Rapicut Carbides Ltd ..... niche player in Non Ferrous metal sector

Today I am expressing my view in one of the micro cap company from Non Ferrous metal sector ..... Rapicut Carbides Ltd.

Company

Rapicut Carbides Limited (RCL) was incorporated as a Public Limited Company, in April 1977, and an integrated unit was set up at Ankleshwar, Gujarat for manufacturing of Tungsten Carbide Tips, Inserts and other Carbide products from ore stage. Commercial Production Commenced in October 1979.
RCL today manufactures a wide range of Tungsten Carbide (T.C.) Products viz., Tungsten Carbide Tips, Tungsten Carbide Inserts, Wire Drawing Nibs, Bar and Tube drawing Pellets, Tungsten Carbide Rings, Flats, Bushes, Jute Eyelets, Solid Carbide Cutters and a wide range of Tool Room Products.

Research and Development

Manufacturing quality products means setting standards. To adhere to these standards, all the processes have to be under the purview of trained eyes. To Constantly upgrade the efficiency and quality of its products, RCL taps the potential of its in-house Research & Development facility. RCL's Centralized Research & Development department is equipped with advanced data processing equipment to facilitate material composition analysis and various other tests.
   

Quality Control
 

It is to be noted that the most important factor in obtaining quality Tips and Inserts is controlling the physical and chemical properties at every stage of operation. The chemical lab has facilities to analyze the impurity levels present in Tungsten Tri Oxide, Tungsten Metal and Tungsten Carbide. The physical laboratory has facilities to check the micro-structure, hardness, specific gravity, coercive force, transverse rupture strength, porosity etc., of the sintered products, The rigid quality control at RCL has enabled it to meet the exact requirements of Engineering Industry. RCL is an ISO 9001 : 2000 Certified Company (by RWTUV)

   

Products

Rapicut has wide range of products such as MINING , WEAR PARTS, METAL CUTTING, POWDER, as well FINISHED PRODUCT.

Clients

Some of Prominent Clients or RCL are….

PRP Granites, Lupin Limited, Hind Associates, B.R.Machine Tools, P.S.K.S & Company, Bundy India Limited, Forbes Gokak Limited, Greaves Cotton Limited, Godrej Industries Limited, Tata Steel, Electro Steel Castings Limited, SAIL, BHEL, Neyveli Lignite Corporation Limited, Hindustan Platinum Private Limited, Birla NGK Insulators Private Limited, Mineral Exploration Corporation Limited, Sanghavi Shoe Accessories Pvt. Limited, Jamshedpur Engg. & Machine Mfg. Company, Weatherford Drilling & Production Services (India) Pvt. Limited.

Outlook

Promoter hold 35.26% stake of company. Company is steady dividend payer and Bonus in ratio of 3:2 has been declared in 2013. Last nine months top lines and bottom line reported by company is 31.53 cr and 2.2 cr respectively compare to last full year 33.45 cr and 1.45 cr.

Company is available at just 43.43 cr market cap and compare to peers negative or neglible operating margin it has OPM of 14.04%.  Stock is available at Rs. 80.85 and listed only in BSE.

Disc: holding few quantity of stock

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”