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 jumped upto 4 percent upon receiving work order worth Rs. 30.2 Crores from UREDA to set up rooftop solar power plant.
Price Action
With a market capitalization of Rs. 4,064 Crores, the shares of Servotech Power Systems Limited were trading at Rs. 182.34 per equity share, up 3.2 percent from its previous day’s close price of Rs. 176.57.
What Happened
Servotech Power Systems Limited engaged in providing end-to-end solutions for the manufacturing, procurement, and distribution of advanced EV Chargers, solar systems and many more has secured a new work order from Uttarakhand New and Renewable Energy Development Agency (UREDA).
The said work order involves designing, supplying, installing, net metering, testing, and commissioning of 5.6 MW On‐grid rooftop solar power plant for a consideration of Rs. 30.2 Crores.
It also involves delivering comprehensive warranty maintenance for the next 5 years, tending to 1 kW‐1500 kW on‐grid rooftop solar installations done at various strategic locations which include government offices, colleges, buildings, hospitals institutions, etc. across the state.
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 Limited 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.
Servotech Power Systems Limited has a strong customer base with Marquee clientele consisting of Tata Motors, Morris Garages, Tata Power, BPCL, IOCL, HPCL, Nayara Energy, NCC, Adani E-Mobility, Techbec, and many others.
Revenue Breakdown
As of Q2FY25, it generated 41.06 percent of its revenue from EV Chargers-DC, EV Charger AC 21.12 percent, Solar Products 15.48 percent, EV OEM Sales 21 percent, and LED/Solar/Power and I&C 1.34 percent.
Financials and Ratios
Its revenue from operations grew by 132 percent from Rs. 86 Crores in Q2FY24 to Rs. 200 Crores in Q2FY25, accompanied by profits of Rs. 3 Crores to Rs. 11 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 11.55 percent and a return on capital employed (ROCE) of 13.07 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.42.
Written by: Bharath K.S
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