Content

  1. 1Ring Plus Aqua Essentials
    1. 1.1 Ring Plus Aqua ISIN
    2. 1.2 Ring Plus Aqua Face Value
    3. 1.3 Ring Plus Aqua Total Share
    4. 1.4 Ring Plus Aqua Total Income
    5. 1.5 Ring Plus Aqua Profit After Tax
    6. 1.6 Ring Plus Aqua Promoter Holding
    7. 1.7 Ring Plus Aqua EPS
    8. 1.8 Ring Plus Aqua P/E
    9. 1.9 Ring Plus Aqua P/B
    10. 2.0 Ring Plus Aqua Market Capitalisation
    11. 2.1 Ring Plus Aqua Enterprise Value
    12. 2.2 Ring Plus Aqua Book Value
    13. 2.3 Ring Plus Aqua Intrinsic Value
    14. 2.4 Ring Plus Aqua Earnings Yield
    15. 2.5 Ring Plus Aqua Dividend Yield
    16. 2.6 Ring Plus Aqua Sector
    17. 2.7 Ring Plus Aqua Sub-sector
    18. 2.8 Ring Plus Aqua Category
    19. 2.9 Ring Plus Aqua Cashflow - Operations
    20. 3.0 Ring Plus Aqua Cashflow - Financing
  2. 2Ring Plus Aqua Growth
    1. 2.1 Ring Plus Aqua Compounded Sales Growth
    2. 2.2 Ring Plus Aqua Compounded Profit Growth
    3. 2.3 Ring Plus Aqua Return On Equity
  3. 3 About Ring Plus Aqua
  4. 4 Ring Plus Aqua IPO Details
  5. 5 Ring Plus Aqua Funding
  6. 6 Ring Plus Aqua Merger & Acquisition
    1. 6.1 Ring Plus Aqua Merger
    2. 6.2 Ring Plus Aqua Acquisition
    3. 6.3 Ring Plus Aqua Investments
  7. 7 Ring Plus Aqua Subsidiaries
  8. 8 Ring Plus Aqua Business Model
  9. 9 Ring Plus Aqua Revenue Segmentation
  10. 10 Ring Plus Aqua Product & Services
  11. 11 Ring Plus Aqua Assets
  12. 12 Ring Plus Aqua Industry Overview
    1. 12.1 Ring Plus Aqua Industry Statistics
    2. 12.2 Ring Plus Aqua Future Prospects
    3. 12.3 Ring Plus Aqua Government Initiatives
  13. 13 Ring Plus Aqua Awards & Achievements
  14. 14 Ring Plus Aqua SWOT
    1. 14.1 Ring Plus Aqua Strengths
    2. 14.2 Ring Plus Aqua Shortcomings
    3. 14.3 Ring Plus Aqua Opportunities
    4. 14.4 Ring Plus Aqua Government Threats
  15. 15 Ring Plus Aqua Rating
  16. 16 Ring Plus Aqua Detail Info

Ring Plus Aqua Essentials

Discover and get complete analysis on Ring Plus Aqua upcoming IPO unlisted shares - Ring Plus Aqua Management, Business Model, Financials, Growth, Valuations, Funding Rounds, Ring Plus Aqua News and latest updates.

