Shares of Servotech Power Systems Limited, which operates in the electric vehicle (EV) chargers and solar systems sector, have been on a remarkable upward trend, experiencing an upper circuit for the second consecutive day. The stock price has surged to ₹185 per share.
Strong Q2FY25 Results Fuel the Surge
The incredible jump in Servotech’s stock is attributed to its impressive performance in the second quarter of FY25. The company reported a staggering 260% year-on-year increase in profit, which is excellent news for investors. Its revenue also saw a remarkable 133% rise, growing from ₹85.92 crore in Q2FY24 to ₹199.66 crore in Q2FY25. Furthermore, the company’s net profit margin improved from 3.60% in Q2FY24 to 5.61% in Q2FY25.
With the upper circuit limit being hit again, the company’s market capitalization has reached ₹4,132 crore. Analyzing the shareholding pattern reveals that promoters hold 59.34%, while foreign investors possess 5.95% of the company’s shares.
Impressive Client Portfolio
Servotech Power Systems boasts an impressive client portfolio, featuring major names such as Tata Motors, Morris Garages, Tata Power, BPCL, IOCL, HPCL, and Adani E-Mobility. This robust client base not only reflects the company’s strong market position but also its credibility in the EV and solar sectors.
CEO’s Insights on Q2 Performance
Raman Bhatia, the Founder and Managing Director of Servotech Power Systems, expressed satisfaction with the results for the September quarter. He attributed the outstanding performance to several strategic initiatives, highlighting the importance of a strong order book. Timely payments, deliveries, and excellent execution have contributed significantly to the company’s success this quarter.
Disclaimer: This information is for informational purposes only and should not be considered as investment advice. It is recommended to consult a financial advisor before making any investment decisions.
