Thread on RMC switchgears and how it eyes to grow to 10times its current size in few yrs.
1/n . They dont make switch gears, they make enclosures mainly which in layman terms is a box kind of thing for the protection of electrical system inside
1/n . They dont make switch gears, they make enclosures mainly which in layman terms is a box kind of thing for the protection of electrical system inside
2/n. No company can grow at 30%-50% CAGR without any sector tailwinds. So the second hero of our movie comes which is RDSS scheme (u can google)which is related to smart metering which shall replace old conventional metering to curb power losses. Itβs 300000cr scheme.
3/n . Now why not to catch smart metering companies then . Here comes PETER LYNCH QUOTE . He says we never know who will win the battle of smart metering but proxy companies to this theme will definitely win and RMC SWITCHGEARS is all about proxy play.
4/n Opportunity size for enclosures shall be of 10000 cr as per the management. And they are the biggest manufacturer in India so atleast 10% of the pie i.e 1000 cr, they will get.Their current mcap <100cr. Moreover they are associated with top metering manufacturers of india.
5/n Also they had made one IOT device which could achieve many things like scheduling of power, detect faults and send error codes to technicians , disconnect supply on load etc. BSES delhi and Maharashtra units were ready for lakhs of units but they didnt go ahead due to
6/n 10% chinese components. Now they are making it 100% indian and will come back soon. IOT in power is future and they can bag a bug pie here with RELIANCE (they also planning)
7/n They will start exporting full fledge by 2027 which will generate extra revenue. Their goals are
3 yrs 1000 cr revenue
5 yrs 2500 cr revenue
10 yrs 5000 cr
3 yrs 1000 cr revenue
5 yrs 2500 cr revenue
10 yrs 5000 cr
They have more value of orders than their mcap which speaks a lot on valuation. Dont google PE on screener which will show wrong data. They are around 30PE which is reasonable.
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