EV Stock Reaches 5% Upper Circuit, Gains 145.97% From 52W Low; Stock Name?

The shares of Servotech Power Systems rose to a 5% upper circuit limit at Rs 179.56 on Tuesday after opening higher on the NSE at Rs 171.85. The company's market capitalisation has surpassed Rs 4,003 Cr following multibagger gains in 2024, with the stock rising 131.69% year-to-date. The stock reached a 52-week-high of Rs 205.40 on (26-Sep-2024) and a 52-week-low of Rs 73 on (21-Dec-2023) which indicates that the EV stock has gained 145.97% from 52W Low. Since increasing its market presence and meeting consumer demand, the stock has been rising so far this year, with Foreign Institutional Investors (FIIs) raising their stake from 5.53 in Q1 FY25 to 5.95 in Q2, which is a positive development. The company has demonstrated growth in its business as there has been an increase in FII investment.

There is indeed a positive sentiment towards the stock in the market segment. Also, it has strong potential for future growth. Servotech Power Systems was a bit slow to expand its presence during the first six months of the financial year but increased its focus in the renewable energy sector simultaneously with the rise in new orders. The firm's total revenue increased 131% as compared to the previous year to Rs 20,006.93 lakhs in Q2 FY25 compared to Rs 8659.09 lakhs posted during the quarter of last year. Due to the mix of seasonality and operational efficiencies, EBITDA increased significantly to Rs 1,929.33 lakhs (up 223 per cent) from Rs 597 million in Q2 FY24, while gross profit rose by 167 per cent up to Rs 3,507.77.

In the second quarter of FY24, the return before tax (PBT) increased from Rs 312.40 lakhs to Rs 1,533.03 lakhs which indicates an increase of 268%. The return after tax (PAT) also portrays an increase of 260% when compared to the last quarter. PAT reached Rs 1, 124.21 from Rs 312.40 in the corresponding quarter a year ago.

Commenting on these results, Raman Bhatia, Founder & Managing Director of Servotech Power Systems Ltd, stated, "Our remarkable Q2 performance is the outcome of diligent strategic planning and reliable implementation. Customer satisfaction which is gained by filling orders quickly and collecting payment, has stoked our fire this quarter. Trust of our clients in US is reaffirmed as we are becoming stronger and stronger in executing order on time."

In further boosting its market presence, Servotech has recently launched another series of the latest advanced solar on-grid and hybrid inverters, micro-inverters, battery storage systems and solar pump controllers. These products also fit into the government's initiatives like the PM Surya Ghar Muft Bijli Yojana and PM-KUSUM scheme aimed at facilitating rooftop solar installations for Indian households and businesses and empowering farmers to use renewable energy for farming. The latest product portfolio of Servotech is aimed at addressing the increasing demand for clean, dependable, and reasonably priced energy solutions in India.

Servotech over two decades of being in the electronics industry has become an active player in providing tech-based EV charging solutions for residential and commercial clients.

The company provides a wide range of AC and DC chargers, which suit various EV models and cater to the changing landscape of e-mobility in India. With a full complement of engineering, Servotech Power Systems is set to play a key role in the development of EV infrastructure in India.

The company operates across India and is listed on the National Stock Exchange, embracing its strengths and opportunities to promote clean energy solutions in India's fast-developing energy environment.