ISIN

INE093H01012

Face Value

₹10.00

Total Share

78,68,618

Total Income

₹323.96 Cr

Profit After Tax

₹38.73 Cr

EPS

₹49.93

P/E

9.17

P/B

2.60

Market Capitalisation

₹360.38 Cr

Enterprise Value

₹364.75 Cr

Book Value

₹176.28

Intrinsic Value

₹2,042.52

Dividend Yield

20.31 %

Earnings Yield

10.90 %

Sector

Materials

Sub-sector

Auto Parts

Category

Micro Cap

Cashflow - Operations

₹38.88 Cr

Cashflow - Financing

-₹73.91 Cr

Ring Plus Aqua Growth

Compounded Sales Growth

  • 58.13%

    1 Year

  • 9.42%

    4 Year

  • 11.00%

    6 Year

Pro Only

Compounded Profit Growth

  • 71.99%

    1 Year

  • 9.85%

    4 Year

  • -0.26%

    6 Year

Pro Only

Return On Equity

  • 27.92%

    2022

  • 37.65%

    2019

  • 16.32%

    2017

Pro Only

About Ring Plus Aqua

  • Ring Plus Aqua Limited is a leading auto-component manufacturer with history of 30+ years and a strong global presence. Ring Plus Aqua Limited manufactures products for automotive, industrial, agricultural, and marine OEMs in India and internationally. Its product line includes ring gears, water pump/integral shaft bearings, flexplates, sheet metal pulleys, and machined components.
  • The company offers flywheel starter ring gears for petrol, diesel, and gas engines in passenger cars, trucks, earth moving equipment, power generators, tractors, and marine engines; integral shaft bearings in ball/ball and ball/roller configuration for automotive application; and heavy duty flexplates, which are used in racing cars.
  • Its portfolio includes a range of sheet metal components, including pulleys and pulley-bracket assemblies; engine, transmission, and air conditioning system components; water pump components; and light and heavy gauge precision stampings. 
  • Incorporated in 1984, the Ring Plus Aqua Ltd., is a pioneer in manufacturing automotive components like starter gears, water pump bearings, flexplates, sheet metal pulleys and machined components. Post that the company, was acquired by the Raymond Limited in the year 2005.
  • It has a long-celebrated history with the global auto industry, with its operation base in Nashik and corporate office in Mumbai, India.
  • The company has three integrated manufacturing facilities located in Nashik for gears and bearings division respectively.
  • It has been doing significant investments to enhance capacity in the flex plates segment over the last few years.
  • The company has been focusing on using technology in manufacturing. Some of the examples are: cutting edge technology in hobbing for improving productivity and speed of process in ring gears, automatic assembly line and 100% online noise testing facility for bearings, high-speed laser welding facility for flexplates.
  • The company has years of logistic experience in supplying to Europe, USA, South America, Japan, China, South East Asia & Australia.
  • Its components are used in passenger vehicle, commercial and light commercial vehicle tractors.
  • On October 31, 2021, Scissors Engineering Products Limited (SEPL) has become a wholly owned subsidiary of JK Files & Engineering Limited. Subsequently, SEPL transferred 89.07% of equity share capital of Ring Plus Aqua Limited (RPAL), the then subsidiary of SEPL to JK Files & Engineering Limited. Accordingly, effective November 11, 2021, RPAL has become a direct subsidiary of JK Files & Engineering Limited. 

  • Ring Plus Aqua IPO Details

The company has expressed no intentions of an initial public offering as of now.


On October 31, 2021, SEPL has become a wholly owned subsidiary of JK Files & Engineering Limited. Subsequently, SEPL transferred 89.07% of equity share capital of Ring Plus Aqua Limited (RPAL), the then subsidiary of SEPL to JK Files & Engineering Limited. Accordingly, effective November 11, 2021, RPAL has become a direct subsidiary of JK Files & Engineering Limited.


RPAL will not witness any further restructuring in the near future due to JK Files raising funds through an IPO. This prevents RPAL from raising funds through an IPO, so investors will find it hard to take an exit from the stock. Therefore, we recommend a sell rating on the stock.

  • Ring Plus Aqua Merger & Acquisition

Merger

  • On September 21, 2016, Neel Metals Products Limited entered into a share purchase agreement to acquire 50% stake in Rose Engineered Products India Private Limited from Ring Plus Aqua Limited for an enterprise value of approximately Rs. 200 mil. Under the terms of the agreement, 10.4 mil shares will be acquired by Neel Metals. Rose Engineered Product India Private Limited is a 50:50 joint venture between the highly diversified Raymond Group's Ring Plus Aqua Ltd. and A.J. Rose Manufacturing Co., a leader in the manufacture of precision formed metal products and assemblies in the US.

Acquisition

  • On January 5, 2012 Ring Plus Aqua Ltd. entered into a definitive share purchase agreement to acquire 78% stake in Trinity India Limited from Trinity India's promoters for approximately Rs 540 mil. The deal was funded through internal accruals.This deal marks Ring Plus Aqua's entry into the forging industry, adding to its current portfolio of auto components. This move significantly strengthens the Ring Plus Aqua's position in the global automotive power train domain. Later on May 9, 2014 Ring plus aqua acquired remaining 7.76% stake in Trinity India. 
  • On September 21, 2016, Neel Metals Products Limited entered into a share purchase agreement to acquire 50% stake in Rose Engineered Products India Private Limited from Ring Plus Aqua Limited for an enterprise value of approximately Rs. 200 mil. Under the terms of the agreement, 10.4 mil shares will be acquired by Neel Metals. Rose Engineered Product India Private Limited is a 50:50 joint venture between the highly diversified Raymond Group's Ring Plus Aqua Ltd. and A.J. Rose Manufacturing Co., a leader in the manufacture of precision formed metal products and assemblies in the US.
  • Ring Plus Aqua Subsidiaries

