S & S Power Switchgear Ltd – 50 Years of Sparks, Shocks, and a Fraud Bill of ₹1.58 Crore
1. At a Glance
S & S Power Switchgear Ltd, born in 1975, is one of those old-school electrical equipment companies that refuse to die quietly. From disconnectors to vacuum circuit breakers, it has powered grids in India and the UK. Today, it boasts a ₹444 crore market cap, trades at a P/E of 336 (yes, triple-three-six), and somehow has an ROE of –9%. Imagine a student who failed maths but charges IIT fees. That’s S&S.
2. Introduction
The company operates in a high-voltage world, literally—supplying switchgear and control systems to utilities, railways, hydro OEMs, cement, O&G, and metals. In the last two years, it has been in the headlines for three things:
UK sales dominance: Nearly 70%+ of revenues once came from overseas markets.
Corporate drama: Open offers, preferential allotments, and the famous online fraud case of ₹1.58 crore in Dec 2024.
Financial tightrope: Sales growing decently, but profits barely registering on the multimeter.
It’s the kind of stock where you feel proud it survived 50 years but also wonder if it survived despite its management.
Question for you: would you trust a switchgear company that can’t protect its own bank account from cyber fraud?
3. Business Model – WTF Do They Even Do?
S&S operates in Transmission & Distribution (T&D) equipment, making and servicing:
Products: Disconnectors, vacuum circuit breakers, control & relay panels.
Customers: Utilities, railways, mobility infra, O&G, cement, and metals.
Revenue Mix (FY22):
Disconnectors: ~20%
Control & Protection Equipment: ~80%
Geography: UK ~71%, India ~29%
Translation: They sell heavy electrical kit to global utilities while also repairing old equipment like your neighbourhood AC technician—except instead of ₹600 per call, it’s multi-crore EPC contracts.
4. Financials Overview
Quarterly Numbers (₹ Cr):
Source table
Metric
Jun’25 (Latest)
Jun’24 (YoY)
Mar’25 (QoQ)
YoY %
QoQ %
Revenue
59.4
36.2
55.5
64.1%
7.1%
EBITDA
3.0
-0.3
0.2
NA
1,217%
PAT
1.77
0.90
-0.17
96%
NA
EPS (₹)
1.43
0.63
-0.14
127%
NA
Commentary:
Strong YoY rebound.
PAT still wafer-thin at ₹1.77 crore, but better than consistent losses.
EPS is annualising to ~₹6, making the 336x P/E look even more absurd.
5. Valuation – Fair Value Range Only
Method 1: P/E Multiple
EPS (annualised): ~₹6.
Industry average P/E: ~40x.
Fair Value = ₹240.
Method 2: EV/EBITDA
FY25 EBITDA: ~₹6 crore.
EV/EBITDA multiple 15x → EV ~₹90 crore.
Current EV ~₹452 crore.
Method 3: Book Value
Book Value = ₹56.
Even at 2–3x BV → ₹110–170 range.
Fair Value Range (Educational Only): ₹110 – ₹240 (Disclaimer: Educational purposes only, not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Vedanta Order: ₹30+ crore pot controller order (subsidiary).
Godrej Order: ₹15 crore disconnector order.
Open Offer (2024): Hamilton & Co. launched a takeover attempt for 25%+ stake.
Fraud: Online transfer scam of ₹1.58 crore in Dec 2024 (revised announcement suggests internal controls weaker than a second-hand inverter).
Fundraising: Preferential issue of 61 lakh shares approved.
Restructuring: Plans for acquisitions and operational rejig.
This company has more drama than a Zee TV soap—fraud, takeover fights, and fundraising all
