RTS POWER CORPORATION LTD (531215) - STOCK OF THE WEEK

Dear Friends, Today I am expressing my view on Eletrical and related company

RTS POWER CORPORATION LIMITED (531215)

RTS Power Corporation Limited is an ISO 9001 Certified company and promoted by Bhutoria Group engaged in providing relevant and power-conversion and power quality solutions in India.

RTS is mainly engaged in the business of manufacturing of High Voltage Dry Type transformers, Cables, Conductors and related products. Bhutoria Group, an enterprise whose history spans more than 175 years.

RTS Power is approved vendor and regular supplier for all State Electricity Boards in India. The company is also an approved vendor for Defense Services (MES & Air force), Indian Railways, and many Telecom and Private Companies.

RTS Having Total 8 manufacturing and Power facilities across India. Transformer manufacturing facilities are mainly situated in Rajasthan, Uttar Pradesh and West Bengal. RTS has integrated facilities for processing of CRGO core, slitting, cutting and annealing, conductor manufacturing (drawing, annealing and paper covering), transformer oil processing, tank fabrication, core assembly, winding, assembling and tanking. 

PRODUCTS

Company’s products mainly fall under two categories Transformers and Cables & Conductors.

TRANSFORMERS

Distribution Transformers: 
RTS  manufacture a range of Distribution Transformers suitable for use in Utilities and industries. Distribution Transformers ranging between 16 KVA to 1000 KVA range with 11/33 KV class along with various options and features that are custom-made as per requirement. 

Power Transformers: 
Company  manufacture a range of Power Transformers between Upwards of 1 MVA to 50 MVA range with 11/33/66/132 KV class including two winding, three winding and auto transformers. 

Dry Type Transformers: 
RTS  manufacture and supply Dry Type Transformers from 25 KVA upto 2.500 MVA, 11KV). This department is equipped with vacuum impregnation tanks, multi-faceted ovens, dust free manufacturing area and other equipment required specially for the Dry type transformers. Company also provide a compact Sub Station solution for the above mentioned range.

CABLES & CONDUCTORS

Company’s Cable division is situated in Jaipur with following products.

Manufacture of Conductor: AAC,AAAC, ACSR

Manufacture of XLPE/PVC Insulated (LT/HT) Power & Control Cable upto 33000 Kv

Manufacture of Aerial Bunch Cable Single & Multi Core

Manufacture of House Wiring Cables (PVC ) FR & FRLS

Manufacture of Railway Signaling Cables

SERVICES

Apart from the manufacturing, RTS is also engaged in the services and maintenance of the transformers. In order to ensure that customers receive prompt after sales service for purchased transformers, RTS have set up dedicated servicing teams at  facilities in Jaipur, Agra and Kolkata. This has ensured timely response to the servicing needs of our customers. RTS has extensive and modern capabilities in repair and re-engineering of damaged transformers of all makes across the range - 10 kVA, 11/.433 kV to 55 MVA 132/33 kV.

CUSTOMERS

Company is having strong customer base across major Industries. State Electricity Boards and Railways and Defence are the growing Customers for the company. Company is serving for Telecom companies like AIRCEL, BSNL, and VODAFONE etc.

Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 67.25%

Company posted 107 Cr top line in Last Financial year.

Net profit is 1.86 Cr bottom-line in Last Financial year.

Stock is trading low PE compared to industry & its major peers.

Book Value: Rs 57.2

Debt to equity ratio is 0.61

Stock is trading at Rs 32

Stock is trading below its Book Value & PE is low as compared to its peers. Company is mainly engaged in the business of Power Transformers for various industries as well as Government agencies.

Govt. push on Rural electrification and Electrification of Railways is a huge positive for the stock. Considering above and performance of the company stock will rerate and will give handsome returns to the investors in near future.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”