Nirmitee Robotics – Investometry

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About the Company:

The Company is a tech based company making robots using robotic technology and engaged in providing Heating Ventilation and Air Conditioning (HVAC) Duct Cleaning and Ozone sterilization services with these robots. Company makes custom- made robots– operated by machines that clean the inside of HVAC Air Ducts – by scrubbing, polishing, sucking, scraping and removal of the accumulated contaminants like dust, debris, bacteria, mold and even dead pests and rodents and provides the Ozone treatment to the ducts from the inside and thus sanitizes it for many more months to come. All these robots are fitted with an advanced controller mechanism and a high resolution camera.

HVAC Air Ducts accumulate the above contaminants and if left unclean, these contaminants clog the air ducts and circulate air borne diseases throughout the room or the area. Bad Indoor Air Quality (IAQ) affects the health of the employees and other visitors and the majority of one’s time is spent breathing indoor air. Duct cleaning robots can clean the most difficult to reach corners in any air duct, and give super clean and healthy air, which is not possible by any other physical cleaning process.

They serve a broad range of industries e.g.- service to offices, convention centers, hospitals, trains, etc.

Duct cleaning Process:

Step 1: Inspection and mapping of the site

Step 2: Inspection of the duct using the Inspection Robot and taking the Pre SPM (Suspended Particulate Matter)

Step 3: Creation of Access Doors/ Window as per the map provided by client/ Diffuser unloading.

Step 4: Sterilization by Ozone (Ozone kills the bacteria)

Step 5: Selection of the Robots and Cleaning of the duct by means of brushing, scrubbing, suctioning etc

Step 6: Diffuser Cleaning and Affixing / Pasting the Cut-out Patch of duct

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Step 7: Dust Sampling and Disposal.

Cleaning Process:

Process of Cleaning by our Air Duct Inspection & Cleaning Robots: 

Step 1 – Survey Bot The Survey Robot or the Dust Inspection Robot is sent into the ducts initially. He surveys and communicates the specific information about the spots where the dust is accumulated and stuck. 

Step 2 – Scrub Bot Then the Scrubber Robot (Scrub Bot) reaches those spots and scrubs the inner surface of the ducts to dislodge the dirt or objects and activates the suction mechanism attached to it to suck in the freed dirt. 

Step 3 – Pneumatic Bot If the duct does not have moisture inside, the Pneumatic Bot pumps compressed air on the inner walls and cleans them. 

Step 4 – Dust Cleaning Bot This Dust Cleaning robot actually works as an assistant or arm of the other robots as it clears away for them to penetrate deeper inside, by pushing away the lumps of dirt, dead bodies of the rodents and insects etc. 

Step 5 – Ozone Spray & Sterilization By using ozone and ozone generators, Ozone is sprayed into the ducts to sterilize the entire duct for a long time to come, and in order to kill the tiny microbial features that may cause health hazards.

Raw Materials:

Company requires various electrical & control equipment like cables, connectors, joystick, LED etc.; certain fabrication machines/ equipment; Mechanical equipment like crimping tools, solder iron, heat gun etc. to make the Robots and it constitutes as major raw material. Also, safety equipment & devices form a part of the raw materials.


Company has 6 Directors consisting of 1 Whole-time Director, 3 Non-Executive Directors and 2 Non-Executive Independent Directors.

Mr. Jay Prakash Motghare – Whole-time Director and Founder promoter

Mr. Kartik Eknath Shende – Non-Executive Director and co-promoter

Mr. Rajesh Narendra Admane-  Non-Executive Director and co-promoter

Ms. Mrunalini Chintamani Damle-  Non-Executive Director

Mr. Manish Tarachand Pande -Non-Executive Independent Director

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Mr. Pradeep Prakash Thadani -Non-Executive Independent Director

Shareholding before and after IPO:

Name Pre-IPO Post-IPO
Mr. Jay Prakash Motghare 33.33% 23.60%
Mr. Kartik Eknath Shende 33.33% 23.60%
Mr. Rajesh Narendra Admane 33.33% 23.60%

Reason for IPO:

Reason for IPO was to meet their plans for the redemption of preference shares (Rs. 1.75 cr.), Security Deposit towards the acquisition of registered office, R & D Facility, assembling unit (Rs. 1.00 cr.) and general corpus fund (Rs. 0.08 cr.) needs.

Cons of the company:

  1. Not be able to qualify for, compete and win contracts due to high competition and their contracts are based on bidding processes which might force them to lower their margin.
  2. Some of the contracts are with the Government of India or government agencies and they may face certain inherent risks associated with government contracts. 
  3.  rely upon third-party for fabrication of the robots designed by us for providing the services. Those are very important for them to build up a robot. They don’t have any manufacturing plants for those materials and have to buy from other companies.
  4. The cleaning solutions provided by them are customer specific and cannot be used for multiple customers. So they have to build new robots for different customers but they can use the same robots for similar kinds of requirements.
  5. require certain approvals and licenses in the ordinary course of business
  6. Don’t have a proper R&D centre and are planning to set up that by using the funds from IPO.

Financial summary:

Assets and Liabilities

Profit and Loss

Cashflow statement


As you can see the revenue has increased marginally so as the profits since last 3 years but the profit margin is very low. I like the fact that the remuneration or salary paid to the management team is quite low. The whole time director and founder of the company is getting salary as 6L p.a. This shows that the management doesn’t care about the money much as a graduate student’s starting salary is 6L p.a.

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You can see that the employee benefit expenses are not that high but the majority of the revenue is eaten up by the other expenses which mainly includes the cost of imports for making the robots. The company doesn’t have any plant to manufacter the parts so they get those by different company plus they have rented space for their R&D centre and some offices which they are planning to buy with the capital recieved by the IPO.

If you go for the valuation of the company then it’s turns out to be very high as their earnings are low as compared to their market cap. But if the management starts cost cutting by taking necessary actions and develop a proper R&D centre for innovating new robots for different services as well then I would suggest to Buy till then stay away from this company.

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Meet Mehta

21 | Small & Mid Cap Investor | CFA L1 candidate | Blogger | Reader | Engineer | Life-Long Learner
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