  • JK Files (India) Limited
  • JK Talabot Limited
  • Silver Spark Apparel Limited
  • Dress Master Apparel Private Limited

Ring Plus Aqua Business Model

  • Ring Plus Aqua commands highest volume share of over 50% in the domestic passenger vehicle (“PV”) industry and over 45% in the domestic commercial vehicle (“CV”) industry in terms of supply to original equipment manufacturers (“OEMs”) for domestic production in Fiscal 2021. It is amongst the key players in the Ring Gears industry globally.


  • By leveraging long-term presence in tailor-made ring gears and long-standing relationships with OEMs and Tier-1 suppliers to OEMs, the business has been able to develop a strong presence in the manufacturing of Flexplates. RPAL is the sole domestic manufacturer of flexplates in India and catered to over 25% of the flexplates volume demand for PV domestic production in FY21.
  • Ring Plus Aqua Revenue Segmentation

  • Flex Plates
  • Flywheel Starter Ring gears
  • Water Pump Bearings
  • Export Incentive
  • Process Waste Sales
  • Other
  • Other Income
  • you
  • Ring Plus Aqua Product & Services

  • Ring gears
  • Flex plates
  • Shaft bearings
  • Ring Plus Aqua Assets

Assets of the company as on 31st March 2022


ParticularsAmount in Rs. Cr.
Buildings18.40
Plant & Equipment's48.86
Furniture & Fixtures0.25
Office Equipment's0.04
Computers0.38
Vehicles1.33


  • Ring Plus Aqua Industry Overview

Industry Statistics

  • The industry can be broadly classified into organised and unorganised sectors. The organised sector caters to original equipment manufacturers (OEMs) and consist of high-value precision instruments while the unorganised sector comprises low-valued products and caters mostly to the aftermarket category. The automotive aftermarket is the secondary market of the automotive industry, concerned with the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, chemicals, equipment, and accessories.
  • The Indian auto-components industry has experienced healthy growth over the last few years. The auto-components industry expanded by a CAGR of 3.28% over FY16 to FY20 to reach US$ 45.90 billion in FY21. The industry is expected to reach US$ 200 billion by FY26.
  • Auto-components industry account for 2.3% of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly. A stable government framework, increased purchasing power, large domestic market, and an ever-increasing development in infrastructure have made India a favourable destination for investment
  • Due to high development prospects in all segments of the vehicle industry, the auto component sector is expected to rise by double digits in FY22.
  • Growing working population and expanding middle class are expected to remain key demand drivers. Reduction in excise duties in motor vehicles sector will spur the demand for auto components. By 2025, 4 million of EVs could be sold each year and 10 million by 2030. The market is expected to reach US$ 206 billion.
  • India is emerging as a global hub for auto component sourcing and the industry exports over 25% of its production annually. Auto component exports are expected to grow at 23.9% annually to reach US$ 80 billion by 2026. India has a competitive advantage in auto components categories such as shafts, bearings and fasteners due to large number of players.

Future Prospects

  • As per Automobile Component Manufacturers Association (ACMA), automobile component export from India is expected to reach US$ 80 billion by 2026. The Indian auto component industry aims to achieve US$ 200 billion in revenue by 2026. 
  • As prosperity grows, consumption rises—India’s consuming class is expected to expand from 27 millions households in 2014 to 89 millions households by 2025. The automotive industry is also expected to flourish, with the burgeoning consumer class investing in more and better vehicles across segments to serve their rising mobility needs.
  • Strong international demand and resurgence in the local original equipment and aftermarket segments are predicted to help the Indian auto component industry grow by 20-23% in FY22.
  • The rapidly globalising world is opening newer opportunities for the transportation industry, especially while it makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe, and reliable mode of transportation. Over the next decade, this will lead to newer verticals and opportunities for auto-component manufacturers, who would need to adapt change via systematic R&D.

