6,000 per cent returns: Electrical & Solar Infrastructure Company Reports 19.86 Per Cent Revenue Growth, 25.68 Per Cent PAT Increase & Order Book Exceeds Rs 850 Crore
The stock gave multibagger returns of 325 per cent in 2 years and a whopping 6,000 per cent in 5 years.
RMC Switchgears is a leading electrical infrastructure solutions provider, specializing in manufacturing electrical enclosures to prevent theft and electrocution. Renowned for its smart meter enclosures, RMC supports utilities across India in initiatives like RDSS. Offering comprehensive solutions from manufacturing to O&M, RMC is a trusted partner for AMISPs, utilities, and state entities. Expanding into renewable energy, RMC focuses on solar and green energy EPC and IPP solutions, aligning with India's clean energy transition. This complements its core infrastructure business, extending to water management infrastructure using IoT. RMC continues to provide high-value, customized solutions for discoms, enhancing efficiency, reducing losses, and supporting India's power security goals.
Progressive Revenue Growth: Revenue from operations surged by 19.86 per cent YoY to Rs 104.78 crore in H1FY25, compared to Rs 87.42 crore in H1 FY24. This robust growth was fuelled by consistent performance across business products and verticals, notably driven by the progress in ongoing Electrical EPC projects aimed at reducing T&D losses.
Profitability and Margin Performance: The Company achieved a 25.68 per cent growth in Profit after Tax (PAT), reaching Rs 10.13 crore compared to Rs 8.06 crore in the previous year. The PAT Margin improved by 45 bps to 9.67 per cent, reflecting strong fiscal management and effective cost navigation. While Gross Profit declined by 8.85 per cent YoY to Rs 40.60 crore due to higher Costs of Goods Sold (COGS), the Company's EBITDA remained marginally lower at Rs 19.83 crore.
Operational Context and Future Outlook: RMC's strong performance in H1 FY25 is attributed to its expertise in delivering customized solutions for T&D loss reduction and power distribution infrastructure enhancement. The Company is actively pursuing new opportunities under the RDSS and scaling its capabilities in the Solar Supply Chain. Despite short-term challenges in the smart metering segment, RMC remains optimistic about future growth.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
The Company is expanding its market presence by entering new segments like electrical panels, leveraging the growing demand in sectors such as infrastructure, data centres, renewable energy, and industrial automation. Additionally, RMC is capitalizing on the increasing focus on underground cabling and feeder pillars, driven by urbanization, Smart Cities initiatives, and government programs like IPDS. With a forward-looking approach, RMC is well-positioned to capitalize on growth opportunities across diverse sectors, solidifying its position as a leading solutions provider.
The company has a market cap of Rs 840 crore with order book exceeding Rs 850 crore. The shares of the company have an ROE of 31 per cent and an ROCE of 32 per cent. On Friday, shares of RMC Switchgears Ltd gained 0.55 per cent to Rs 815.35 per share from its previous closing of Rs 810.85 per share. The stock gave multibagger returns of 325 per cent in 2 years and a whopping 6,000 per cent in 5 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.