This small-cap transmission stock engaged in providing engineering, procurement, and construction (EPC) services for power transmission and distribution, specializing in substations, power cables, and transmission lines, skyrocketed 18 percent after receiving an order worth Rs. 1,116 crore from various government and institutional clients.
Stock Price Movement
With a market capitalization of Rs. 2,142.88 crores, the share of Rajesh Power Services Limited has reached an intraday high of Rs. 1,247 per equity share, rising nearly 17.95 percent from its previous day’s close price of Rs. 1,057.20. Since then, the stock has retreated and is currently trading at Rs. 1,190 per equity share.
What Happened
Rajesh Power Services Limited (RPSL) has secured new orders worth Rs. 1,116 Crores from various government and institutional clients. These orders include projects for the supply, installation, testing, and commissioning of power networks and substations in Gujarat.
The scope of work involves both underground and overhead cable networks, as well as GIS and AIS substations. The company is expected to complete these projects within 12 to 18 months. This development further strengthens RPSL’s position in the power transmission and distribution sector.
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Expansion Plans
Rajesh Power Services Limited is expanding into the renewable energy sector by enhancing capabilities in solar energy and green hydrogen power generation. The company is also building expertise in hydrogen electrolysers through partnerships with research organizations like Bhabha Atomic Research Centre (BARC).
Client Base
Rajesh Power Services Limited serves a diverse range of key clients, including state and private utilities, industrial customers, and large corporations like Adani Green Energy, Gujarat Metro Rail Corporation, and Coca-Cola.
Order book
As of September 2024, Rajesh Power Services Limited has an order book valued at Rs. 2,570 Crores, which is ten times its total sales for FY24. This strong order backlog reflects the company’s robust business growth and future prospects.
Financial Highlights
Rajesh Power Services Limited’s revenue has increased from Rs. 207 crore in FY23 to Rs. 285 crore in FY24, which has grown by 37.68 percent. The net profit has also grown by 271.43 percent, from Rs. 7 crore in FY23 to Rs. 26 crore in FY24.
Written By – Nikhil Naik
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