RMC Switchgear - Earning Growth

RMC Switchgear LTD-

I recently visited RMC in Jaipur.

Mar Cap- 27 Cr (SME BSE).

Business- Company manufacture all type electrical enclosures in ultra modern plant spread over av area of 8 lac Sq ft., Clients- Tatas, L&T, NCC, KEI , Govt power companies, etc.

Has 20 acre of land near jaipur value of Rs 30 Cr.

This segment has done last year Rev of 51 Cr & Pat of 1.5 Cr,

In this H1 company has already done pat of Rs 1.14 Cr., In H2 company will do good business, total order book near 150 Cr. Recently company got order of Rs 80 Cr from electrical division, which will execute in next 15-18 months.Full year company pat in this segment will be near about Rs 2.5 Cr.
which will grow by 25% cagr.

6 month back company appointed new CEO- ATUL DIXIT (IIM Banglore)- Head of strategy and business development in Greenply for new business Engineered marble sheet under brand name (LAMINA). This product will be used in home as a marble sheet.
RMC has appointed near about 8 distributors in new business, revenue target of Rs 10-15 Cr in current year & Rs 40-50 Cr in next year with margin of 16%-20%,
No more capex is required, & working cycle will improve in coming years.

FACTORS TO WATCH :-

  • Getting big order & entering into next league in the electrical segment, to see that company can get more order in this division.
  • Engineered Lamina new segment big market to cover. Lamina in acceptance in market to be seen in coming months.
    Debt of Rs 32 crs, it should not be increased in future.
    Debtors should not cross more than 90 days .

My views may be biased… do your own research before investing.

If anyone has any input on this stock please provide…

Thanks

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