Synopsis:
Rajesh Power Services won two orders, such as ₹182.62 cr from MGVCL for HT network conversion and one for ₹95 cr for GIS substations, both to finish within 12 months.
This small-cap stock, engaged in turnkey EPC projects for power transmission, including installation and maintenance of EHV cables, substations, and underground networks, jumped 4 percent after securing multiple orders worth Rs. 288 crore from MGVCL and a Domestic Private company.
With a market capitalization of Rs. 2,683.10 crores, the share of Rajesh Power Services Limited has reached an intraday high of Rs. 1,493 per equity share, rising nearly 3.84 percent from its previous day’s close price of Rs. 1,437.80. Since then, the stock has retreated and is currently trading at Rs. 1,490 per equity share.
What is the news?
Rajesh Power Services Limited has received an order worth Rs. 182.62 crore from Madhya Gujarat Vij Company Limited (MGVCL). The turnkey project involves converting the existing 11kV HT network into underground cable/MVCC under the SI scheme in Mehmedabad, Anand, Petlad, and Nadiad. The project is scheduled to be completed within 12 months.
Additionally, Rajesh Power Services Limited has received an order worth Rs. 95 crore from a domestic private company in the same line of business. The scope of work includes the supply, installation, testing, and commissioning of 400 kV/33 kV and 66 kV/33 kV GIS substations in Gujarat. The project is scheduled to be completed within 12 months.
Order Book
Rajesh Power Services Limited’s order book under execution stands at Rs. 3,628 crore, reflecting a strong pipeline of projects. Out of this, the Power Transmission segment accounts for Rs. 1,029 crore (28 percent), comprising orders from state transmission utilities, private DISCOMs, and companies requiring extra high voltage (EHV) power enhancement and applications.
The Power Distribution segment contributes the largest share of Rs. 2,599 crore (72 percent), which includes contracts from government distribution companies, private distribution companies, turnkey projects for private players, and OEM services for DISCOMs.
Client Base
Rajesh Power Services Limited serves a wide client base across industries and utilities. Its marquee customers include Adani, Torrent Power, Indian Oil, Ford, Coca-Cola, Blue Star, CEAT, UPL, Zydus, Prestige, Saint-Gobain, GIFT City, MGVCL, UGVCL, SRF, Alelima, and Gujarat State Road Transport Corporation (GSRTC).
Company Overview
Rajesh Power Services Limited (RPSL) was established in 1971 and is a company specializing in power infrastructure solutions, offering EPC (Engineering, Procurement, and Construction) services in both renewable and non-renewable power sectors.
The company provides services such as installation of EHV cables, construction of substations, underground power distribution, solar plant setup, and 24/7 operations and maintenance support.
Recent quarter results
Coming into financial highlights, Rajesh Power Services Limited’s revenue has increased from Rs. 313 crore in H1 FY25 to Rs. 759 crore in H2 FY25, which has grown by 142.49 percent. The net profit has also grown by 114.29 percent from Rs. 28 crore in H1 FY25 to Rs. 60 crore in H2 FY25.
Rajesh Power Services Limited’s standalone revenue and net profit have grown at a CAGR of 93.92 percent and 207.23 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 54.7 percent and 50.8 percent, respectively. Rajesh Power Services Limited has an earnings per share (EPS) of Rs. 48.48, and its debt-to-equity ratio is 0.22.
Written By – Nikhil Naik
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