Servotech Power Systems shares soar 10% to all-time high on 1.2 MW solar energy order

Shares of Servotech Power Systems, a leading manufacturer of EV chargers in India, jumped 10.3% to hit a fresh all-time high of ₹132.34 apiece in today's session. This rise followed the company's announcement of securing an order for approximately 1.2 MW of solar storage and grid-connected systems.

In today's exchange filing, the company informed investors that it secured a total of 1.2 MW order worth approximately ₹10.20 crore for the deployment of solar energy storage and grid-connected systems. The order has been secured from the UPNEDA.

Servotech will be responsible for installing multiple 75-kW solar-based energy storage systems, designed to provide reliable and uninterrupted power supply across Uttar Pradesh. Additionally, the company will also be designing, manufacturing, supplying, erecting, testing, and commissioning 20 kW and 40 kW grid-connected solar power systems, contributing to the state’s renewable energy goals.

Meanwhile, the company reported a healthy set of numbers for the quarter ending in June, with revenue from operations improving by 41% to ₹112.19 crore, compared to ₹79.57 crore.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 20%, from ₹7.13 crore in Q1 FY24 to ₹8.54 crore in Q1 FY25. Gross profit saw a 29% rise, from ₹15.78 crore in Q1 FY24 to ₹20.38 crore in Q1 FY25. Net profit after tax (PAT) stood at ₹4.49 crore in Q1 FY25, compared to ₹4.11 crore in Q1 FY24, witnessing a growth of 9%.

Wealth creator

In every year since CY20, the stock has delivered a multibagger return. In CY20, CY21, and CY22, the stock generated returns of 194%, 247%, and 110.24%, respectively. In the recently concluded CY23, the stock achieved an impressive return of 382%.

So far in the current year, the stock is up by 72%, jumping in value from ₹79 to ₹131. Taking the stock's CY19 low price of ₹0.70 apiece, the stock has skyrocketed 18614% to date.

The company operates in multiple segments. It is primarily involved in the manufacturing and distribution of a diverse range of products, including solar products, LED lights, and electric vehicle (EV) chargers. It also engages in providing energy-efficient solutions and power backup systems, catering to various sectors such as residential, commercial, and industrial.

The company is well-positioned to capitalise on the EV sector's rapid growth, significantly boosting its revenue through the widespread adoption of EVs. It is expanding its product portfolio to meet rising demand.

Earlier in January, the company secured an order of 1800 DC Fast EV Chargers from Bharat Petroleum Corporation Limited (BPCL). The project, valued at ₹120 crore, will involve Servotech manufacturing, supplying, installing, and strategically deploying these 1800 EV chargers across the nation, particularly at BPCL petrol pumps in major cities, as part of the BPCL E-Drive Project.

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