Government Initiatives

  • Government policies like Make in India, Automotive Mission Plan, and National Automotive Testing and R&D Infrastructure Project (NATRIP) have also had a positive impact on the market.
  • In November 2020, the Union Cabinet approved PLI scheme in automobile and auto components with an approved financial outlay over a five-year period of Rs. 57,042 crore (US$ 8.1 billion). In September 2021, the Indian government issued notification regarding a PLI scheme for automobile and auto components worth Rs. 25,938 crore (US$ 3.49 billion). This scheme is expected to bring investments of >Rs. 42,500 (US$ 5.74 billion) by 2026.
  • In March 2021, the government announced to offer fresh incentives to companies making electric vehicles (EVs) as part of a broad auto sector scheme. The scheme is expected to attract US$ 14 billion of investment in the next five years.
  • Government has come out with Automotive Mission Plan (AMP) 2016-26 which will help the automotive industry to grow and will benefit Indian economy in the following ways: - Contribution of auto industry in the country’s GDP will rise to over 12%. Around 65 million incremental number of direct and indirect jobs will be created. End of life policy will be implemented for old vehicles.

Ring Plus Aqua Awards & Achievements

  • It won the EEPC Export Excellence award in the year 2019.
  • RPAL won the coveted Export Excellence Bronze Award in a large category from ACMA for its superlative export performance in FY18 (30% + growth).
  • It won the coveted Export Excellence Award in the large category – western region from EEPC for its superlative export performance in FY17.
  • Star performer in the category of automobile for your outstanding performance (in the year 2013-14).
  • RPAL was awarded as EEPC star performer for outstanding export performance in 2012-13.

Ring Plus Aqua Strengths

  • The company have made efforts towards technology absorption in their gear and bearing divisions.
  • The company has strong relationships with domestic and international OEMs, such as BMW, Ford, Maruti Suzuki, Hyundai, Honda, Tata Motors, Mahindra & Mahindra, Cummins, VECV, Caterpillar, and Fiat, among others.
  • The company’s presence in major industry segments such as automotive, industrial application, agricultural application & marine application generates economies of scale for the company.

Ring Plus Aqua Shortcomings

  • Their product sales are totally reliant on physical sales channels, and they have no internet sales channels through which they can attract or generate a lead for small manufactures/new market players.
  • In FY22, the company did not adapt to any foreign technology to increase efficiencies and economies of scale, nor did it spend any money on research and development, which is crucial in a modern industry like this.

Ring Plus Aqua Opportunities

  • Anticipation of a growing consumer class enhanced ease of doing business, expanding infrastructure—such favourable factors could propel the Indian automobile industry forward. Adjacent industries like aerospace, defence and agricultural machinery are evolving into a promising new market for Indian auto component manufacturers.
  • In addition, the agricultural machinery market is also expected to grow. The current market is restricted by the high percentage of unorganized retail, use of low-value machines for harvesting and high reliability on labour.
  • The government’s drive to mechanize agricultural land under its mission on Agricultural Mechanization could amplify the demand for sophisticated machinery. This would in turn prompt the demand for components in sub-segments like thrashers, rotavators, precision agriculture solutions and tractor linkage parts etc.

Ring Plus Aqua Threats

  • Constantly shifting market dynamics due to changing manufacturing locales, customer demands, operating models and priorities is a big challenge for the company.
  • Technological improvements and discontinuities are already starting to change revenue pools, trigger new competition and invite new forms of cooperation.
  • Evolving and increasingly stringent regulations could prompt changing expectations from auto component manufacturers, who might need to rethink their component production to comply with regulatory and other guidelines, such as :-
     For emissions: enforcement of BS-VI norms by 2020, discussions on methanol, CNG.
     For safety: mandatory ABS (Anti-Lock Braking System) on cars, buses and two-wheelers.
  • The rise of tariff and non-tariff protection (stringent testing, quality-related barriers), the existence or lack of free trade agreements with certain countries, and other political concerns could impact the business performance of these companies.
Ring Plus Aqua Rating

  • RECOMMENDATION

    Neutral

  • Ring Plus Aqua Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

02/07/2022

Registered Date

11/09/1986

Planify Ticker

RPAL

Reg Office: D-3/4, STICE, At post – Musalgaon, Tal-Sinnar, Dist. Nashik – 422112, India

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