Shares of Servotech Power Systems are on a roll. The company’s shares gained 4.98% to hit the upper circuit on Tuesday. They were locked at ₹ 191.70 apiece, which is their new all-time high.
Servotech Power Systems is engaged in the end-to-end manufacturing, procurement and distribution of EV charging solutions, solar products, energy-efficient lighting solutions and medical devices.
The company’s share price increased by 105% in the past month to give multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a month ago, the value of their holdings would have been ₹ 2.05 lakhs today.
In fact, it has delivered multibagger returns of 532% in the past six months and a whopping 1405% in the past year. Therefore, an investment of ₹ 1 lakh in the company’s shares a year ago, would fetch ₹ 15.05 lakhs today, and if the same amount was invested merely six months ago, it would have been worth ₹ 6.32 lakhs today!
The company’s shares have been deep in the green, especially after it initiated manufacturing of smart-tech-driven innovative EV chargers for installation at various EV Charging stations across the country. It said that this strategic foray is in line with the Company’s vision of developing solutions following the Government’s Make in India initiative and steering the nation towards a greener and more sustainable future.
Servotech Power Systems reported a multi-fold increase in consolidated net profit for the January to March quarter at ₹ 6.05 crores, against ₹ 1.3 crores recorded in the same quarter a year ago. Its revenue climbed to ₹ 120 crores in the latest quarter, against ₹ 51.10 crores recorded in the corresponding quarter last year.
Moreover, the board has announced the sub-division or split of the company’s shares having a face value of ₹ 2 each into two equity shares having a face value of ₹ 1 fully paid up, or in the ratio of 1:2. The rationale behind the stock split is to enhance the liquidity of the shares and to encourage wider participation in the market.
Servotech Power Systems is a small-cap stock with a market capitalization of ₹ 1942 crores. It has an ideal return on equity of 17.19% and an ideal debt-to-equity ratio of 0.51. Its promoters hold a 60.60% stake in it followed by retail investors with 30.00%, and foreign institutions with 9.40%.
Written By Simran Bafna
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