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INVESTMENT INSIGHTS

Check Before You Invest : RMC Switchgears Ltd

BSE: 540358 NSE: RMC ISIN: INE655V01019
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does RMC Switchgears Ltd belong to?
RMC Switchgears Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is RMC Switchgears Ltd a good quality company?
RMC Switchgears Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is RMC Switchgears Ltd undervalued or overvalued?
RMC Switchgears Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is RMC Switchgears Ltd a good buy now?
RMC Switchgears Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of RMC Switchgears Ltd?
RMC Switchgears Ltd revenue growth is 83.2% for FY-2025 , which is above its 5 year CAGR of 39.7% , indicating faster growth.
Q.2 Gross Profit margin of RMC Switchgears Ltd?
RMC Switchgears Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.3% for FY-2025 , which is in line with its 5 year median of 12.3% , indicating stable margins.
Q.3 Operating Profit Margin of RMC Switchgears Ltd?
RMC Switchgears Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.67% for FY-2025 , which is below its 5 year median of 17.65% indicating decreasing margins.
Q.4 Net Profit Margin of RMC Switchgears Ltd?
RMC Switchgears Ltd Net Profit Margin is 9.93% for FY-2025 , is above with its 5 year median of 8.62%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 12.3 12.3
Operating Profit Margin 16.67 17.65
Net Profit Margin 9.93 8.62
Q.5 Return on Asset of RMC Switchgears Ltd?
RMC Switchgears Ltd Return on Asset is 14.83%, which is above its 5 year historical median of 10.96%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of RMC Switchgears Ltd?
RMC Switchgears Ltd Return on equity is 37.57% for FY-2025 , which is above its historical median of 28.16%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RMC Switchgears Ltd?
RMC Switchgears Ltd Return on capital employed is 37.21% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of RMC Switchgears Ltd?
RMC Switchgears Ltd Cash conversion cycle is 65 days, below its historical median of 105 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.76 1.48
ROE 37.57 28.16
ROCE 37.21 29.6
Cash Conversion Cycle 65 days 105 days
Q.9 Debt to Equity ratio of RMC Switchgears Ltd?
RMC Switchgears Ltd Debt-to-Equity ratio is 0.55 , which is above with the industry average of 0.34 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of RMC Switchgears Ltd?
RMC Switchgears Ltd Debt to cash flow from operations is 3.8 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RMC Switchgears Ltd?
Promoters hold 51.97% of the RMC Switchgears Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RMC Switchgears Ltd vs industry peers?
RMC Switchgears Ltd revenue CAGR is 39.73% , compared to the industry median CAGR of 13.21% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 316.3 143.5
Gross Profit 38.9 14
Operating Profit 53 13
Net Profit 31 8
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.76 1.05
ROE 37.57 9.8
ROCE 37.21 13.56
Cash Conversion Cycle (days) 65.05 102

Valuation & price assessment

Q.1 Stock return of RMC Switchgears Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 111.22% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 111.2% 36.7% -31.5%
Q.3 Valuation ratios of RMC Switchgears Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 14.56 51.32 50.19
Price to Book 4.28 1.04 3.60
Price to Sales 1.45 0.71 2.68
EV to EBITDA 9.31 10.99 19.22

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