Listed Below is one of the leading players in the EV sector, engaged in the business of providing end-to-end solutions for manufacturing, procurement, and distribution of advanced EV Chargers, solar systems, and many more across India. It has delivered a return of 8,958 percent in just 5 years and multiplied the investor’s money.
Price Action
With a market capitalization of Rs. 3,856 Crores, the shares of Servotech Power Systems Limited hit a 10 percent upper circuit in the day’s trade at Rs. 173 per equity share, from its previous day’s close price of Rs. 157.28.
Long Term Gain
On October 29, 2021, the shares of Servotech Power Systems Limited closed at Rs. 1.91 per equity share, exhibiting a gain of around 8,958 percent compared to the current market price of Rs. 173. For example, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have turned to ~Rs. 91 Lakhs.
About the Company
Servotech Power Systems Limited is engaged in the business of providing end-to-end solutions for the manufacturing, procurement, and distribution of advanced EV Chargers, solar systems, solar-related products, medical devices, energy-efficient lighting solutions, and many more.
Servotech Power Systems has the installed capacity to manufacture ~60,000 AC EV Chargers and 12,000 DC EV chargers per year. It has a Strong supply chain network with a presence in over 600+ cities across 21+ Indian States.
Its Marquee clientele consists of Tata Motors, Morris Garages, Tata Power, BPCL, IOCL, HPCL, Nayara Energy, NCC, Adani E-Mobility, Techbec, and many others
Through its Subsidiaries, it acts as a CPO and installs EV Charging Stations across India, it is specialized in manufacturing essential components like Power Modules, CCS 2 Guns, Type 2 Guns, Connectors, Control Cards, PLC Modules, manufacturing of oxygen concentrators, and UVC’s and sports management, events and promotion.
Revenue Breakdown
As of Q1FY25, it generated 61.26 percent of its revenue from EV Chargers-DC, EV Charger AC 23.91 percent, Solar Products 9.52 percent, spares 3.82 percent, Installation services 1.46 percent, and Medical Devices 0.03 percent.
It generates revenue from the sale of AC & DC EV charging units. Additionally, it also generates revenue from the sale of Solar products (solar inverters, solar batteries, solar panels, etc.), LEDs, Medical Devices (Oxygen Concentrator & UVC), inverters, and batteries. Further, it generates revenue from providing maintenance services.
Q1FY25 Financials and Ratios
Its Revenue from operations grew by 41 percent YoY from Rs. 79.56 Crores in Q1FY24 to Rs. 112.19 Crores in Q1FY25 and it declined by 18 percent QoQ from Rs. 136.17 Crores in Q4FY24 to Rs. 112.19 Crores in Q1FY25.
Its Net Profit grew by 9.26 percent YoY from Rs. 4.1 Crores in Q1FY24 to Rs. 4.48 Crores in Q1FY25 and grew by 30 percent QoQ from Rs. 3.45 Crores in Q4FY24 to Rs. 4.48 Crores in Q1FY25. Its Net Profit Margin decreased from 5.14 percent in Q1FY24 to 3.99 percent in Q1FY25.
In terms of return ratios, it has reported a return on equity (ROE) of 10.8 percent and a return on capital employed (ROCE) of 11.3 percent. In terms of liquidity ratio it has reported a debt-to-equity ratio of 0.63.
Written by: Bharath K.S
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