Vijay Kedia backed micro-cap stock secures Rs 38 crore funding

Affordable Robotic and Automation Limited (ARAPL) subsidiary, Arapl RaaS, has secured a significant investment of Rs 38 crore from its parent company. This funding is part of a larger Rs 48 crore rights issue and signifies strong support for Arapl RaaS’s growth plans. The capital will be used to fuel revenue generation, particularly in the lucrative USA market. A substantial portion will be allocated to working capital and technology infrastructure upgrades to stay competitive in the rapidly evolving autonomous vehicle and robotic solutions landscape.

To strengthen its technological capabilities and market reach, Arapl RaaS has also appointed a new CTO with 14 years of experience in autonomous vehicles and Advanced Driver Assistance Systems (ADAS). He will lead the company’s technological advancements, focusing on developing indigenous software modules for navigation, mapping, perception, and fleet management. Additionally, a new tech development office will be established in Gurgaon with a 30-member team.

Looking beyond warehouse automation, Arapl RaaS plans to develop an in-house controller and powertrain for its robots. This strategic move will not only enhance self-reliance but also open up new revenue streams in the broader electric vehicle market, including electric forklifts, pallet jacks, and other indoor electric vehicles.

Financial Performance

In H1FY24, the company posted a 136.06% increase in its consolidated revenue at Rs 42.81 crore compared to Rs 18.14 crore from the previous year’s corresponding quarter. The operating profit of the company stood at a loss of Rs 4.61 crore, while the PAT of the company stood at a loss of Rs 6.79 crore, from a loss of Rs 8.56 crore last year’s same quarter.

Business Overview

Affordable Robotic and Automation Limited is a turnkey automation solution provider for all kinds of industrial automation needs such as line automation, assembly lines, conveyors, robotic inspection stations, pick & place systems, gantry, auto assembly stations, etc.

Stock Price Movement

Today, the stock opened at Rs 436.00, with a high and low of Rs 452.55 and Rs 436.00, respectively. The stock is currently trading at Rs 440.10, which increased by 0.95%. The stock has a 52-week high of Rs 851.04 and a 52-week low of Rs 290.58. The company has an ROCE of 7.74% and an ROE of 3.83, with a market capitalization of Rs 498 crore.

The Affordable Robotic & Automation Share Price has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.