The shares of the largest Electrical enclosure manufacturing company hit a 5 percent upper circuit after the company board announced a bonus issue.
In Early trade on Tuesday, RMC Switchgears Ltd shares touched a 5 percent upper circuit to an all-time high price of Rs 842.30 apiece on the National Stock Exchange.
According to the company’s BSE filings, The company board of directors approved the Bonus Issue of Equity Shares in a 1:2 ratio, which means the company would issue one bonus share for every two shares owned by existing shareholders. Bonus shares will be issued out of the available Share Premium Amount as of March 31,2023.
The company will credit the bonus shares within two months of its board of directors approval, which is before October 31, 2023.
RMC Switchgear’s revenue has increased by 200 percent year on year, from Rs 41 crore in FY 21-22 to Rs 125 crore in FY 22-23. During the same period, Net Profit has increased by 1100 percent from Rs 1 crore to Rs 12 crore.
As of the June quarter, the business has received total orders of Rs 33.06 crores from EPC Contractors and the company’s current order book in hand was 305.66 crores.
The company’s share has delivered multibagger returns of 1,900 percent in a year, If a shareholder had invested Rs 1 lakh in the company, that would be worth Rs 20 lakhs in a year.
The company’s margins have significantly improved with a net profit margin of 9.37 percent and an operating profit margin of 19.08 percent. Similarly, profitability metrics have increased with a return on equity of 25.68 percent, and a return on capital employed of 35.97 percent.
As per the latest shareholding pattern, the RMC Switchgears Promoter holds 52.93 percent while retail investors hold a 47.07 percent stake.
RMC Switchgears Ltd specializes in switchgear engineering, ECI contracts for the power distribution/transmission industry, and PVC marble and solid surfaces.
Written by Omkar Chitnis
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