Shares of this Multibagger small-cap stock present in the ‘Green Energy’ sector are locked in the 5 percent upper circuit after it released financial results for Q1FY23-24. The company has a market capitalization of Rs 1,825 crores.
The stocks of Servotech Power Systems Limited opened at Rs 171.65 apiece and are locked in the 5 percent upper circuit since then at the same price. The scrip inches closer to its 52-week high price which was recorded at a price of Rs 200.
Keeping a time horizon of one year, the scrip has proven to deliver multibagger returns of 1,362 percent. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 14.62 Lakhs within the above-mentioned period.
The stock price movements today are observed after the company, through a regulatory filing with the NSE, announced the financial results for the quarter ending June 2023, i.e., Q1FY23-24.
Comparing Q1FY22-23 with Q1FY23-24, the basic indicators responsible for the smooth flow of business such as the operating revenues and after-tax profits showed an increase in numbers. The operating revenues increased from Rs 32 crores to Rs 80 crores exhibiting an increase of 150 percent, and, the after-tax profits took a shift upwards from Rs 36 Lakhs to Rs 4.12 crores indicating an increase of around 1,050 percent.
The profitability metrics such as the return on equity (RoE), as well as the return on capital employed (RoCE), have been on the rise with the former moving up from 8.41 percent during FY21-22 to 13.43 percent in FY22-23, and, the latter, during the same time period, taking a shift from 14.04 percent to 18.35 percent.
According to the latest shareholding data available for the June 2023 quarter, the Promoters hold a 60.6 percent stake (11.34 percent of the stake as pledged), and the Foreign Institutional Investors (FIIs) hold a 9.42 percent stake in the company.
Servotech Power Systems Limited is involved in the process of manufacturing, trading, and exporting UPS, LED, Flameproof LED Lights & Solar Products. The product portfolio of the company includes LED tube lights and bulbs, floodlights, hoarding lights, solar rooftops, and many more. A majority of the company’s revenue comes from domestic sales within India.
Written by Amit Madnani
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