Smart meter stock hits 5% upper circuit after plans to set up ₹100 Cr solar plant in Jaipur

During Monday’s trading session, the shares of a leading player in the electrical infrastructure solutions sector hit a 5 percent upper circuit at Rs. 1,104.45 on BSE, after announcing plans to set up a Solar Module Manufacturing plant in Jaipur, Rajasthan, with an investment of Rs. 100 crores. 

With a market cap of Rs. 1,138.5 crores, the shares of RMC Switchgears Limited opened in the green at Rs. 1,066, up by around 1.3 percent, as against its previous closing price of Rs. 1,051.9. 

What’s the news: 

RMC Switchgears Limited, as per its latest regulatory filings with the stock exchanges, announced plans to establish a Solar Module Manufacturing Plant with an annual production capacity of 1 GWp, alongside a Solar Module Mounting Structure manufacturing unit of the same capacity in Jaipur, Rajasthan. 

With an estimated capex of Rs. 100 crores, this project highlights RMC’s commitment to enhancing its renewable energy capabilities and promoting sustainable growth. 

The new facility will be located on land adjoining the company’s existing operational plant, ensuring seamless integration and improved operational efficiency. The project’s capex will be financed through a balanced mix of internal accruals, equity, and debt. 

Both plants are expected to be operational by July 2025, with commercial revenue generation anticipated starting from August 2025. 

Financials: 

RMC Switchgears reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 37.6 percent, increasing from Rs. 125 crores in FY23 to Rs. 172 crores in FY24. 

Similarly, during the same period, the company’s net profit increased from Rs. 12 crores to Rs. 15 crores, representing a rise of around 25 percent YoY. 

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Stock Performance: 

The stock has delivered positive returns of nearly 88.6 percent in one year, as well as around 81.3 percent returns in the last six months. So far in 2024, the shares of RMC Switchgears have given positive returns of about 87.2 percent.

About the company: 

RMC Switchgears Limited is primarily engaged in the business of Switchgear Engineering, and EPC contracts for the power distribution/transmission sector. 

Additionally, it has established a strong reputation in the smart meter enclosure market, supporting utilities across India under initiatives such as the Revamped Distribution Sector Scheme (RDSS). 

The company is a leading player in the electrical infrastructure solutions sector, specialising in the manufacturing of electrical enclosures that prevent electrical theft and enhance safety by preventing electrocution. 

Written by Shivani Singh 

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