EV stock engaged in the business of providing end-to-end solutions for the manufacturing, procurement, and distribution of advanced EV Chargers, solar systems, and many more in focus upon receiving additional work orders to setup EV Charging Stations in Nashik.
Price Action
With a market capitalization of Rs. 3,798 Crores, the shares of Servotech Power Systems Limited hit a 5 lower circuit in the day’s trade at Rs. 170.43 per equity share, from its previous day’s close price of Rs. 179.40. Most of the shares traded in the Indian Market have corrected at an alarming rate due to the ongoing global tensions.
What Happened
Servotech Power Systems Limited had earlier received a work order from Nashik Municipal Corporation which involved supplying, commissioning, and constructing 20 electric vehicle (EV) charging stations throughout the Nashik Municipal Corporation area.
Following the timely execution and delivery of results by Servotech Power Systems Limited, it has received additional work orders from the same entity for supplying, commissioning, and constructing a total of 29 electric vehicle (EV) charging stations.
Also Read: Stock jumps 14% after company announces 72% YoY revenue growth in H1FY25
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, 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.
Financials and Ratios
Its revenue from operations grew by 43 percent from Rs. 68.14 Crores in Q1FY24 to Rs. 97.51 Crores in Q1FY25, accompanied by profits of Rs. 4.03 Crores to Rs. 4.74 Crores.
In terms of Return ratios, it has delivered a return on equity (ROE) of 12.7 percent and a return on capital employed (ROCE) of 12.3 percent. It has maintained a debt-to-equity ratio of 0.89.
Also Read: EV stock in focus after receiving order worth ₹150 Cr for 180 EVs from BillionE
Written by: Bharath K.S
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