8,600 Per Cent Returns & Rs 850 Crore Order Book: Solar Company Secures Rs 90 Crore LOA for 5,000 Solar Pumps in Maharashtra
The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 379.05 per share and a whopping 8,600 per cent in 5 years.
RMC Switchgears Limited has secured a Rs 90 crore Letter of Acceptance (LOA) to supply, install, and commission 5,000 solar pumps in Maharashtra. This significant order, received from a reputed system integrator, includes 3HP, 5HP, and 7HP solar pump systems. The project is scheduled for completion in the fiscal year 2025-26 (FY25-26), marking a substantial contribution to Maharashtra's clean energy initiatives.
This achievement highlights RMC's growing role in India's renewable energy transition. Maharashtra has set an ambitious target of deploying 1.5 million solar pumps, supported by a Rs 100 billion allocation, aiming to revolutionize the agricultural sector. With over 100,000 solar pumps already installed in the state, this new order positions RMC to capitalize on the immense growth potential within this sector.
Furthermore, this announcement comes after RMC's recent decision to establish a new Solar Module Manufacturing Plant in Jaipur, Rajasthan, with a Rs 100 crore investment. This strategic backward integration aims to reduce dependence on external suppliers and cater to the increasing demand for solar modules in large-scale projects, such as the current 5,000 solar pump initiative in Maharashtra. This move reinforces RMC's commitment to sustainable solutions and strengthens its position in India's renewable energy market.
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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.
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. 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 company has a market cap of Rs 1,195.40 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 Tuesday, shares of RMC Switchgears Ltd hit a 5 per cent upper circuit to Rs 1,159.65 per share from its previous closing of Rs 1,104.45 per share. The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 379.05 per share and a whopping 8,600 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.