FIIs & DIIs Increase Stake: Smart Metering Solutions Provider Signs MoU with Government of Rajasthan for 1,000 MW Ultra Mega Solar Park Project
The company’s shares have delivered an impressive return of over 265 per cent in just 2 years.
This Small-Cap company offers Switchgear Engineering and ECI contracts for the power distribution and transmission sectors.
RMC Switchgears Ltd announced a strategic Memorandum of Understanding (MoU) with the Government of Rajasthan to develop the state’s first 1,000 MW Ultra Mega Solar Park, complete with integrated battery storage. This innovative project in Jaipur represents a significant step in RMC’s expansion into renewable energy and is essential to the company’s growth strategy. Expected to take 2-3 years to complete, the solar park will advance RMC’s goal of implementing approximately 1 GW of greenfield projects through a mix of EPC and IPP models. It also aligns with RMC’s Vision 2030, which aims for a revenue target of Rs 35,000 crore.
The MoU represents a significant milestone, helping RMC reach its 1 GW renewable energy target and highlighting its capabilities in executing large-scale green energy projects, in line with India’s sustainability objectives.
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In addition to its strategic importance for RMC, the solar park is poised to make a transformative impact on the local economy by creating around 2,000 direct jobs and supporting socio-economic development in Rajasthan. The Government of Rajasthan has committed to providing essential approvals and clearances to facilitate a smooth and timely execution, with power generation expected to commence by 2026.
On Friday, the shares of RMC Switchgears Ltd closed the day at around Rs 732.50 per share. The company’s current market capitalization stands at Rs 755.08 crore. The stock has delivered a multibagger return of over 4,000 per cent in just 3 years.
The company doesn’t announce Quarterly Results, and as per the half-yearly results in March 2024, RMC Switchgears Ltd recorded a revenue of Rs 85 crore compared to Rs 67 crore same period last year. The operating profit for the period stood at Rs 14 crore. The net profit stood at Rs 7 crore. Looking at the annual performance, the company generated a revenue of Rs 173 crore in FY24, compared to Rs 125 crore in FY23. The operating profit for FY24 was Rs 34 crore with a net profit of Rs 15 crore.
Disclaimer: The article is for informational purposes only and not investment advice.