Stock Market Today: Shares of RMC Switchgears were locked in the 5% upper circuit limit for the second consecutive day on Tuesday, December 17, reaching a fresh all-time high of ₹1,159.65 apiece after securing a significant order for solar pumps.

The company informed investors on Monday through an exchange filing that it had received a Letter of Acceptance (LOA) from a reputed system integrator for the supply, installation, and commissioning of 5,000 solar pumps in Maharashtra. Valued at ₹90 crore, the LOA includes 3HP, 5HP, and 7HP solar pump systems and is slated for completion in FY25-26.

Maharashtra, under its ambitious clean energy push, has set a target of deploying 1.5 million solar pumps, backed by a ₹100 billion allocation to transform the agricultural sector. With over 100,000 solar pumps already installed, the state’s programme reflects immense growth potential in the sector.

Commenting on the development, Ankit Agrawal, CEO and Whole-Time Director of RMC Switchgears Limited, said, “This LOA is a significant milestone for RMC’s solar-based EPC business, showcasing our capabilities in delivering real-world solar solutions and aligning with Maharashtra’s clean energy ambitions.”

“It reinforces the strategic rationale behind our investment in solar module manufacturing, enabling us to efficiently execute projects and contribute to the nation’s renewable energy objectives. As we continue to expand our portfolio, this project represents another step forward in achieving our ‘Vision-2030’ goals,” Agrawal added.

The announcement follows RMC’s recent decision to establish a state-of-the-art solar module manufacturing plant in Jaipur, Rajasthan, with an investment of ₹100 crore. This backward integration strategy is aimed at reducing reliance on external suppliers and supporting the growing demand for solar modules in large-scale projects such as this solar pump initiative.

The project’s capex will be financed through a prudent mix of internal accruals, equity, and debt, underscoring RMC’s disciplined financial strategy. Both plants are expected to be operational by July 2025, and commercial revenues are expected from August 2025, as per the company’s regulatory filing. 

Stock advances over 5,000% since June 2022

The company’s shares have consistently maintained an upward trajectory, starting from their June 2022 low of ₹22.50 apiece to the current market price of ₹1,159, delivering a staggering return of nearly 5051%. During this period, an investment of ₹1 lakh would have turned into over ₹51.50 lakh.

After a period of decline from CY18 to CY20, resulting in a 75% loss of investors’ wealth, the stock made a strong comeback. It delivered a solid return of 45% in CY21, followed by an outstanding gain of 1,039% and 243% in the subsequent years. In the current year so far, the stock has rallied another 92%.

RMC Switchgears 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.

The company has recently expanded its focus to include renewable energy initiatives, particularly in solar and green energy EPC and IPP solutions, as part of its broader strategy to create value from India’s clean energy transition. The company is also gearing up to participate in the ₹9 trillion investments planned by GOI for the transmission segment through its EPC model.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.