Synopsis:
The company has signed several agreements with the Government of Gujarat for projects worth Rs.4,754 crore to replace overhead HT lines with underground cables across the state.
The shares of a small-cap company engaged in providing power transmission and infrastructure EPC contracts drew investor attention after signing an MOU with the Government of Gujarat.
With a market capitalization of Rs.2,773.05 crores, the shares of Rajesh Power Services Limited were trading at Rs.1,539.95, up by 1.43 percent from its previous day closing price of Rs.1,518.30.
Agreement
Rajesh Power Services Limited has signed MoUs worth ₹4,754 crore with theGovernment of Gujarat at the Vibrant Gujarat Regional Conference 2025 inMehsana. The funds will be used for power transmission and distribution projects,mainly to replace overhead high-tension lines with underground cables. Theseprojects are expected to create over 33,000 jobs in Gujarat and increase thestate’s economic growth and skill development.
Management Commentary
Rajesh Power Services Limited’s MD, Mr. Kurang Panchal, commented as follows: “We are delighted to be a part of the Vibrant Gujarat Regional Conference 2025 being held at Mehsana in Gujarat, and extend our sincere gratitude to the Government of Gujarat for their continued trust and support.
Each of these MoUs signed today marks a significant step toward strengthening the state’s robust power distribution infrastructure and enhancing reliability for communities across the region.
We remain fully committed to executing every project with dedication and excellence, ensuring timely delivery and efficiency in implementation. Together, these initiatives will lay the foundation for future-ready energy solutions and further reinforce Gujarat’s position as a leader in power sector transformation.”
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About the Company & Others
Rajesh Power Services Limited is a leading EPC company specializing in the power transmission and distribution sector. The company offers services across multiple areas, including turnkey execution of GIS and AIS substations, extra high voltage power cables and transmission lines, and construction of distribution systems.
With a customer-focused approach and a commitment to high-quality delivery, it has maintained a strong presence in its core business for over 50 years.The company has a strong client base with players such as Prestige, Adani Electricity, Ford, CEAT, Coca-Cola, UPL, MRF, Saint-Gobain, KPT Engineering, etc.
As per available data, the company has having order book worth Rs.3,628 crore, Rs.2,599 crore comes from the Power Distribution segment, with orders from government and private DISCOMs, turnkey projects, and OEM services. The remaining Rs.1,029 crore is from the power transmission segment, including orders from state transmission utilities and other companies.
The company’s revenue increased from Rs.285 crore in FY24 to Rs.1,072 crore in FY25, while net profit rose from Rs.26 crore to Rs.87 crore during the same period. It has a return on equity of 50.8 percent and a return on capital employed of 54.7 percent. With a P/E ratio of 32.13, with the industry average of 31.59.
Written by Jhanavi Sivakumar
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