Servotech Power Systems Hits 10% Upper Circuit Amid New Contract And Government's PM E-Drive Scheme

Today, shares of Servotech Power Systems Ltd hit their 10% upper circuit, soaring to an all-time high of Rs 173 per share from the previous closing of Rs 157.28. This sharp rise highlights the company's impressive performance, marking a market capitalization of Rs 3,856 crore. Over the last three years, Servotech's stock has delivered multibagger returns of over 6,300%, skyrocketing from Rs 2.70 to its current levels, demonstrating its growing prominence in the renewable energy and electric vehicle (EV) sectors.

The growth of Servotech Power Systems Ltd coincides with the Indian government's push for electric mobility through the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) Scheme. This government initiative aims to accelerate the adoption of electric vehicles (EVs) in India by providing substantial subsidies and incentives totaling Rs 3,679 crore. The scheme covers a wide range of electric vehicles, including electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), ambulances, trucks, and emerging EV technologies. A further Rs 4,391 crore has been allocated to support the deployment of 14,028 electric buses across state transport undertakings (STUs) and public transport agencies.

Raman Bhatia, Founder and Managing Director of Servotech Power Systems Ltd, emphasized the significance of the PM E-Drive Scheme in shaping India's electric vehicle landscape. "The scheme aligns perfectly with the government's vision for mass mobility through public transportation. By incentivizing EV adoption and developing crucial EV charging infrastructure, it creates immense opportunities for the industry," Bhatia stated.

Moreover, Rs 500 crore has been earmarked specifically to incentivize the adoption of electric trucks and ambulances, further broadening the scope of India's e-mobility ecosystem. An additional Rs 2,000 crore will support the establishment of 88,500 charging stations nationwide, enhancing the infrastructure needed to meet the rising demand for electric vehicles. This includes 22,100 fast chargers for electric four-wheelers (e-4Ws), 1,800 fast chargers for e-buses, and 48,400 fast chargers for e-2Ws and e-3Ws.

Bhatia added, "As a leading player in the EV charging industry, Servotech is fully prepared to enhance its efforts and help establish a robust EV charging network across the country."

Servotech has been at the forefront of manufacturing high-quality EV chargers and views the scheme as a launchpad to expand its role in building India's EV charging infrastructure. The company has continuously contributed to the development of the nation's EV ecosystem, aiming to support the government's green energy goals.

Servotech Power Systems Ltd, India's largest EV charger manufacturer, has a rich history spanning over 20 years in electronics, with a strong focus on innovation and technology. The company designs and manufactures both AC and DC charging solutions for electric vehicles, catering to both commercial and domestic needs. With nationwide reach and engineering expertise, Servotech is poised to play a key role in developing India's EV charging infrastructure, helping shape the future of electric mobility in the country.