Servotech Power Systems: A leading solar and EV charging solutions provider with strong growth prospects

Servotech Power Systems Ltd has established itself as a trailblazer in the Indian solar and electric vehicle (EV) industry, leveraging over 18 years of industry expertise to drive remarkable growth. Specializing in the engineering, procurement, construction, and commissioning of solar power projects, Servotech has played a pivotal role in India’s ongoing solar revolution.

Stellar Stock Performance:

1 Day 1 Week 1 Month 6 Months 1 Year 2 Years 3 Years 5 Years
1.82% 5.59% 0.19% 174.78% 543.09% 4018.11% 3465.91% 3203.16%

As of October 31, 2023, Servotech’s stock has shown phenomenal performance, rewarding investors with multibagger returns over 6-month period.

Notably, the stock provided a staggering 4018.11% return over a span of 2 years, reflecting the company’s remarkable growth trajectory in the eyes of investors.

Solar Power Solutions for a Sustainable Future:

Servotech has been a prominent player in the domestic solar industry, leaving an indelible mark through its installations of over 15 MW of solar power plants in various petroleum refineries. This initiative has contributed significantly to the reduction of the carbon footprint, aligning perfectly with the global drive for sustainability.

Moreover, Servotech’s expertise extends to residential solutions, with over 1,00,000 homes across different states benefiting from their solar home lighting systems. These systems represent cost-effective and eco-friendly alternatives, aligning with the global commitment to combat climate change.

Driving Growth with Electric Vehicle Charging Infrastructure:

In the rapidly evolving electric vehicle (EV) market, Servotech has demonstrated outstanding performance by securing a substantial market share in the EV charging sector. In the first half of FY24, the company supplied approximately 3,600 EV chargers across India, a testament to the surging demand for electric vehicles and the urgent need for enhanced EV infrastructure.

Strategic Partnerships and Expansion:

Servotech’s commitment to promoting sustainability is evident through strategic partnerships. One notable alliance is with EMCOR Power Solutions, focusing on the manufacture and installation of DC fast EV chargers. This collaboration is contributing significantly to the nationwide adoption of electric vehicles.

Furthermore, a partnership with the Uttar Pradesh government, involving an initial investment of approximately Rs 300 crore, aims to establish an indigenous manufacturing facility for EV chargers. This initiative not only fortifies Servotech’s presence but also enhances India’s EV ecosystem.

Financial Performance Highlights:

Servotech’s financial performance reflects its impressive growth trajectory. In Q2 FY24, the company reported stellar revenue growth of 115.2%, reaching Rs 86.59 crore, compared to Rs 40.24 crore in Q2 FY23. This surge in revenue can be attributed to robust demand for EV chargers and the increasing adoption of sustainable energy solutions.

The company’s EBITDA witnessed a remarkable surge, increasing by 148.2% to Rs 5.97 crore in Q2 FY24 from Rs 2.40 crore in Q2 FY23. This growth was fueled by a higher share of products with superior margins, resulting in a 91-basis-point expansion in margins.

Additionally, the profit after tax (PAT) for Q2 FY24 stood at Rs 3.12 crore, a substantial leap from Rs 78.04 lakh in Q2 FY23, with margins increasing to 3.60% from 1.94% in the corresponding period. Servotech’s financial prowess underscores its capacity to navigate the complex dynamics of the solar and EV industry while achieving remarkable profitability.

In conclusion, Servotech Power Systems Ltd is not merely a player in the Indian solar and electric vehicle industry; it is a frontrunner, driving innovation and sustainability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.