“Since signing the agreement, the promoters have paid Rs200 crore and committed to settling the remaining Rs50
crores by the end of November.”

Any update on the same, couldn’t find anything on it? Thank you

@Surender Thanks for your inputs. I believe that the below points may justify your queries.

• Positive displacement pumps market is relatively small: The domestic and global market of centrifugal pumps is very large i.e. Domestic Rs 17k cr and Global market is Rs 2.6lac crore. However the positive displacement pumps market is significant lower i.e. Domestic Rs 1.3k cr and Global market is Rs 25k crore.
• RPL has been manufacturing helical rotor pumps caters to mining company (Coal India). The availability of spare parts was challenging and hence in 1978, it entered into a five-year technical collaboration with Stothert & Pitt to manufacture twin screw pumps and spare parts in India. In Feb.95, RPL signed a technical-cum-buy-back agreement with Kosaka Labs (part of Mitsubishi, Japan) to acquire technology for triple-screw pumps, and to sell double- and triple-screw pumps to Kosaka under the Kosaka Roto brand name. In 1996-97,its earnings from exports amounted to Rs 4.84 cr. The company always focused on positive displacement pumps where the market is small.
• Till 2015, the company manufactures progressive cavity and twin crew pumps. In 2023, the company has started diaphragm, gear pumps downhole and mud motor pumps. Also, by the end of this financial year the company will start manufacturing solar pumps. It seems the company is now aggressively increasing their portfolio.
• The demand for positive displacement pumps is now increasing at faster pace due to the below reasons:
  * Increasing popularity and usage of displacement pumps: The growth of the reciprocating pumps market is majorly driven by their extensive usage in high-pressure, low-flow applications, such as oil & gas, as they generate greater amounts of pressure per operation.
  * Increasing Usage of displacement pumps in food and beverages: Since food processing industries deal with highly viscous fluids and fluids with large particles, the need for positive displacement pumps stands critical to ensure pulse-free, smooth, and hygienic performance.
  * Capacity Expansion and industrialization: Since the industrialization in India is now growing at a faster pace, the demand for positive displacement pumps will increase.
  * Waste Water treatment: Since wastewater is often contaminated and poses a high risk of system failure and clogging, hence positive displacement pumps is highly effective and efficient.

What’s the revenue potential from downhole pumps, mud motors, and Solar Pumps?

• Global market size of downhole pumps, mud motors is Rs 7000cr as on 2022 and expected to grow at 3.6% CAGR.
• Global market size of solar pumps is Rs 20,000cr as on 2022 and expected to grow at 6.9% CAGR.
• Since RPL is 200 cr topline companies at present, the runway is still pretty decent to grow.

In 2015, due to entry of global players they have taken a cost cut and hence the margins declined by 500 basis points. However if you see the below table the margins are much superior than peers.

ROTO/ KSB/ WPIL:

• KSB and WPIL are involved in manufacturing of centrifugal pumps.
• Since ROTO is into positive displacement pumps which is bit complex in nature and more customized in nature the spare parts sales is also much higher and hence the cyclicality is relatively lower.
• Below is the summary of operating margins of the companies in last 9 years:

Sure, please count 5 businesses that have consistently traded at more than 50 P/E for the last 10 years.

Forget about Adani, there is a different story playing out.

BYD Vs Tesla

Thanks for sharing. The GST demand of 85 lacs is peanuts compared to this company’s market cap. I don’t think it will impact anything.