The electric vehicle (EV) market in India is rapidly evolving, driven by increasing environmental awareness and supportive government policies aimed at achieving a significant penetration of EVs by 2030. The Indian EV market presents a promising investment opportunity, with various stocks showing significant growth potential.
Listed below is one such EV stock in which FIIs have increased their stake by 3.08 percent:
Servotech Power Systems Ltd
With a market capitalization of Rs. 2,719 crores, the shares of Servotech Power Systems started Wednesday’s trading session on a flatter note at Rs. 122 compared to its previous close of Rs. 120.31. During the trading session, the shares hit a high of Rs. 124, gaining around 1 percent and are currently trading at Rs. 121 apiece.
Looking at the company’s financial performance, the revenue decreased by around 18 percent from Rs. 136.17 crores during the March quarter to Rs. 112.19 crores in the June quarter. Contrastingly, the net profits increased by around 30 percent from Rs. 3.46 crores to Rs. 4.49 crores during the same timeframe.
Comparing the same metrics on a YoY basis, the revenue zoomed by around 41 percent from Rs. 79.57 crores during Q1FY24 to Rs. 112.19 crores in Q1FY25. In addition, the net profits jumped by around 10 percent from Rs. 4.10 crores to Rs. 4.49 crores during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.29 percent and a return on capital employed (RoCE) of 11.87 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 3.33 percent.
Earlier, the company received an additional order of approx. 400 units of DC Fast EV Chargers from Bharat Petroleum Corporation Limited (BPCL) and other EV charger OEMs.
The project valued at around Rs. 20 Crores will involve manufacturing, supplying, installing, and deploying these chargers nationwide, particularly at BPCL petrol pumps as part of the BPCL E-drive Project.
According to the latest shareholding pattern, Foreign Institutional Investors (FIIs) have raised their stake from 2.45 percent in Q4FY24 to 5.53 percent in Q1FY25, an increase of 3.08 percentage points. Meanwhile, Promoters own 59.70 percent of the shares, and Retail Investors hold the remaining 34.77 percent.
Moreover, Servotech is currently constructing a cutting-edge manufacturing facility focused on the production of essential EV charger components such as power modules, control circuits, and PLCs. This move aims to reduce reliance on imports and position India as a key player in the global EV charger supply chain.
The company aims to become one of the top 3 companies in the next 2 years and is focused on achieving strategic goals and demonstrating results to investors.
Furthermore, the company is targeting a revenue of around Rs. 3,500 crores in the next 4-5 years, planning to increase market share, expand product offerings, and expect a significant increase in revenue by 2024.
Headquartered in New Delhi, Servotech Power Systems Ltd was incorporated in 2004. The company is engaged in is engaged in manufacturing LED lighting solutions, UPS (uninterruptible power supply) systems, EV charges, inverters, and batteries.
Written By Vaibhav Patil
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