wondering why the stock priced jumped today, don’t see any announcements from the company.
General small cap euphoria probably. Many companies have been having random spurts. Wouldn’t read too much into it.
Thanks for your response the other day. I took a small position now that the experience zone is up and running and an EV order is in. My thesis is on the warehouse piece though. If their solution is good, it can see big operating leverage playing out. Warehouse optimization solutions are semi SaaS like, asset light and scalable very quickly once they gain traction.
And at sub 150cr valuation, downside seems protected unless they go bust.
Will go to the experience center whenever I drive to Pune next.
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Pleasure!!!
I too am interested in the warehouse automation piece, also got attracted due to Vijay Kedia making an investment frankly…I like his SMILE framework…however, in the last concall, the mgmt seemed gung-ho about 10/15 min delivery business and were claiming that their WH solution is suitable in that scenario too. I did not think high of that business model (10 and 15 min delivery). Its like forcibly telling customers you need it, just because we came up with it (and burned piles of cash). BB guys early on were skeptical of it right from start, and now the cos that came up with it are also withdrawing from it.
Anyhow, I hope their WH solution is attractive enough for e-comm players, if its clicks, we’d chuckle 
3 days continuous price rise supported by volume spike…I generally dont focus on such things, but caught my eye, of course liquidity in this stock is always low so even a small increase in demand will give such outcome…but wondering why there is demand???
Yes, unfortunately there is no new information. The delivery numbers yesterday and day before are high, 77% and 82% respectively - totaling to a little over 1 lakh shares. There are only about 20 lakh shares being traded (removing the promotor and large individual investor holdings), so it is likely that someone is building a large position.
This is the quickest up move I have seen on any position personally, 36% in a week since buying, so I’ll be honest I am a bit tempted to book out and see what happens. Will resist the temptation for as long as possible, and hope some more information comes to light soon through some disclosures. Lets see.
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Hey Guys
This is my first post on this forum.
Little bit about my background, i work in the field of Computer Vision for Manufacturing Industry, where we use AI (Machine Learning, Deep Learning etc) for defect identification. So, i think i have bit of professional background to contribute on this thread. This sector and AI in general, is very dynamic, where new stuff is coming up every six months, be it better Algorithms, Sensors, other hardware like edge devices etc. There are couple of factors which should help us better evaluate this company’s future prospects.
- R&D Spend. Employees need access to latest Hardware, Sensors so that they are always up to date.
- Employees education background, like are they from IITs, NITs etc.
- Company CEO should be dynamic, well educated (like IITs, or MS from top US Univ etc) , who can guide not only employees but customers and clients as well. I have worked in a company where we had our CEO just like that.
Basically to succeed in the field of Robotics, you need A-level guys who can deliver to the clients.
Now, coming back to the Affordable robotics, i checked the glassdoor rating for this company and found it to be unimpressive. Employees are reporting delayed salary for like 2-3 months, which not only keep talent away from joining the company but also demotivates existing ones as well. How can a company satisfy it’s clients if it’s employees are demotivated.
In these times, glassdoor ratings play a huge role in attracting talent, which matters alot for company in this field especially. Before joining a company, one always looks at glassdoor ratings to validate his/her choice, and now a days, good talent most certainly has multiple options for employment. If the company has poor ratings and red flags like delayed salary, for sure company won’t have the essential raw material they need for more production, i.e. talent.
Disc: Not invested
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Thanks for your post. Do you think the salary delay reviews could be linked to FY 2021 and FY 2022. The company is not a big one, and the pandemic years could be tough for the company as well as their employees. Not a good situation for either though.
And now if their business is coming back on track, (hopefully) the salary issue gets resolved. Maybe this question can be asked in the concall.
The buying has stopped now. I have a hunch that the buying could be by some who knew the date of Annual Report release. Or maybe I am reading too much?
This could be a possibility.
However, I have noted some more additional observations.
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No professional email or phone number for sales enquiry. Looks bit unprofessional.
