“From parking cars to parking losses.”
1. 🛰️ At a Glance
Affordable Robotics & Automation Ltd (ARAPL) is India’s first BSE-listed robotics company, but in FY25, it feels more like India’s first listed disappointment in automation. With robots installed across Asia and a €300 robot export dream, you’d expect some alpha. But instead, we get a ₹12 Cr annual loss and a stock trading at 5.6x Book Value. Why? 🤖🤷
2. 🎬 Introduction with Hook
“Imagine if Boston Dynamics outsourced its finance team to the Flintstones.”
ARAPL makes automation systems, car parking solutions, and now autonomous EVs. Their PR says they’ve got 5,000+ robots and 10K car parks installed. But their P&L looks like someone put it in reverse gear — and forgot the brakes.
Promoter stake falling, margins negative, debtor days 190+, and one too many buzzwords.
3. 🏭 Business Model – WTF Do They Even Do?
ARAPL has 3 major segments:
- 🤖 Industrial Automation – welding lines, material handling robots, conveyors
- 🚗 Automated Car Parking – vertical car parking systems in metros
- 🦾 Autonomous Vehicles / RaaS (Robot-as-a-Service) – just launched, already bleeding
They also have a subsidiary in the US, and plans for Europe expansion. On paper: futuristic. In reality: fiscally prehistoric.
4. 📉 Financials Overview – Profits, Margins, Growth?
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Sales | ₹163 Cr | ₹163 Cr | ₹112 Cr |
| Operating Profit | -₹3 Cr | ₹16 Cr | ₹8 Cr |
| Net Profit | -₹12 Cr | ₹6 Cr | ₹2 Cr |
| ROE | -10.9% | 5.7% | 1.9% |
| OPM | -2% | 10% | 8% |
They doubled revenue over 3 years — but erased every rupee of margin doing it. OPM has become OMG.
5. 💸 Valuation – Cheap, Meh, or Crack?
- CMP: ₹505
- Book Value: ₹89.6
- P/B: 5.64x 😵
- PE: N/A (because profit chhutti pe)
- Market Cap: ₹564 Cr
🧠 Fair Value Range:
Assuming they get back to ₹10 Cr PAT and trade at 25x P/E:
👉 FV = ₹220–₹260/share
Right now? It’s 2x that, purely running on hype, not cash flows.
6. 🍿 What’s Cooking – News, Triggers, Drama
- 🇺🇸 Entered the US market via RaaS subsidiary
- 🇪🇺 Planning Europe entry with Mold-Tek MOU (June 2025)
- 📉 FY25 Net Loss = ₹12 Cr, down from ₹6 Cr profit last year
- 🚨 Promoters cut stake from 61.5% → 55.6%
- 🧾 Rights issue in Mar 2024 — 130% subscribed but retail seems trapped
Also got a patent for “Smart Stock Audit” 🤖
But maybe they should audit their own stock valuation.
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 |
|---|
| Borrowings: ₹56 Cr (up from ₹52 Cr) |
| Reserves: ₹90 Cr (down from ₹101 Cr) |
| Total Liabilities: ₹233 Cr |
| CWIP: ₹18 Cr – probably for RaaS capex |
Debt keeps rising. Equity value eroding.
Still no dividend. Still no delivery.
8. 💵 Cash Flow – Sab Number Game Hai
| FY25 |
|---|
| Operating Cash Flow: -₹6 Cr |
| Investing Cash Flow: -₹24 Cr |
| Financing Cash Flow: ₹0 Cr |
Final Net Cash Flow = -₹30 Cr 😬
Kya automation business hai jo har saal cash automate karke drain kar deta hai?
9. 📐 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | -2.64% |
| ROE | -10.9% |
| Interest Coverage | Below 1x |
| Debtor Days | 191 Days 😱 |
| CCC | 222 days |
They’re building automation systems, but haven’t figured out how to automate customer payments.
10. 📊 P&L Breakdown – Show Me the Money?
Q4 FY25:
- Sales: ₹84.4 Cr
- OPM: 8.4%
- Net Profit: ₹2.3 Cr (barely recovering from Dec’s -₹1.66 Cr)
Q3 was a bloodbath: ₹34 Cr revenue, ₹-1.66 Cr loss
Q2 was worse: ₹43 Cr rev, ₹-12.3 Cr loss
FY25 = rollercoaster of broken elevators.
11. 🥊 Peer Comparison – Who Else in the Game?
| Company | ROE | OPM | Remarks |
|---|---|---|---|
| Kaynes Tech | 11% | 15% | Valued but profitable |
| Jyoti CNC | 21% | 27% | Fast-growing OEM |
| Tega Inds. | 15.4% | 20% | Strong Moat |
| ARAPL | -10.9% | -2% | Hype machine, no cash engine |
12. 🧬 Misc – Promoters, Public, Retail Drama
- Promoters: 55.6% (↓ from 61.5%)
- Public: 43.3%
- FIIs/DIIs: Combined ~1.01%
- Retailers increased from 2.5K → 5.7K in 1 year 🔥
Public loves a robotics buzzword. But earnings don’t follow that same path.
13. 🧑⚖️ EduInvesting Verdict™
“Affordable hai sirf naam mein.”
ARAPL has:
✅ Sexy sectors (Robotics, Automation, EVs)
✅ Global plans (US, Europe)
✅ Patents and parking systems
But it also has:
❌ Poor cash flow
❌ High receivables
❌ Falling promoter trust
❌ Overvaluation at 5.6x BV with no profits
Until they show 3 clean quarters of >10% OPM and real profit — this is an expensive robot with dead batteries.
✍️ Written by Prashant | 📅 9 July 2025
Tags: ARAPL, Affordable Robotics, Industrial Automation, RaaS, Robotics Stocks, NSE Mainboard Migration, EduInvesting, Penny Stocks, Turnaround Bet, Valuation Bubble
