Synopsis:
Rajesh Power Services Ltd (RPSL), a prominent EPC participant in power distribution and transmission, obtained a turnkey deal worth ₹220.18 crore, resulting in a 4.4% increase in stock price.
An Indian company that specializes in engineering, procurement, and construction (EPC) services for power infrastructure has seen a 4.4 percent increase in stock price as a result of a new order.
With the market capitalization of Rs. 2,530 crores., the shares of Rajesh Power Services Ltd were trading at Rs.1405, up 4 percent from its previous day’s close price of Rs. 1,350.10 per equity share. It has delivered a multibagger return of 99 percent over the year.
Work Order
A domestic turnkey contract for the supply, installation, testing, and commissioning of 11KV Medium Voltage Covered Conductor (MVCC) at multiple locations has been awarded by M/s Madhya Gujarat Vij Company Limited (MGVCL), Vadodara, Gujarat. The project is being carried out under the Vanbandhu Kalyan Yojana (VKY-2) and Kisan Suryoday Yojana (KSY) programs. The contract has an execution period of nine months and a total value of Rs. 220.18 crore.
About the Company & Others
An expert service provider of turnkey EPC solutions, RPSL was founded in 1971 and focuses on the power transmission and distribution industry in India. The company provides end-to-end services from design to commissioning and has a proven track record of successfully completing major infrastructure projects. RPSL has completed more than 11,100 km and is currently working on about 27,300 km, making it one of the biggest EPC providers for Medium Voltage Covered Conductor (MVCC) projects. It has continuously completed the majority of projects ahead of schedule during the last three fiscal years.
At the moment, RPSL has orders worth nearly ₹3,628 crore in execution. This includes ₹1,029 crore in the Power Transmission segment, which includes projects from private DISCOMs, state transmission utilities, and private enterprises that need to enhance their EHV power. The Power Distribution segment, which makes up ₹2,599 crore, includes OEM services for DISCOMs, turnkey projects for private distribution companies, and orders from both public and private distribution companies.
A return on equity (ROE) of about 35.44 percent and a return on capital employed (ROCE) of about 43.57 percent demonstrate the company’s strong position. Significant improvement in the debt-to-equity ratio to 0.22x suggests sound financial management and less leverage. The business continues to show strong growth and financial stability with a 3-year sales CAGR of 94 percent while trading at a price-to-earnings (P/E) ratio of 29x.
Written by Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
