RM Drip & Sprinklers Systems Ltd is an India-based company incorporated in 1996 that specializes in designing and manufacturing micro irrigation equipment and components. The company, which has its registered office in Gat No.475 Village Gonde, Taluka Sinnar, Nashik, Maharashtra, was founded in 1994.
The company is an Original Equipment supplier to numerous irrigation companies and various irrigation sub-assembly manufacturers. RM Drip & Sprinklers Systems Limited is an ISI certified company, engaged in the manufacture and sale of Micro Irrigation Systems (MIS), primarily consisting of Drip Irrigation Systems and Sprinkler Irrigation Systems. They produce world-class micro irrigation equipment within their factory, adhering to high-quality standards. The company assists farmers in designing and installing these systems and filters according to their specific agricultural needs.
The company operates extensively in the micro irrigation sector, offering a comprehensive product range aimed at enhancing agricultural productivity and water efficiency.
The company's core product categories include:
- Drip Irrigation Systems: Featuring online drip openable threaded drippers, flat drip-smart lines, online drip laterals, and pressure compensating (PC) drippers.
- Sprinkler Irrigation Systems: Including RM sprinklers, and RM mini and micro sprinklers.
- Filters: Offering plastic disc filters, sand/gravel media filters, fertilizer injectors, fertigation tanks, and hydro-cyclone filters.
- HDPE Pipes: These are also part of their product portfolio, often used in conjunction with their irrigation systems.
Beyond manufacturing and sales, RM Drip & Sprinklers Systems Ltd also undertakes the supply and installation of micro irrigation systems and provides agronomical services to farmers. By customizing MIS for each farm, considering factors like water source, terrain, crop type, and climatic conditions, the company effectively adapts to the evolving needs of its target markets.
RM Drip & Sprinklers Systems Ltd has established a robust market presence across several Indian states. The company's dealer network spans Maharashtra, Madhya Pradesh, Gujarat, Karnataka, and has expanded its reach to Uttar Pradesh, Bihar, Jharkhand, and Tripura.
Some of their major customers include the Assistant Director of Agriculture, Prashant Hardware, MP State Agro Development Corp. Ltd., and Mohiniraj Irrigators, Osmanabad. Through their channel partners and dealers, the company ensures comprehensive after-sales services, including the supply of spare parts, which significantly contributes to customer satisfaction. The company's manufacturing unit is strategically located at Sinnar, Nashik, facilitating efficient production and distribution.
The company was originally incorporated as "R.M. Drip & Sprinklers Systems Private Limited" on December 20, 2004. It later converted into a Public Limited Company, changing its name to "R M Drip and Sprinklers Systems Limited" on June 27, 2017.
Key Leadership:
- Vijaykumar Kshirsagar: Founder and Promoter, bringing over two decades of experience in the marketing and manufacturing of drip irrigation systems, sprinkler irrigation systems, and related products. He has been a pivotal advisor since the company's inception.
- Mr. Nivrutti Pandurang Kedar: The current Managing Director. Mr. Kedar, also a promoter, holds 10.85% of the total equity.
In September 2017, the company successfully launched an IPO, raising equity funds of ₹11.45 Crore through a Fresh Issue of 2,010,000 Equity Shares. This marked its transformation into a renowned Public Limited Enterprise in the micro irrigation business. The stock trades on the National Stock Exchange (NSE) under the symbol RMDRIP and has a face value of ₹10.
Recent Stock Performance Highlights:
- Market Capitalization: ₹1,486 crore (as of recent data).
- One-Year Increase: 297% increase in market capitalization.
- Share Price Growth (6 months): 84.63%.
- Share Price Growth (1 year): 214.22%.
- 52-Week High: ₹563.65.
- 52-Week Low: ₹122.50.
The company has demonstrated robust financial performance in recent periods, showcasing strong profitability and operational efficiency.
Key Financial Metrics:
- Revenue: ₹130 crore
- Profit: ₹23.9 crore
- Market Capitalization: ₹1,486 crore (as of recent data)
- P/E Ratio: 62.1
- Book Value: ₹32.0
- ROCE (Return on Capital Employed): 44.6%
- ROE (Return on Equity): 39.7%
Despite consistently reporting profits, the company has not paid out dividends. Promoter holding has seen a decrease of 42.5% over the last three years, with the current promoter holding standing at 17.8%. The stock is currently trading at 18.6 times its book value.
In 2020-21, RM Drip & Sprinklers Systems Ltd expanded its business activities to include the manufacturing of PVC Pipes, which are integral components used in Drip & Sprinkler Systems. This strategic diversification into complementary products demonstrates the company's commitment to broadening its product portfolio and capturing greater value within the irrigation ecosystem.
The company continues to prioritize innovation and product quality, solidifying its position as a key player in India's micro irrigation industry. With a growing global and national emphasis on water conservation and efficient agricultural practices, RM Drip & Sprinklers Systems Ltd is well-positioned to capitalize on the increasing demand for advanced irrigation solutions in the Indian agricultural sector.
