Rajesh Power- provides consultancy to state transmission and distribution companies, private utilities, and industries, Not only a solid EPC Player in Power & Transmission with strong customer base & order-book, But also has invested in HKRP Innovations, which provides customized IT-based solutions to the energy sector, Rajesh Power holds 26% in this HKRP which could increase further in future.
Market Cap ₹ 2,541 Cr.
Current Price ₹ 1,411
Stock P/E 27.2
Current orders book: 3628cr+ (Majority of it is unexecuted and has to be completed within 18-24 months) , Super Solid OB:collision:
Current Pipeline: 1500 cr as of now (Say 50-60% will be added into the orderbook within 3-6 months), But Pipeline will be keep evolving with time as they will participate in more tenders.
Power Transmission: 1029cr+ (66 KV+)
Power Distribution: 2660cr+ (<33 KV)
Competition in Transmission:
KEC Intl [24000 cr mcap]
KEI Industries (34000 cr mcap]
Universal Cable
Competition in Distribution:
Lumino
Monte Carlo
Vijay Electricals
Rajesh Power is doing or worked for GETCO, UGVCL, PTCUL, DGVCL, MGVC & many other strong clients like torrent power, adani, reliance, powergrid, L&T, Gift, srf, maruti, etc
From the 66kv work it includes the work on 66kv cable laying, commissioning of 66kv substations , 66kv DC Line, 66KV/132 KV Underground Cable work, commissioning & installation of 66kv switchyard, etc
Which shows the strong presence & dominance of Rajesh Power in 66kv ,132kv, 220kv ,MVA Substations, Underground Cable work, Underground HVDC, Grid Management & Network Design & Analysis, etc
Look at the size of companies whom they are giving the competition, They believes UG cabling + O&M + lean EPC model = moat.
Geographic Expansion: From Gujarat to Rajasthan, MP, Maharashtra & Uttarakhand
HKRP Innovation: Strong traction in IoT solutions for DISCOMs, should do well in FY26.
~80% from Gujarat and balance from Rajasthan. General tender closure timeline 3~6 months
Majority of Orderbook is unexecuted. Average order size is 150-200cr, Margins are high in Big Orders.
They are looking to expand into other states but as of now 90% revenues currently from Gujarat; Top 10 clients include distribution utilities from GETCO, IOCL, Torrent Power etc.
Looking to leverage operational presence in Rajasthan (3-4 complex projects under execution), Madhya Pradesh, Maharashtra, Uttarakhand for expansion into states other than Gujarat. Actively evaluating the opportunities in other states.
Going ahead will strategically focus on renewable energy space projects.
300 engineers on payroll; 600-700 management people in total; recently increased mid-management strength; senior level recruitment is an on-going process.
Opportunity Size :1 lakh crore is expected to be spent by GETCO in Gujarat alone for transmission infrastructure which is nearly ~4x from previous investments per year; Upgrade projects of 11 kV and below distribution systems also planned by Gujarat government as per the RDSS scheme, Management is actively looking to get more from here.
Also working towards projects for higher kV transmission lines like 220kv,400kv.
Solar project of 1 MW for captive consumption is expected to be completed in few months from date of call
HKRP recorded ~174cr revenues, ~20cr PAT in FY25, Good Traction in HKRP business.
30-60 days payment cycle; no major Working Capital constraints
Interest cost in 9MFY25 was higher due to public offering happening only in Dec’24; reduced later using IPO funds. Short Term provisions are statutory tax provisions
In advance talks for Green Hydrogen Projects for EPC contracts with collaboration with institutions; plans are under initial mdevelopment stage, will be shared on finalization
Executed 4 Gas Insulated Substation projects on turnkey basis; with Rajesh Power being amongst few players in GIS space, That actually shows up their capabilities.
Aims to be amongst the prominent players in transmission EPC with extensive know-how in underground cable network with expertise in installation, design & maintenance of ~350 KMs of 220 kV cable systems.
As of now no plans to enter in electrical components manufacturing as of now; no hurdles seen in near future on execution.
