4,200 Per Cent Returns & Rs 850 Crore Order Book: Solar Company Bags New Order Worth Rs 320,00,00,000 From Government of Rajasthan

The stock is up by 60 per cent from its 52-week low of Rs 379.05 per share and gave multibagger returns of over 4,200 per cent in 5 years.

RMC Switchgears Limited has secured a significant Letter of Acceptance (LOA) from the Government of Rajasthan for a Rs 320 crore rooftop solar initiative. This project involves the installation of 50 MW of rooftop solar systems across state government buildings in Jaipur and Dausa. RMC will handle the complete process, from design and supply to erection and commissioning, operating under the Hybrid Annuity Mode (HAM). Furthermore, the company is tasked with the operation and maintenance (O&M) of these installations for the next 25 years, generating a one-time revenue of Rs 229 crore and a recurring revenue of Rs 91 crore through O&M services.

This order marks a pivotal advancement for RMC Switchgears, reinforcing its contribution to India's clean energy transition. The project aligns with Rajasthan's ambitious vision to power all state government buildings with solar energy. By successfully obtaining this contract, RMC is strategically positioned to leverage the burgeoning renewable energy market, delivering sustainable energy solutions and supporting India's national renewable energy targets. This initiative underscores RMC's commitment to expanding its Solar EPC and IPP footprint within the dynamic clean energy sector.

RMC Switchgears' commitment to delivering impactful and sustainable solutions is further demonstrated by its long-term O&M responsibilities. This 25-year commitment establishes a steady income stream for RMC, ensuring long-term financial sustainability. The company's dedication to utilizing its expertise and resources to drive energy efficiency and empower communities is evident in its involvement in this large-scale project, solidifying its role as a key player in India's evolving clean energy landscape.

About the Company

RMC Switchgears is a multifaceted electrical infrastructure company, that excels in manufacturing theft-resistant and safety-enhancing electrical enclosures, particularly within the smart meter market under India's RDSS initiative. They offer comprehensive services including manufacturing, installation, and O&M, serving AMISPs, utilities, and state entities. Expanding its portfolio, RMC is strategically positioning itself for significant participation in the government's transmission sector investments through its EPC model, while also diversifying into renewable energy with solar EPC, green energy projects, and a planned 1 GW solar module manufacturing plant. Further enhancing its offerings, RMC is venturing into water management infrastructure, incorporating IoT technologies, and delivering high-value, customized solutions to DISCOMs, solidifying its role in India's sustainable infrastructure development.

Revenue from operations surged by 19.86 per cent YoY to Rs 104.78 crore in H1FY25, compared to Rs 87.42 crore in H1FY24. 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. 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.

On Tuesday, shares of RMC Switchgears Ltd hit a 5 per cent upper circuit to Rs 603.35 per share from its previous closing of Rs 574.65 per share. The company has a market cap of Rs 922 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. The stock is up by 60 per cent from its 52-week low of Rs 379.05 per share and gave multibagger returns of over 4,200 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.