Small-cap stock in focus: Shares of Rulka Electricals, a small-cap company, hit the 5% upper circuit limit in Monday’s intraday session, June 16, to reach the day’s high of ₹136.50 apiece. This sharp rally came 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.
Rulka secured two warehouse-related contracts from a prominent real estate company in Bengaluru, Karnataka. The first order, valued at ₹5.50 crore, involves the procurement and setup of transformers, DG sets, and internal and external electrical fittings for a warehouse, to be executed over eight months. 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 total 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 FY25 with an order book of ₹163.28 crore.
On the financial front, Rulka Electricals reported a revenue of ₹79.47 crore, 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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