Servotech Power Systems’ Share Price Up By 5% Upper Circuit On Increasing EV Charging Slot

Shares of Servotech Power Systems touched a 5% upper circuit rising from Rs 183.57 to Rs 192.73. The last high price levels for the company were achieved within the last 52-week period and those stand at Rs 205.40 and till today the company has a market cap of Rs 4296 crore. In the last three years, Servotech has provided mind-blowing multibagger returns amounting to 7640%, climbing from Rs 2.49 per share to the present. Besides, the same scrip also witnessed a gain of 177.3% from its low of Rs 69.50 over the last one year.

The company's management in the last week disclosed their plan to uplift the authorized share capital to Rs 50 crore. In relation to this, Servotech shall allot 58,50,000 warrants which are proposed to be swapped into equity shares of the company for Ms. Sarika Bhatia, one of the Promoters of the company. The issuance is subject to the approval of the shareholders through a postal ballot. After the conversion of all the warrants, Ms. Bhatia's shareholding percentage in the company will be expected to increase from 13.50% to 15.52% which will now make her more or less entrenched in the company.

Alongside its capital restructuring efforts, Servotech has further diversified its business portfolio by winning its additional contract for the electric vehicle (EV) infrastructure development. The company has secured the it for construction of 11 nos of DC Fast EV charging stations in the state of Karnataka. These electric vehicle charging stations will be installed at the Regional Transport Office (RTO) and associated locations which are a significant gap for the electric vehicle charging facilities in the market of the state. Servotech will be responsible for the full management of work - design, manufacturing, installation and maintenance of equipment, strengthening its position and qualifications as an expert in EV charging.

Servotech has continued to show a good performance in terms of financials, particularly in Q1 FY 2024-25. The net profit after tax of the company grew to Rs 4.48 Crores from Rs 4.10 Crores in the corresponding quarter of last year. In the Q1 FY25, the total revenue improved by 41% to come at Rs 112.43 Crores as compared to Rs 79.81 Crores during Q1 FY24. EBITDA also registered a very good growth of 20% from Rs 7.13 crore in Q1 FY24, which stands at Rs 8.54 crore in Q1 FY25.

Servotech has been in the electronics industry for over two decades and that is why Servotech is a reputed name for the people of India, especially for the AC and DC EV charging solutions. Their chargers go beyond commercial and domestic requirements in that they are suitable for most electric vehicles that are available in the market. Engineers from the Company are expected to be in the forefront of the e-vehicles charging infrastructure as the Company has proven its quality in engineering.