I was expecting something like sales@arapl.co.in -
In their latest concall, they mentioned they have been working on car parking automation since 2014, but they had nothing to show in terms of actual footage or images showing their product in action. Even on their website product section, car parking takes you to a very rusty video, which won’t just cut for a potential sales pitch.
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Management seems to be using latest jargons to entice customers or innocent retail investors with terms like AI/ML, Robotics as a service, 15 Min delivery, which they know are very much in demand as well as hype.
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I searched for their employees on Linkedin and couldn’t find any engineer from Computer Science background. Majority of them are Mechanical engineers and other managerial roles, and Mechanical guys are mainly design or PLC engineers. Robotics is a field of computer science, which involves maths and low level programming for control. If one wants to see how should a robotics company looks like on their website or linkedin, checkout GreyOrange, it’s an Indian company based out in Gurgaon.
In short, by looking at their website, social media presence on linkedin, their employee education qualifications, it doesn’t appear that this company would go anywhere.
Please have a hard look at it again and consider your options.
Disc: This is my personal opinion, i may be wrong. Not Invested
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I was going through their latest Annual Report and noticed some additional points which might be useful for others.
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Company has a new CEO, who is 71 Years old and has no past experience with the field of Robotics. Why would a tech company hire a new CEO who is in later stage of his life is beyond me ? How can he inspire and match up with the energy of his young colleagues ?
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Compensation of CFO is 13 lacs, whereas for MD it’s 84 lacs. Even a decently experienced CA would expect more than that. There can be two possibilities for this, either CFO is working part-time, thus having additional side income to cover his expenses or this is the best he can get in the industry.
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Salary for MD is large as compared to the kind of numbers business is generating. 84 lacs for 81 cr total sales is on the higher side.
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In year 2020 and 2021, Material Cost is 0%, Mfg Cost is 69% and in year 2022, Mfg cost is 0% and Material cost is 62%. This is a major change in expense pattern, closer look at this might explain how company is generating sales.
Disc: Not invested
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Rare news 
about the company. Seems Raas is slowly but steadily taking off.
https://www.apnnews.com/arapl-launches-its-arapl-raas-solution/
ensures that the initial investment a business makes in their ARAPL RaaS offering is recovered in the next 1 to 2 years of investment.
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Anyone tracking this company?
At CMP - 483, its P/E - 228
Don’t you think its very high??
@karanthharsha999
Can you mention the email id in which you had mailed the questions to the company.
Hi,
The mail mentioned on their website
rahul@arapl.co.in
There revenue target for FY 24 is 200 cr i.e growth of 77% on base of FY 23. If we assume the PAT margin of 15% on a base case scenario they can do a 30 cr PAT which turns out to be 1 yr forward PE of 16 roughly. However to note that this is purely dependant on how well the management is able to execute. There guidance is quite bullish but execution is still to be seen. Additionally they have hired around 50 professionals to devise co’s future growth plan and expansion in US. So we have to be cautious of the fact that in case this does’nt pans out well then derating can be severe from the current levels.
Disclosure - have a tracking position
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They are guiding for 34% EBITDA margins right? So PAT should be 40crs
Initially i assume that the selling and distribution expenses to be a bit elevated as its in expansion mode along with the depriciation on the robos and machinary which will depress the PAT margins. So conservatively assuming 15%, athough it may inch up to 18-20% as they expand. In case they are able to deliver on there promise then market would surely react positively and upgrade the valuation. But till then its a wait and watch per my opinion. I may be completely wrong in my assumtions but its ultimately a probablistic game.
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I had a look at this company last year. But, when I listened to one of the concall, they were mentioning about venturing into edtech with their robotics tech. Didn’t like it as it seemed like they were going after the hype of edtech and were diworsifying as Peter Lynch would say.
Just putting it out for others to dig in further. Haven’t been tracking this lately.
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32 - 34% blended margin guidance is for gross margin…31 mins in the video recording
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