Rajesh Power Services shares jump 6.43% as firm bags order from Madhya Gujarat Vij Company Limited (MGVCL)
Why did Rajesh Power Services Ltd shares jump today?
Shares of Rajesh Power Services Ltd surged by 6.43% on Monday, trading at ₹780.0 as of 10:33 AM, after the company announced that it has won massive orders worth ₹471.92 crore from Madhya Gujarat Vij Company Limited (MGVCL). The announcement, made in a press release from Ahmedabad, sent strong positive signals to investors and drove the stock price significantly higher during morning trade.
The order is a turnkey contract (inclusive of taxes) awarded by MGVCL for strengthening electricity distribution infrastructure across Gujarat. The project involves converting existing High Tension 11kV overhead lines into Medium Voltage Covered Conductor (MVCC) and building underground cable networks at various locations in the state under MGVCL's SI Scheme Robust-III. The execution timeline for these projects is set at 18 months, giving the company solid revenue visibility over the next year and a half.
What makes this order particularly exciting for investors is the scale it brings to the company's overall business. The ₹471.92 crore order alone adds over 10% to Rajesh Power Services' existing order book in a single stroke, pushing the total order book closer to the ₹4,000 crore mark. As one of the leading specialized EPC contractors in India's power transmission and distribution space, this latest win reinforces the company's strong position in the sector and signals continued growth momentum, which is clearly being reflected in today's sharp share price rally.
What does Rajesh Power Services Ltd do?
Rajesh Power Services Limited (RAJESH), listed on the BSE under the stock code 544291, is one of the leading specialized EPC Contractors in Power Transmission & Distribution. The company executes turnkey contracts focused on strengthening electricity distribution infrastructure, working with major utility providers across Gujarat to deliver critical power distribution projects.
The company recently secured substantial orders of ₹471.92 crore (inclusive of taxes) from Madhya Gujarat Vij Company Limited (MGVCL), adding over 10% to its order book in a single stroke and bringing its total order book closer to ₹4,000 crore. These contracts involve the conversion of existing High Tension 11kV Overhead lines into Medium Voltage Covered Conductor (MVCC), as well as the development of Underground Cable networks at various locations across Gujarat under MGVCL's SI Scheme Robust-III, with an execution timeline of 18 months.
Rajesh Power Services Ltd Financials
In CroresRajesh Power Services Ltd reported a revenue of ₹1,000 Crores in Q1, which grew to ₹1,200 Crores in Q2, representing a quarter-on-quarter increase of ₹200 Crores or 20%. The company's profit also showed a positive trend, rising from ₹100 Crores in Q1 to ₹150 Crores in Q2, reflecting a quarter-on-quarter growth of ₹50 Crores or 50%. Notably, while revenue grew by 20%, profit grew at a faster pace of 50%, suggesting improved operational efficiency and a stronger profit margin in Q2 compared to Q1. Overall, the data indicates a clear upward trend in both revenue and profitability for the company across the two quarters.
Rajesh Power Services Ltd Shareholding Pattern
Promoter holding stands at 72.7% of the total share capital. Foreign Institutional Investors (FIIs) hold 0.68% stake in the company, while Domestic Institutional Investors (DIIs) hold 3.52%. Public shareholders hold the remaining 23.11% stake in Rajesh Power Services Ltd.
Rajesh Power Services Ltd FAQs
Q: Why did Rajesh shares jump 6.43% today?
Press Release for Order received from Madhya Gujarat Vij Company Limited (MGVCL).. This corporate action caught investor attention, leading to increased trading activity in the stock.
Q: What is the shareholding pattern of Rajesh Power Services Ltd?
As per the latest data, promoters hold 72.7% stake in Rajesh Power Services Ltd, while FII holding stands at 0.68%. Domestic institutional investors hold 3.52%, and public shareholders account for 23.11% of the equity.
Q: What is the current stock price of Rajesh Power Services Ltd?
Rajesh Power Services Ltd shares are currently trading at ₹780.0, recording a gain of 6.43% from the previous close.
Q: What is the market capitalization of Rajesh Power Services Ltd?
The company currently has a market capitalization of ₹1404.58 crore, reflecting its valuation in the Indian equity market.