From ₹13 to ₹775: Multibagger small-cap stock turns ₹1 lakh into ₹60 lakh in 5 years. Do you own?

Mint

23-05-2025

Multibagger small-cap stock: RMC Switchgears, which is engaged in switchgear engineering and ECI contracts for the power distribution and transmission sector, has seen its share price rise rapidly in recent years, significantly multiplying shareholders' wealth.
Despite a sharp pullback in recent months—amid market volatility and profit booking—RMC Switchgears' stock is still trading with a massive 3,211% gain over the last three years and a phenomenal 5,900% gain over the past five years, making it one of the biggest wealth creators in the Indian stock market.
During this period, the stock has zoomed from ₹ 13 to its current trading price of ₹ 775 apiece, turning a ₹ 1 lakh investment into ₹ 60 lakh
After remaining on the sidelines between CY18 and CY20, during which it lost 75% of investor value, the stock picked up momentum in CY21, ending the year with a 45% gain, followed by an impressive 1,039% rise in 2022 and another 83% gain in 2024.
The stellar rally in the stock can be attributed to improved financial performance and its expansion into renewable energy, 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. Notably, it recently bagged an order for rooftop solar systems from the Government of Rajasthan.
In mid-March, the company announced that it had received a Letter of Acceptance (LOA) from the Government of Rajasthan for the installation of rooftop solar systems with a total capacity of 50 MW across state government buildings in Jaipur and Dausa.
Valued at ₹ 320 crore (including GST), the LOA includes a one-time revenue opportunity of ₹ 229 crore and recurring revenue of ₹ 91 crore over the next 25 years for operations and maintenance (O&M) services—establishing a steady long-term income stream for RMC, the company stated in its March 15 regulatory filing.
Meanwhile, the stellar rise in RMC Switchgears' share price has rewarded retail shareholders handsomely, as they collectively own 42.1% of the company as of the end of March 2025. Foreign Institutional Investors (FIIs) hold 5.1%, while the promoters retain a majority stake of 52.1%.
The company's shares have made significant strides on the exchanges in recent sessions, hitting the 5% upper circuit limits following the release of its financial performance for H2 FY25.
It posted a consolidated net profit of ₹ 21.26 crore in H2 FY25—more than three times the PAT of ₹ 6.83 crore recorded in H2 FY24. Net sales during the same period surged 150.4% year-on-year to ₹ 213.38 crore. In the corresponding period last year, the company's sales stood at ₹ 85.21 crore.
For the full FY25, RMC Switchgears reported a consolidated net profit of ₹ 31.45 crore, up 111.2% YoY, and net sales of ₹ 318.16 crore, reflecting an 84.3% YoY increase.
The company is a leading player in the electrical infrastructure solutions sector, specializing in the manufacturing of electrical enclosures that help prevent power theft and enhance safety by reducing the risk of electrocution.
It is also pursuing backward integration with a proposed 1 GW solar module manufacturing plant, aimed at strengthening its market position and aligning with India's broader goal of reducing import dependence and promoting domestic manufacturing.
In addition to its core business, RMC said it is expanding into water management infrastructure, incorporating advanced technologies such as IoT to enhance operational efficiency and service delivery.