashed 63% YoY despite revenue growing ~12%
⚠️ Margins cut in half – from 12.5% to 5.4%
💰 Cash from operations: negative ₹15 Cr in FY25. Ouch.
3. 🔍 What Went Wrong in FY25?
- 👷♂️ Operating expenses spiked disproportionately to revenue.
- 🧾 Working capital cycle ballooned from 97 to 161 days
- Debtors: 162 days 🧻
- Payables shrank → less credit from suppliers
- 🔥 Orders worth ₹24.43 Cr confirmed in May–June 2025, but yet to reflect in revenue.
🧠 Edu Insight: This is classic SME growing-pains. Cash gets squeezed before the new orders hit P&L.
4. 🧮 Fair Value Calculation – Are We Overpaying?
FY25 EPS = ₹5.31
CMP = ₹133
P/E = 25x
| Scenario | P/E | FV |
|---|---|---|
| Bear Case | 15x | ₹80 |
| Median (Infra SME) | 20x | ₹106 |
| Bull Case (Margin rebound + order execution) | 25x | ₹133 |
🎯 Edu FV Range: ₹80 – ₹133
➡️ CMP sits at upper band of fair value. Market’s pricing in recovery already.
5. 📈 Peer Check – Rulka Is a Minion Among Infra Titans
| Company | Mcap (₹ Cr) | ROCE | EPS (TTM) | OPM | P/E |
|---|---|---|---|---|---|
| L&T | 4.98L | 14.5% | ₹184 | 13.4% | 32.7x |
| NBCC | 33.7K | 33.5% | ₹2.2 | 5.2% | 55.3x |
| Kalpataru | 21K | 16.0% | ₹103 | 9.1% | 37.4x |
| Rulka | ₹57 Cr | 12.2% | ₹5.3 | 5.4% | 25.1x |
🧠 For an SME, Rulka’s ROCE/ROE are decent — but margins and scale remain weak. It’s not a Kalpataru yet.
6. 🚩 Red Flags – Don’t Ignore These
- ⚠️ 1-Year Stock Crash: Down ~80% from ₹667 to ₹133
- 🚨 Cash Flow Crisis: Consistently negative CFO for 3 years
- 📉 ROCE fell from 50% to 12% in FY25 – brutal.
- ⏳ Debtor days = 162 → delayed payments?
- 🧍♂️ FII Holding dropped from 2.35% → 0.61% in Mar 2025
7. 💡 Final Verdict: Can This Wire Reconnect?
Rulka has a solid base business, expanding order book, and strong promoter skin in the game (69%). But:
- Execution pain is real
- Margins are melting
- Cash flow is redder than a fuse box after a short circuit
If they deliver on the new ₹24 Cr+ worth of orders without burning more cash… the lights may come back on. But for now, investors may want to wait for a margin rebound before flipping the switch.
Tags:
rulka electricals, sme infra stock, electrical epc company, sme share analysis, fire safety infra, stock crash, eduinvesting
✍️ Written by Prashant | 📅 26 June 2025
