Multibagger Switchgear engineering stock jumped 7 percent in the day’s trade after it secured an order from Maharashtra State Electricity Distribution Company Limited worth Rs. 122.25 Crores for Development of Distribution Infrastructure.
At 11:55 a.m the shares of RMC Switchgears Limited were trading at Rs. 639 per share, up 6.66 percent from its previous day close price of Rs. 599.10 and its market capitalization is Rs. 658 Crores.
As per the company’s filing, RMC Switchgears Limited JV has been awarded a contract by Continental Petroleums Limited, which is a contract from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for Development of Distribution Infrastructure which includes comprehensive work including supply of plant, installation, and civil works, to facilitate loss reduction through infrastructure development within the Jalna Circle under Aurangabad Zone of MSEDCL and the contract is valued at Rs. 122.25 Crores.
It has delivered multibagger returns of 220 percent in a year and 209 percent in the last six months. A shareholders investment of Rs. 1 Lakh in the company would be worth Rs. 3.2 Lakh in a year.
The company’s revenue grew 210.42 percent from Rs. 41.56 Crores in FY22 to Rs. 125.27 Crores in FY23, accompanied by increasing profits of Rs. 0.58 Crore to Rs. 11.74 Crores.
It has reported a return on equity (ROE) of 31.92 percent and a return on capital employed (ROCE) of 29.6 percent, it is making good returns on its equity and capital employed.
According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold 52.93 percent stake, the Domestic Institutional Investors hold 0.75 percent and the Foreign Institutional Investors (FII) hold 0.74 percent.
RMC Switchgears Limited is primarily engaged in the business of switchgear engineering, construction contracts for power/transmission sector and Polyvinyl chloride marble and solid surface, it is also engaged in researching, designing and manufacturing electronic smart energy meter enclosures, distribution boxes and panels etc.
Written by: Bharath K.S
