Rappid Valves (India) Limited
Company
| Website 🔗 |  |
| Business Activity | Manufacture |
| Division | Industrial valves |
| Sub-class | Ball valves, Gate valves, Globe valves, Check valves |
| Location | Kolgaon, Maharashtra |
| Establishment Year | 2002 |
Management
| Managing Director | Gaurav Vijay Dalal |
| Educational Qualifications | Bachelor’s Program in Mechanical Engineering, Diploma Certificate in Mechanical Engineering |
| Experience | 22 years of overall work experience in the valve manufacturing industry |
| Annual Salary | ₹ 48 Lakhs |
| Total Number of Employees | 47 |
About
Rappid Valves (India) Limited, is an engineering company that specializes in manufacturing valve solutions.
Products and Services:
Valves are devices that regulate, direct, or control the flow of a fluid (gases, liquids, fluidized solids, or slurries) by opening, closing, or partially obstructing various passageways. The company manufactures a variety of valves such as:
- Ball valves
- Gate valves
- Globe valves
- Butterfly valves
- Check valves
- Double block valves
- Strainer valves
- Marine valves
The valves are manufactured using ferrous and non-ferrous materials and come in sizes ranging from 15mm to 600mm. The company also manufactures actuator packages that enable remote control of the valves.
Clients:
- Ethanol & Breweries
- EPC
- OEM
- Marine
- Shipbuilding
- Chemicals and Process Industries
The company has a pan-India presence with a clientele base in 18 states and 1 union territory for its domestic market.
Raw Materials:
- Metal castings (ferrous and non-ferrous)
Suppliers:
- Foundries in Maharashtra and Gujarat
Other Key Aspects:
Quality and Reliability
- The company has been accredited with various quality certifications such as ISO 9001:2015, 14001:2015, and ISO 45001: 2018.
- The company is IBR-approved and API607 fire-safe design Ball Valves and has Type approvals for various marine valves.
- The company’s products meet the stringent requirements of today’s flow control Industry, with quality and reliability being an integral part of their practice and culture.
Manufacturing Process Flowchart
Revenue – Category
Revenue – Region
Audit and Legal
Auditor’s Remarks:
The auditors have issued an unqualified opinion on the company’s financial statements
Non-Compliances and Other Issues:
Misplaced Corporate Records:
The company has not been able to locate copies of certain of its corporate records and physical forms filed with the ROC (Registrar of Companies).
Non-Compliances:
There have been some instances of delays/non-filings/non-compliance with certain statutory authorities in the past.
Contingent Liabilities:
There were no contingent liabilities on the company at the end of FY 2024.
Legal Cases:
Tax Proceedings against the Company:
Case Type: GST Related
Details: The company received a show-cause-cum-demand notice for the period July 2017 to March 2019 due to differences in GSTR-2A and GSTR-3B (tax forms). The total amount in dispute is Rs. 3,42,648.
Case Type: Income Tax Related
Details: The company received a demand notice for the fiscal year 2020-21, raising a demand of Rs. 2,05,350. The company disputed the demand, but as per the details available, an amount of Rs. 62,800, in addition to an interest of Rs. 31,825, is pending to be paid by the company.
SWOT Analysis
Strengths
| The company has a technologically advanced and well-suited manufacturing facility required for valve manufacturing. |
| The company is flexible in accepting new changes and updating its business operations to match market dynamics. |
| Well-established relationships with clients and suppliers. |
| Strong presence and technical expertise with a preferred brand tag in the marine industry. |
Weaknesses
| High capital investment requirements. |
| Limited number of customers. |
Opportunities
| With limited players in the market, there is an opportunity for the company to become a market leader in the marine valve industry. |
| Diversify sector portfolio. |
| Introduce new products and services. |
| Expand into new geographical areas. |
Threats
| Fluctuations in the metal market can pose a threat to the company’s operations and profitability. It is essential to have sufficient stock in hand to address a sudden surge in metal markets. |
| Competition from other valve manufacturers. |
| Scarce availability of marine valves can lead to import from various countries by competitors, which affects the company’s business operations. |
Porter’s Five Forces1
| Threat of New Entrants | MODERATE |
| The industry requires capital investment and technical expertise, but there are limited players in the market. |
| Bargaining Power of Suppliers | MODERATE |
| The company relies on a network of suppliers for metal castings, but it has a good relationship with them. |
| Bargaining Power of Buyers | HIGH |
| The company depends on a small number of large customers, which gives buyers significant bargaining power. |
| Threat of Substitute Products or Services | HIGH |
| There are no direct substitutes for the company’s products. |
| Rivalry Among Existing Competitors | HIGH |
| The company faces competition from a diverse range of players, including large, established entities. |
Peer Comparison
The company’s performance on various financial and operational metrics compared to its peers for FY 2024 is as follows:
| Metric | Rappid Valves (India) Limited | Atam Valves Limited | Chemtech Industrial Valves Limited | Hawa Engineers Limited |
| Revenue from Operations (₹ in Crores) | 36.51 | 52.60 | 31.38 | 120 |
| Operating Profit Margin (%) | 20.13 | 18.61 | 18.32 | 5 |
| Return on Equity (ROE) (%) | 79.7 | 20.8 | 17.3 | 10.4 |
| Return on Capital Employed (ROCE) (%) | 38.2 | 24.1 | 16.4 | 14.7 |
| Debt to Equity Ratio | 2.20 | 0.41 | 0.13 | 0.89 |
Green Box
The company operates in a growing industry, and its plans for capacity expansion and strategic acquisitions could lead to increased revenue and profitability.
Focus on Innovation:
The company emphasizes research and development (R&D) and innovation, which has enabled it to develop products that meet the stringent requirements of various industries.
IPO Funds:
The objective behind the company’s upcoming issue of shares is to raise funds for the following purposes:
- Funding the capital expenditure for the purchase of new plant machinery and software.
- Covering the expenditure for the renovation of the registered office and existing manufacturing unit.
- Repaying or prepaying all or a portion of the company’s borrowings.
- Pursuing inorganic growth initiatives through acquisitions.
Industry Outlook:
The company operates in the industrial valves industry, which is expected to grow at a CAGR of over 7% during the forecast period (2024-2029). This growth is driven by the increasing demand for valves from water treatment plants, the oil and gas industry, and the power industry.
Amber Box
Capacity Utilization:
Capacity Utilization stands at 85% for FY 2024
Negative Operating Cash Flow:
The company had negative operating cash flow for FY 2024 and 2023.
Red Box
High debt-equity ratio:
The company’s debt-to-equity ratio is relatively high compared to its peers. This means that the company is more leveraged and has a higher risk of managing its finances and maintaining profitability during downtrends.
Customer Concentration:
The top 5 customers contributed 72% of total revenue for FY 2024 indicating severe customer concentration and any loss of these customers can adversely affect the company’s financials.
Images
- The force value of “LOW” is considered good Click Porter’s Five Forces article for more information. ↩︎
Disclaimer: The above information/document is based on publicly available sources and has been issued solely for educational and informational purposes and should not be considered as investment advice or as a Buy/Sell recommendation, or as a research report. Although due diligence has been done to ensure the accuracy of the data presented, the website or authors are not responsible for any decision arising out of an inadvertent mistake or error in the data presented on the website. The authors may also have equity shares in the companies mentioned in this report adhering to provisions of regulation 16 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The investor is advised to consult his/her investment advisor and undertake further due diligence before making any investment decision in the companies mentioned. Authors are not liable for any financial gains or losses due to investments made as per the information provided on this website (StocKernel.com).