Ring Plus Aqua Unlisted Shares
Buy - ₹N/A
Sell - ₹670.00
About Ring Plus Aqua Unlisted Shares
1. About Ring Plus Aqua Ltd. (RPAL)
Ring Plus Aqua Limited (RPAL), established in 1984, is a leading manufacturer of high-quality automotive components, including starter gears, water pump bearings, flexplates, sheet metal pulleys, and precision-machined components. The company operates from its state-of-the-art manufacturing units located in Nashik, Maharashtra, with its corporate office situated in Mumbai, India. RPAL has earned a significant reputation in the global automotive industry for its precision engineering, superior product quality, and commitment to customer satisfaction.
As a subsidiary of Raymond Limited, RPAL specializes in components critical to automotive systems, including flywheel starter gears, bearings, and flexplates. With advanced manufacturing technologies and a robust supply chain, the company serves a diverse range of customers across India and internationally. RPAL’s products are exported to markets in the USA, Europe, Brazil, Japan, and China, among other regions, highlighting its global reach and business growth.
2. Business Divisions of Ring Plus Aqua Ltd.
RPAL operates through three main manufacturing divisions, each focusing on high-precision components for the automotive and industrial sectors:
- Starter Gear Division
The Starter Gear Division manufactures flywheel starter ring gears for various engine types, including petrol, diesel, and gas engines. The division has an installed production capacity of 8+ million units annually and serves industries such as passenger cars, trucks, earth-moving equipment, power generators, and marine engines. This division utilizes advanced ring-forming equipment and in-house heat treatment facilities to ensure the highest standards of quality. - Shaft Bearing Division
Specializing in integral shaft bearings, this division manufactures high-quality bearings used in automotive applications. With a commercial production capacity of 3.9 million units annually, RPAL’s water pump bearings are a key product line, ensuring the smooth operation of water pumps by facilitating coolant circulation in engines. The division has garnered international recognition for its bearings, which are widely exported to markets including the US, Brazil, Europe, and Thailand. - Flexplate Division
Located within the Starter Gear Division, the Flexplate Division produces metal discs that connect the engine’s output to the input of a torque converter in automatic transmission systems. The division uses sophisticated manufacturing lines and stringent process controls, with an installed capacity of 500,000 units annually. The division is expanding capacity to meet increasing demand, while also offering complete design solutions using advanced CAE software.
3. Financial Highlights of Ring Plus Aqua Unlisted Shares
- Revenue Growth: Ring Plus Aqua Ltd. has shown significant revenue growth over the past few years. In 2024, the company reported a revenue of ₹431 crores, up from ₹375 crores in 2023 and ₹312.01 crores in 2022. This growth is attributed to an increase in global demand for the company’s automotive components and its expansion into new markets.
- Gross Margins: The company has consistently maintained strong gross margins, reporting 59.4% in 2024, 58.67% in 2023, and 60.24% in 2022. This demonstrates the company’s ability to manage production costs effectively while delivering high-quality products.
- EBITDA and Operating Margins: Ring Plus Aqua saw a substantial increase in EBITDA, reaching ₹85 crores in 2024, compared to ₹62 crores in 2023 and ₹50.97 crores in 2022. The Operating Profit Margin (OPM) also improved, increasing from 16.53% in 2023 to 19.72% in 2024, indicating better operational efficiency.
- Net Profit: The Net Profit (PAT) for 2024 was ₹51 crores, showing a solid increase from ₹39 crores in 2023. This growth reflects the company’s strong financial management and efficient cost control, despite rising raw material costs.
- Earnings Per Share (EPS): The EPS of RPAL improved to ₹65.81 in 2024, up from ₹50.32 in 2023 and ₹49.97 in 2022, indicating consistent growth in shareholder value. This is a positive indicator for investors considering Ring Plus Aqua Unlisted Shares as an investment option.
Pros
- Strong market presence in the automotive sector.
- Ongoing expansion of manufacturing capabilities.
- Stable inventory levels despite minor turnover decrease.
Cons
- High borrowings increased from ₹7 crores to ₹602 crores in 2024.
- Heavy dependence on the volatile automotive industry.
- Rising raw material costs impacting profit margins.
