Small-cap stock with just ₹57 crore market cap secures ₹16.3 crore ECS orders. Details here

Small-cap stock in focus: Shares of Rulka Electricals, a small-cap company, hits the 5% upper circuit limit in Monday's intraday session, June 16, to reach the day's high of ₹136.50 apiece, after the company announced it had secured multiple new orders for Electrical Contracting Services (ECS). 

In an exchange filing today, the company informed investors that it received fresh orders worth ₹16.34 crore from various clients.

It secured two warehouse-related contracts from a prominent real estate company in Bengaluru, Karnataka, which is valued at ₹5.50 crore, involves the procurement and setup of transformers, DG sets, and internal and external electrical fittings for a warehouse. The second order, worth ₹7.9 crore, includes procurement and installation of LV FAPA firefighting systems for another warehouse project.

Additionally, the company bagged an order in the industrial segment in Thoothukudi, Tamil Nadu, from a private real estate consulting firm. The 12-month contract, worth ₹2.93 crore, covers procurement, installation, testing, and commissioning of LT panels, LT cables, cable trays, and fixtures, as per the company's exchange filing. The combined order value of ₹16.34 crore is equivalent to 29% of the company’s market capitalization of ₹57 crore as of June 16.

Order book expanded to over ₹163 crore in FY25

In its recent investors' presentations filing, the company said it had expanded client base and secured orders across key Indian states during FY2024-25, including Tamil Nadu, Uttar Pradesh, Madhya Pradesh, Haryana, Gujarat, Andhra Pradesh, and Telangana, particularly in the warehousing and retail segments, ending the fiscal year with an order book of ₹163.28 crore. 

On the financial front, Rulka Electricals reported a revenue of ₹79.47 crore in FY25, up from ₹70.98 crore in the same period last year. However, net profit declined to ₹2.26 crore from ₹4.37 crore due to margin pressures.

Despite maintaining growth momentum in FY25, the company faced significant margin pressure from rising input costs, higher labor expenses, increased compliance costs, and non-scalable overheads during the execution of large-scale projects.

Looking ahead to FY26, Rulka said its strategic priorities include cost optimization through streamlined procurement and automation, expansion into renewable energy and smart infrastructure, financial restructuring, and a focus on broadening its geographic and client footprint to capture high-value projects across new states.

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