Servotech Power Systems stock zooms 5% after bagging order for EV chargers from BPCL
Servotech Power Systems shares jump 5% after bagging order for EV chargers from Bharat Petroleum Corporation Limited (BPCL).
Servotech Power Systems saw its shares jump 5% to ₹79.10 apiece in Thursday's early trade. This positive uptick in shares came after the company received an order for EV chargers.
In an exchange filing on Wednesday, the company announced that it has bagged 2,649 AC EV charger orders from Bharat Petroleum Corporation Limited (BPCL). The company said it will be responsible for manufacturing, supplying, and installing 2,649 AC EV chargers strategically across the nation, equipping petrol pumps in major Indian cities under the BPCL E-Drive project.
The range of EV chargers includes 3 kW and 7 kW for this project. The company stated that the manufacturing and production of these AC chargers have already begun, and the supply of the chargers will begin on December 15th and will be completed within three months.
Servotech Power Systems and BPCL had previously worked together to transform the E-Mobility landscape. The company also supplied and installed 800 units of 30 KW DC fast EV chargers at different locations across the country for BPCL’s E-Drive project.
Commenting on the development, Sarika Bhatia, Director of Servotech Power Systems, said, "We are honoured to lead India's E-Mobility revolution in partnership with BPCL, collaborating closely to establish an energy corridor enabling on-the-move charging for electric vehicles across India."
“The company's state-of-the-art AC EV chargers will contribute to the realization of India's ambitious goals in the E-Mobility sector. Implementing these chargers will not only enhance the convenience of EV charging but will also contribute significantly to reducing the carbon footprint associated with transportation.”
"As India continues to embrace electric mobility, Servotech stands committed to driving innovation in EV charging technology, supporting the nation's transition towards a cleaner and more sustainable transportation ecosystem. This step will undoubtedly be a significant milestone, paving the way for a robust and expansive charging network essential for the future of high-capacity EV charging," Bhatia added.
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Servotech Power Systems is a small-cap stock with a market capitalisation of ₹1,658 crore. It is engaged in the end-to-end manufacturing, procurement, and distribution of a range of high-end yet advanced solar products, medical devices, and energy-efficient lighting solutions.
Multi-bagger returns
The shares, which were trading at a mere ₹2.90 apiece two years ago, have seen a meteoric rise of 2,589% to date. If an investor invested ₹1 lakh in the shares at that time and remained invested until the present day, the wealth would have grown to a staggering ₹27 lakh.
In every year since CY20, the stock has delivered a multi-bagger return. In CY20, CY21, and CY22, the stock generated returns of 194%, 247%, and 110.24%, respectively. In the current year so far, the stock is up by 390%, jumping in value from ₹16.20 apiece to ₹78. On June 21, the stock spiked over 4.30% to hit a new all-time high of ₹100 apiece.
The company's shares have been trading on an ex-split basis with a 1:2 ratio since July 28, 2023.
At 11:00 AM, the stock was trading with a gain of 3.51% at ₹78 apiece.
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