Here’s a summary of the RMC Switchgears story:
🚀 RMC Switchgears: A Small-Cap Multibagger Soaring 5,900% in 5 Years!
RMC Switchgears, a small-cap stock specializing in switchgear engineering and power distribution contracts, has delivered phenomenal returns to its shareholders. Despite recent market volatility, the stock has seen a massive 3,211% gain in three years and an astonishing 5,900% gain over the past five years.
This means a ₹1 lakh investment in RMC Switchgears five years ago would now be worth ₹60 lakh! The stock has surged from ₹13 to its current trading price of ₹775 per share. After a period of decline between 2018 and 2020, the stock gained significant momentum, rising 45% in 2021, an impressive 1,039% in 2022, and another 83% in 2024.
🌱 Expansion into Renewable Energy Fuels Growth
The stellar rally is largely attributed to improved financial performance and the company’s strategic expansion into renewable energy, focusing on solar and green energy EPC and IPP solutions. This move aims to capitalize on India’s clean energy transition.
Notably, RMC Switchgears recently secured a significant order from the Government of Rajasthan for the installation of 50 MW of rooftop solar systems across state government buildings in Jaipur and Dausa. This ₹320 crore contract includes a one-time revenue of ₹229 crore and a steady ₹91 crore in recurring revenue over 25 years for operations and maintenance services, ensuring a long-term income stream.
📊 Strong Financials and Shareholding
RMC Switchgears has been rewarding its shareholders, with retail investors holding 42.1% as of March 2025. Foreign Institutional Investors (FIIs) hold 5.1%, while promoters retain a majority stake of 52.1%.
The company’s recent financial results have been impressive. For the second half of FY25, RMC Switchgears posted a consolidated net profit of ₹21.26 crore, more than tripling the ₹6.83 crore recorded in H2 FY24. Net sales for the same period surged 150.4% year-on-year to ₹213.38 crore. For the full FY25, consolidated net profit jumped 111.2% to ₹31.45 crore, with net sales growing 84.3% to ₹318.16 crore.
