📅 EduInvesting.in | May 15, 2025
🎯 Ticker: BSE: 544291 | CMP: ₹1,312.85
💥 “It laid underground cables… and then quietly laid the foundation for 300% gains.”
🧠 TL;DR – For the Bhai Who Scrolls, Not Reads
- 🏗️ EPC Infra company from Gujarat
- 📅 IPO launched in Dec 2024 at ₹335 per share
- 📈 Stock now trading at ₹1,313 – up almost 4x in 5 months
- 💰 TTM EPS: ₹57.74 | P/E: ~22.7x
- 💸 Declared ₹1/share dividend in FY25
- 📦 Revenue up, margins stable, and order flow strong
- ⚠️ Under ASM Stage 1 – not because it’s shady, but because it’s volatile AF
- 🎯 Fair Value = ₹1,500 (Bull Case)
🔌 1. About the Company – “This isn’t Power Grid’s cousin. This is EPC with speed.”
Rajesh Power Services Ltd is a Gujarat-based EPC contractor — not a PSU, not a PSU wannabe. They’re a full-scale execution firm doing:
- Substation construction
- Underground cabling
- HV & EHV power lines
- Infrastructure for DISCOMs and state governments
Translation: They do the boring infra work no one claps for — but everyone gets paid for.
👨💼 2. KMP – “Audit se pehle ye naam yaad rakho”
| 👤 Name | 💼 Role |
|---|---|
| Kurang R. Panchal | Managing Director |
| Jyoti D. Mochi | Compliance Officer |
| Dinesh Thakkar & Co. | Statutory Auditor |
| Maulik Shah & Co. | Cost Auditor |
| Naimish Shah & Co. | Internal Auditor |
No drama. No resignations. No fishy delays. Bas kaam, paisa, and paperwork on time.
💸 3. Financials – “SME hai par performance largecap se tez hai”
| Metric | Value (FY25 Est) | FY24 (Standalone) |
|---|---|---|
| Total Revenue | ₹1,107.4 Cr | ₹285 Cr |
| Net Profit | ₹93.36 Cr | ₹26.02 Cr |
| EPS (TTM) | ₹57.74 | ₹17.10 (Previous EPS) |
| Dividend | ₹1 per share | – |
| ROE (Est.) | ~35%+ | 🔥 |
| P/E (based on TTM EPS) | ~22.7x | Reasonable |
| Market Cap | ₹2,364 Cr |
Growth is not linear — it’s vertical. This is what SME dreams are made of.
🎯 4. FV Calculation – “Kya ₹1,313 pe lena safe hai?”
Let’s stay realistic but optimistic:
- Projected FY26 EPS = ₹70 (if growth normalizes)
- Fair P/E = 22–25x (considering execution quality + SME risk)
- 🎯 Edu Fair Value = ₹1,540 – ₹1,750 range
At CMP ₹1,313 → 15–30% upside possible if growth sustains and margins remain >15%.
📈 5. Growth Outlook – “Power infra toh abhi shuru hua hai bhai”
Tailwinds:
✅ India’s capex on grid modernisation & rural electrification
✅ EPC firms with proven execution are rare — and this one just went public
✅ Clean balance sheet = eligibility for bigger infra contracts
✅ Gujarat base = strong political+infra pipeline = better L1 win chances
Risks:
🚩 Execution delays = revenue lags
🚩 Cash flow mismatches common in EPC
🚩 SME segment = volume issues + high volatility
🚩 Inclusion in ASM Stage I due to sharp price movements
🧠 6. EduInvesting Verdict – “This SME ain’t small anymore”
Rajesh Power has done something rare — built infra and investor confidence.
✅ No dodgy promoters
✅ EPS is real, not engineered
✅ Orders are government-backed
✅ Dividends declared
✅ Auditors intact
It’s not a Zomato-style hype rally — this is profit-powered compounding.
Buy if:
- You’re okay with 5% daily volatility
- You trust audited numbers
- You believe infra is still early innings
Avoid if:
- You’re allergic to SME circuits
- You want to exit every 2 weeks
- You panic when stock dips 10% on no news
⚠️ 7. Risks & Red Flags – “No sasti heroics here, but stay alert”
- ASM = Surveillance Measures → Can affect liquidity
- No institutional buying yet
- Infra sector billing cycles = receivables risk
- EPC = lumpy business → Don’t expect uniform growth each quarter
📸 Meme of the Day
Retail investor who bought Rajesh Power at ₹335, logged in today
“Mujhe multibagger bolke bulao.”
📌 Tags:
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