Since the Covid-19 pandemic, a wide range of stocks listed in India have given tremendous returns to its stakeholders paving the way for them to increase their wealth base.
Listed below is one such stock under the ‘small-cap’ category that has delivered a whopping return of 3,500 percent to its shareholders within three years:
Servotech Power Systems Limited
With a market capitalization of Rs 1,644.88 crores, the stocks of Servotech Power Systems Limited closed at Rs 77.35 in Friday’s trading session, a flat movement as compared to the previous close of Rs 77.40 apiece. The company’s stock hit its 52-week high price at Rs 100.
As per the NSE data, the company’s stock has delivered a huge return of approximately 3,500 percent within a span of just three years. The stock price shifted from Rs 2.10 in December 2020 to the current stock price level prevailing in the market.
The same means that if someone had invested Rs 10,000 in the stock three years ago, it would have converted to Rs 3.60 lakhs.
Digging into the financials of the company, the prime business indicators such as operating revenues and after-tax profits showed positive movements with the former recently moving from Rs 143.67 crores during FY21-22 to Rs 278.48 crores during FY22-23, and, the latter, keeping the timeframe the same, moved up from Rs 4.06 crores to Rs 11.07 crores.
As a result of the same, the basic profitability metrics saw a jump in numbers with the return on equity (RoE) increasing from 9.47 percent during FY21-22 to 17.37 during FY22-23. Moreover, the return on capital employed (RoCE) shifted from 12.37 percent to 17.72 percent during the same time horizon.
The latest shareholding data, as per the September 2023 quarter, represents the company’s Promoters holding a 60.6 percent stake, and the Foreign Institutional Investors (FIIs), recently reducing stake, currently holds an 8.86 percent stake in the company.
Servotech Power Systems Limited is a company based in India that is engaged in the business of manufacturing, trading, and exporting UPS, LED, solar products, etc. The company engages in the production, development, and marketing of indoor as well as outdoor LED lighting products, ultraviolet C products, and many more.
Written by Amit Madnani
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