RMC Switchgears Limited (RMC) is experiencing a surge in order inflows, securing fresh orders aggregating ₹344.10 crore. The largest of these is a set of 12 Letters of Acceptance (LOA) from Paschim Gujarat Vij Company Limited (PGVCL) worth ₹333.80 crore. These LOAs cover turnkey contracts for the conversion of existing 11 kV HT and LT overhead networks into an underground cable network with a Ring Main System.

Key Order Details

The PGVCL packages are spread across four circles, with the Bhavnagar Circle receiving the highest number of packages totaling ₹251.21 crore. The remaining circles include Jamnagar, Anjar, and Junagadh, with respective values of ₹35.98 crore, ₹28.26 crore, and ₹18.36 crore. These orders are expected to be executed over periods ranging from 12 to 18 months.

Additional Orders

In addition to the PGVCL mandate, RMC has received orders from Genus Power Infrastructures Limited worth ₹5.02 crore for UND S_Panel mounting structures and from Jaipur Vidyut Vitran Nigam Limited worth ₹2.84 crore for 100 Amp. L.T. Distribution Kiosks. Furthermore, a Letter of Intent from Southern Power Distribution Company of Telangana Limited worth ₹2.44 crore for LT Distribution Boxes has been received. These additional orders are scheduled to be executed over six months and 12 months respectively.

With these new awards, RMC’s unexecuted order book now stands at approximately ₹1188 crore. These orders are expected to contribute positively to the company’s revenue and growth prospects. Notably, none of these orders involve related party transactions.

Commenting on the development, Mr. Ankit Agrawal, CEO and Whole-Time Director of RMC Switchgears Limited, stated: “We are seeing encouraging traction in order inflows, and orders aggregating ₹344.10 crore reflect the confidence our utility customers continue to place in RMC. The mandate from PGVCL is a turnkey engagement that draws on the full breadth of our capabilities, from survey and design through to installation, testing, and commissioning. Our focus now turns to disciplined execution. We will continue to keep our shareholders and the market informed of material developments as they arise.”

Source: NSE Corporate Announcement

Fundamental & Technical Analysis of RMC Switchgears Limited

RMC Switchgears Limited belongs to the Industrials › Electrical Equipment & Parts sector. Here’s a quick read on where the business and the stock stand today.

RMC falls 26.9% over three months and has not found a floor yet. The PEG of 0.59 signals undervaluation relative to growth. It is a potential re-rating candidate. Thin margins at 5.6% leave limited room for error — any demand softness or cost spike hits the bottom line hard. The stock gains 11.7% in the last month, recovering from the three-month slide. However, it is too early to call this a confirmed reversal. The stock rises -26.9% in three months on 47.6% revenue growth. As a result, the market gives it more credit than the fundamentals strictly justify. Watch the next quarterly results. If growth accelerates, the move makes sense. If not, expect some gains to unwind. Check Fundamentals of RMC Switchgears Limited.