5,400 per cent returns in this multibagger stock: Board announces bonus shares for the first time ever; scrip hit back-to-back upper circuits & 52-week highs!

The stock gave multibagger returns of 1,800 per cent in just 1 year.

RMC Switchgear Ltd informed the exchange (BSE Scrip Code: 540358) that the Board of Directors of the company have approved bonus shares in the ratio of 1:2 i.e., 1 (one) new equity share of Rs 10 each to be issued for every 2 (two) existing equity share of Rs 10 each fully paid up. The estimated record date for the bonus shares is within two months from the date of approval from the Board of Directors i.e., October 31, 2023.

Earlier, RMC Switchgear and Radius Synergies International Private Limited entered into a Memorandum of Understanding (MoU) for knowledge sharing, capacity building, global outreach for IT automation solutions, techno-commercial studies and analysis, and promoting best practices in the electricity distribution and energy sector. The MoU is valid for 5 years.

The MoU is a significant step towards fostering technological innovation and collaborative efforts in the sector. It will contribute to the advancement of the industry and bolster the commitment of both companies to providing cutting-edge solutions.

RMC Switchgears Ltd is primarily engaged in the business of switchgear engineering, ECI contracts for the power distribution/ transmission sector and PVC marble and solid surface. The company has a market cap of Rs 551.29 crore. In H2FY23, the net sales increased by 179 per cent to Rs 67 crore compared to H2FY22. The company reported a net profit of Rs 6 crore in H2FY23.

On Monday, shares of RMC Switchgears Ltd surged 5 per cent upper circuit to Rs 802.20 per share from its previous closing of Rs 764. The company has a market cap of Rs 425 crore with an ROE of 41.2 per cent and an ROCE of 34.2 per cent.

The stock gave multibagger returns of 1,800 per cent in just 1 year, 3,500 per cent in 2 years and a whopping 5,400 per cent in 3 years. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.