India’s first company to design and manufacture special meter enclosures and panels rose 5 percent after it announced plans to migrate its shares from the BSE SME platform to the BSE Mainboard. This move aims to enhance its visibility and liquidity in the market, signaling potential growth and greater investor interest.
Price Movement
In Friday’s trading session, RMC Switchgears Limited’s share price reached an intra-day high of Rs.1,100.00 per share, rising 4.9 percent from its previous close of Rs.1,048.35 apiece. The share has retreated since then, trading at Rs.1,050.00 per share. Over the past five years, the shares have delivered over 7,700 percent returns.
What Happened
RMC Switchgears Ltd. has scheduled a Board of Directors meeting on December 17, 2024, to review and approve a proposal to migrate its equity shares. The company plans to shift the listing and trading of its shares from the BSE SME Platform to the Main Board of the Bombay Stock Exchange (BSE).
In addition, the Board will consider directly listing its shares on the Main Board of the National Stock Exchange of India (NSE). This strategic move is intended to increase the company’s market presence and liquidity.
Capacity Expansion and New Developments
RMC Switchgears Limited has expanded its production capacity to 3,00,000 Sheet Molding Compound (SMC) enclosures annually, with an estimated capital expenditure of Rs.7-10 crore for this enhancement.
Demand for smart water meters is expected to rise to 5,00,000 units by 2025, driven by government initiatives such as the Jal Jeevan Mission. In response, RMC Switchgears launched a subsidiary, Intelligent Hydel Solutions Pvt. Ltd., in 2024 to enhance water IoT solutions. This initiative focuses on improving smart management, distribution, treatment, and monitoring of water resources.
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Reputed Clientele
RMC Switchgears boasts a reputable client roster that includes notable names from state utilities and major private companies, such as Maharashtra State Electricity Distribution Co. Ltd, Uttar Pradesh Power Corporation, Larsen & Toubro, Bajaj Electricals, TATA Projects Limited, Adani Energy Solutions, NTPC, and GAIL.
Financial Overview
The company reports financial results on a half-yearly basis. In H1FY25, the company’s revenue from operations surged by 21 percent year-on-year, reaching Rs.105 crore, up from Rs.87 crore in H1FY24. Additionally, the company’s Profit After Tax (PAT) surged 25 percent to Rs.10 crore in H1FY25, compared to Rs.8 crore in H1FY24.
About the company
RMC Switchgears manufactures a variety of products, including electronic smart energy meter enclosures, distribution boxes, feeder pillars, and circuit protection materials. Their offerings cater to both low-tension and high-tension applications, ensuring safety and efficiency in electrical systems.
Written by – Siddesh S Raskar
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