Three lesser-known switchgear stocks driving the growth of data centre industry

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Subscribe to enjoy similar stories. In October 2024, when the theme surrounding switchgear stocks was just picking up, we wrote about the top companies involved in the industry. We discussed growth prospects of key companies such as HPL Electric & Power Ltd, Voltamp Transformers Ld, among others, and what the future holds in store for them.

Since then, several companies have emerged in this space, all planning big things for their switchgear vertical. In this article, we look at a few of these switchgear stocks that are still under the radar. As switchgears will continue to play a key role, acting as a proxy for various growth sectors like data centres and electrical equipment, these companies have a long runway ahead of them.

Aartech Solonics is a system solution-oriented R&D enterprise in the field of specialized and selected energy appliances. The company manufactures electricity distribution and control apparatus. It caters to various growth sectors, including renewable energy, power transmission and distribution, defence and exploration, and healthcare, among others.

Aartech has some of the big names such as Bharat Heavy Electricals Ltd, NTPC Ltd, Steel Authority of India Ltd, Hindalco Industries Ltd, Larsen and Toubro Ltd, Siemens Ltd, ABB India Ltd, and DLF Ltd as its clients. It also has two subsidiaries that deal in energy storage applications and startup ecosystems. The company’s sales and net profit have grown at a compounded annual growth rate (CAGR) of 19% and 21%, respectively, over the past five years.