This EV Charger stock which deals in the business of development, production, and sale of solar products, and EV chargers, surged upto 5 percent after signing an agreement with Watt & Well for EV manufacturing in India.
Price Movement
In Thursday’s trading session, Servotech Renewable Power Systems Ltd‘s share price touched a day’s high of Rs. 126.97, which was up by 4.64 percent. The share price reiterated from the day’s high and was trading at Rs. 124.12, which is 2.30 percent higher than the previous closing price of Rs. 121.33. In the past year, the stock has delivered around 28 percent and has outperformed the Nifty Index.
What Happened?
The company’s stock was in focus after Servotech signed a strategic partnership with France-based Watt & Well SAS, a leader in power electronic equipment for the Aerospace, Oil & Gas, Renewables, and E-mobility sectors, to design, manufacture and sell EV chargers components in India.
The collaboration is focused on developing a 30kW Power Module for the Indian EV charging market. They will jointly assess the viability and process for the production of a Bidirectional Power Module for V2G applications. Under the agreement, Servotech will manufacture Power Modules in India while Watt & Well to provide full technical support. Further, Servotech will hold exclusive rights to market and sell these components in India.
Management Commentary
The Founder & MD of Servotech Renewable Power Systems, Raman Bhatia said “This collaboration will enable us to manufacture innovative and affordable EV Charging solutions at scale and offer our customers a comprehensive range of EV charging solutions. Also, this marks a decisive shift away from reliance on imports and positions India as a key player in the global EV charger supply chain.”
Further, the CEO of Watt & Well SAS, Benoit Schmitt said “We are delighted to join forces with Servotech to bring our power electronics expertise to the rapidly growing Indian EV market. We believe that this collaboration significantly boost India’s domestic production of EV charging solutions, driving faster electric vehicle adoption and supporting the India’s clean energy objectives.”
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 216.29 crore which increased by 315.84 percent year on year, from Rs. 52.01 crore in Q3FY24 and an 8.32 percent increase from Rs. 199.66 crore in Q2FY25.
Its net profit increased by 616.80 percent year on year, from Rs. 1.11 crores in Q3FY24 to a profit of Rs. 7.98 crores in Q3FY25. Quarterly, the profits were down by 29 percent from Rs. 11.24 crore.
Business Segments & Market Share
The company is in the Solar product segment which includes solar panels, inverters, and the Solar ServPort. Further, they are into EV Chargers offering AC and DC fast charging solutions.
The EV Chargers in the AC category are in the range of 3.3kW to 22kW and the DC Range is from 20kW to 360kW. The company holds around 35 to 40 percent market share in EV Chargers across India. Servotech has over Rs. 600 crore as its order book.
Key Clients
Servotech’s prominent clients include Bharat Petroleum Corporation, Indian Oil Corporation, Adani Gas, Tata Power, Morris Garages, Tata Motors, NCC, ITC Hotels, Hindustan Petroleum Corporation, and Others.
Expansion Plans
The company plans to build a 12,000-unit annual production capacity for chargers and to launch solar products and mobile apps for customers in 2025. Servotech plans to produce Power Module and Control Card, Enter OEM Business, and integrated plan and technology for Hydrogen products in 2026-2027.
About the company
Servotech Renewable Power focuses on providing sustainable energy solutions through renewable technologies like solar power and electric vehicle charging infrastructure. They aim to drive clean energy adoption.
Written by Santhosh S
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