# Robot-Making Firm Wins Major US Contract; Vijay Kedia's Stake in Spotlight
**Posted on November 8, 2025 |
In a boost for India's burgeoning robotics sector, Affordable Robotic & Automation Limited (ARAPL) has clinched a significant order from a leading US-based logistics firm through its American subsidiary. Valued at Rs 4.13 crore ($490,000), the deal marks a key expansion into international markets and has investors buzzing—especially since ace value investor Vijay Kedia holds a notable stake in the company. As global demand for automation surges amid labor shortages and e-commerce booms, this contract could signal ARAPL's breakout moment. With shares showing volatility post-announcement, is this the catalyst for a multibagger rerun in Kedia's portfolio?
### The Deal: Autonomous Robots for US Warehouses
Announced on November 6, 2025, the order was secured by ARAPL RaaS (Humro), ARAPL's wholly-owned US subsidiary, from an undisclosed top-tier logistics player. The initial scope involves supplying six autonomous mobile robots (AMRs)—specifically advanced forklifts—on a two-year lease basis, clocking in at Rs 41.3 million. These robots are engineered for round-the-clock operations, featuring LiDAR-based navigation, real-time obstacle detection, and precision control algorithms. Powered by ARAPL's proprietary i-ware controller, they integrate seamlessly with warehouse management systems (WMS) and ERP platforms, leveraging AI and swarm robotics for optimized efficiency.
The real kicker? Scalability. The contract includes options to ramp up to 47-50 robots across the client's two warehouses, potentially multiplying the order's value several-fold. This maiden US logistics win underscores ARAPL's pivot toward high-margin, recurring revenue models in the $50 billion global AMR market, projected to grow at 40% CAGR through 2030. For Humro, launched in 2023 to tap North American opportunities, it's a validation of its "Robots-as-a-Service" (RaaS) strategy—deploying, maintaining, and upgrading bots without upfront capital outlays for clients.
### Company Snapshot: From SME to Global Contender
Founded in 2009 and headquartered in Pune, ARAPL is a turnkey automation specialist with a sharp focus on the automotive industry, though it serves diverse sectors like general manufacturing and government projects. The company designs, manufactures, and installs robotic welding systems, automated parking solutions, and warehousing tech—boasting over 500 installations worldwide. In FY24, ARAPL reported a robust 43% YoY revenue jump to Rs 84 crore, driven by a 59% surge in its automation segment, with net profit soaring 95% to Rs 12.5 crore.
Listed on BSE SME since 2018 (IPO at Rs 85), ARAPL migrated to the mainboard in October 2025, unlocking broader liquidity and institutional interest. Its market cap now hovers around Rs 283 crore, with a forward P/E of 22x—attractive for a growth story in India's $10 billion robotics ecosystem. Challenges persist, like raw material volatility and competition from giants like ABB and Fanuc, but ARAPL's indigenization push (90% local components) aligns with 'Make in India' tailwinds.
### Vijay Kedia: The Value Maestro's Long Bet
Vijay Kedia, the Bihar-born investor famed for spotting multibaggers like Sudarshan Chemical and Cera Sanitaryware, has been a steadfast backer of ARAPL since 2018. As per the latest shareholding data, Kedia holds a 7.39% stake—translating to 831,043 shares valued at approximately Rs 20.9 crore at current prices. His firm, Kedia Securities, chipped in early, including preferential allotments that ballooned his exposure. Kedia's thesis? Betting on undervalued enablers of India's manufacturing renaissance, where automation is the linchpin for global competitiveness.
This isn't Kedia's first robotics rodeo; his portfolio blends tech disruptors with traditional plays, yielding 30-40% CAGR historically. ARAPL fits his "smile" philosophy—invest in competent management solving real problems. Post-migration, Kedia's endorsement has amplified visibility, drawing retail frenzy on platforms like X, where users hail it as "Kedia's next 10-bagger."
### Market Jitters: Rally Fades to Pullback
The news sparked fireworks: ARAPL shares locked at the 5% upper circuit on November 7, touching Rs 252.95 intraday amid heavy volumes (over 2x average). But profit-taking ensued, with the stock settling 2.78% lower at Rs 235.85 by November 7 close—still up 12% from pre-announcement levels. Broader smallcap weakness, coupled with a promoter stake sale (1.2% offloaded via open market), tempered the gains.
Analysts remain upbeat, with targets of Rs 300-350 citing order pipeline potential and US foothold. "This de-risks ARAPL's revenue diversification," notes a Motilal Oswal report, flagging 25% EPS accretion if expansions materialize.
| Metric | Details | FY24 Performance | Outlook |
|--------|---------|------------------|---------|
| **Revenue** | Rs 84 Cr (Automation: 70%) | +43% YoY | 30% growth on int'l orders |
| **Net Profit** | Rs 12.5 Cr | +95% YoY | Margins to 18% with RaaS scale |
| **Order Book** | Rs 120 Cr (incl. US) | Automotive dominant | Logistics to add 20-30% |
| **Valuation** | P/E 22x; Market Cap Rs 283 Cr | Post-migration liquidity | Target: Rs 300 (20% upside) |
| **Kedia Stake** | 7.39% (Rs 20.9 Cr) | Held since 2018 | Long-term conviction play |
### Scaling New Heights: Boon for India's Robot Ambitions?
ARAPL's US foray isn't just a win for its balance sheet—it's a poster child for Indian tech exporting prowess, echoing successes like Syrma SGS in electronics. With Kedia's imprimatur and a scalable RaaS model, the company is poised to capture e-commerce giants' warehouse automation needs. Risks loom—execution delays, forex swings—but the upside glitters brighter.
As Vijay Kedia quipped at ARAPL's NSE listing: "It's a red-letter day for robots in India." Will this contract turbocharge his stake? For investors eyeing the AI-robotics nexus, ARAPL's on the radar.
*Bullish on Kedia's picks or waiting for confirmation? What's your take on ARAPL—buy, hold, or watch? Comment below!*
Kolkata: Affordable Robotic & Automation is a company that specialises in automation solutions for different industries but has a focus on the automotive sector. It has skills that enables it to design, manufacture and install automated systems like assembly lines, welding cells and material handling equipment. It is also n expert in setting up automated car parking systems for all sorts of buildings — residential and commercial.
On November 7 morning, the Affordable Robotic & Automation stock was trading at Rs 235.85, down Rs 6.75 or 2.78%. On November 6, the stock rose to Rs 252.95 but later dipped an settled at Rs 242.40. The market cap of Affordable Robotic & Automation is around Rs 283 crore. Recently, it has secured an order to an order from the US for supplying six new autonomous mobile robots on a two-year lease.
The order has come to the company after Affordable Robotic & Automation successfully demonstrated success in prototype trials. The deal can pave the way for expansion of the company. Reports have stated that two US warehouses will require 47–50 mobile robots over the next two years. This order has brought Robot manufacturing company Affordable Robotics and Automation Limited in news. The order has been secured by ARAPL RaaS (Humro), which is the US subsidiary of Affordable Robotic & Automation.
