1:2 bonus share & 3,900 per cent returns: This multibagger electrical equipment company bags order worth Rs 56.68 crore for projects in PVVNL and MVVNL

The stock gave multibagger returns of 1,900 per cent in 2 years and a whopping 3.900 per cent in 3 years.

RMC Switchgears Ltd has been awarded a significant work order valued at approximately Rs 56.68 crore (including GST) (Ref: PO No. 5500000232 & 5500000235). This contract involves the design, engineering, manufacturing, integration, testing, inspection, packing, supply, transportation, and insurance of SMC Meter Enclosures for Smart Meters for projects undertaken by PVVNL and MVVNL. As this contract is considered a material event, this announcement is being made to comply with the listing obligations and disclosure requirements of the Bombay Stock Exchange (BSE). For further details regarding the contract terms and project scope, the company is available to provide additional information.

Earlier in FY24, the shares of the company ex-traded 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 record date for bonus shares was Friday, October 13, 2023.

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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 440 crore with an ROE of 36 per cent and an ROCE of 35 per cent.

On Wednesday, shares of RMC Switchgears Ltd hit a 5 per cent upper circuit to Rs 426.90 per share from its previous closing of Rs 406.60. The stock gave multibagger returns of 1,900 per cent in 2 years and a whopping 3.900 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.