Synopsis:
RMC Switchgears received two orders worth ₹100.19 crore from Suncity Urja. The ₹66.39 crore order is for distribution work in Jhalawar under RDSS, and the ₹33.79 crore order is for loss reduction in Kota under a reform-linked scheme.
The shares of a Micro-Cap company, specializing in designing, manufacturing, and supplying electrical infrastructure solutions, jumped upto 5 percent upon receiving two Letters of Award (LOAs) totaling Rs. 100 crores from Suncity Urja Private Limited.
With a market capitalization of Rs. 761.67 crores on Wednesday, the shares of RMC Switchgears Ltd rose by upto 5.06 percent, making a high of Rs. 734.80 per share compared to its previous closing price of Rs. 699.40 per share.
What Happened
RMC Switchgears Ltd, engaged in designing, manufacturing, and supplying electrical infrastructure solutions, has received two Letters of Award (LOAs) from Suncity Urja Private Limited, totaling approximately Rs. 100.19 crore.
The first order, valued at Rs. 66.39 crore, is for the supply and erection of items for the development of distribution infrastructure at the Jhalawar Circle of Jaipur Discom under the RDSS scheme.
The second order, worth Rs. 33.79 crore, pertains to the supply and development of distribution infrastructure for loss reduction works at the Kota Circle of Rajasthan under the Revamped Distribution Sector Scheme.
Both are domestic contracts to be executed on a turnkey basis, with work commencing within 7 days of award and progressing as per the schedule set by project engineers. These orders are expected to strengthen RMC’s order book and contribute positively to its revenue and growth outlook.
Financial & Others
The company’s revenue rose by 149 percent half yearly from Rs. 85 crore in March 2024 to Rs. 213 crore in March 2025. Meanwhile, Net profit rose from Rs. 7 crores to Rs. 21 crores during the same period.
The company shows strong financial metrics with a high ROCE of 37.2% and ROE of 37.5%, indicating efficient use of capital. It maintains a healthy debt-to-equity ratio of 0.55. With a low PEG ratio of 0.09 and a stock P/E of 24.0 compared to the industry P/E of 40.1, the stock appears undervalued relative to its growth potential.
The company has delivered strong financial performance with a 149% CAGR profit growth over the last 5 years, a solid 3-year average ROE of 34.2%, and a 10-year median sales growth of 22.4%.
RMC Switchgears Ltd is an Indian company headquartered in Jaipur, Rajasthan, and was incorporated in 1994. It specializes in designing, manufacturing, and selling energy meter enclosures, LT/HT distribution boxes and panels, junction boxes, feeder pillars, and other circuit protection switchgears.
It also undertakes EPC (Engineering, Procurement and Construction) contracts for laying energy transmission lines, establishing electric substations, and shifting or installing energy meters.
The company has a set of Maquee clients as follows: state power distribution companies such as Punjab State Power Corp Ltd, J&K Power Distribution Co. Ltd, HP State Power Corporation, Ajmer Vidyut Vitaran Nigam, and more
The company also operates in the EPC and smart metering space alongside major players like L&T, NCC, Bajaj Electricals, Ashoka Buildcon, Tata Projects, Voltas Electrical, Sterling Wilson, Adani Energy Solutions, and more.
It sources meters from leading manufacturers such as Genus Power, HPL Electric, Secure Meters, and L&T meters. Its customer base includes reputed PSUs and corporates like NTPC, GAIL, and REIL.
Written by Sridhar J
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