Multibagger EV-penny stock hit back-to-back upper circuits after promoter bought 5,00,000 shares and FIIs bought 80,00,000 shares via preferential issue!

From Rs 2.08 to Rs 87.95 per share, the stock delivered multibagger returns of 4,128 per cent in 3 years.

In the buoyant Indian stock market scenario, the NSE Nifty-50 Index showed a positive trend, recording a 0.34 per cent increase to reach 21,619. Among the 2,643 stocks traded on the NSE, 1,353 marked advances, 1,207 experienced declines, and 83 remained unchanged.

Amidst this favourable market backdrop, a notable electric vehicle (EV) stock demonstrated a noteworthy performance, surging by 5 per cent to hit the upper circuit at Rs 87.95 per share from its previous closing of Rs 83.8.

Despite a 12.05 per cent dip from its 52-week high of Rs 100 per share, the stock has delivered remarkable multibagger returns, showcasing a remarkable 459 per cent increase from its 52-week low of Rs 15.83 per share.

The stock name is SERVOTECH POWER SYSTEMS LTD.

Founded in 1998, Servotech Power Systems manufactures LED lighting solutions, UPS systems, inverters, and batteries, boasting a market cap surpassing Rs 1,870 crore. The company's shares showcase a robust financial performance with a 17 per cent Return on Equity (ROE) and an 18 per cent Return on Capital Employed (ROCE).

In a recent development, the promoter, Raman Bhatia, along with Foreign Institutional Investors (FIIs) such as Eminence Global fund PCC- EUBILIA Capital Partners Fund, AG Dynamic Funds Limited, Minerva Ventures Fund, Forbes EMF, and Coeus Global Opportunities Fund as well as non-promoters including Rakhee Mahesh Vaze, Nikhil Batra, and Aparna Jain, collectively acquired 89,00,000 shares through a preferential issue.

Raman Bhatia secured 5,00,000 warrants, FIIs were granted 80,00,000 warrants, and the remaining 4,00,000 warrants were allotted to non-promoters, highlighting a strategic move to enhance ownership and participation in the company.

Servotech Powers up EV Charging (Recent updates):

1. Patent Breakthrough: Servotech's revolutionary patents allow fast charging of GB/T vehicles using widely available CCS2 chargers via a small adapter. This slashes infrastructure costs, boosts compatibility, and benefits fleets, manufacturers, and EV owners across regions.

2. Innovation Beyond Chargers: Servotech is committed to sustainable energy. Earlier patents optimized grid services and maximized renewable energy integration. These cutting-edge technologies have broad applications in solar and EV charging.

3. BPCL Partnership Fuels Expansion: Servotech's manufacturing prowess landed a massive order of 2,649 AC EV chargers for BPCL's national network. This deployment across major cities will significantly accelerate India's EV charging infrastructure.

The company's financial performance has shown significant growth in both the second quarter (Q2FY24) and the first half (H1FY24) of the current fiscal year. Revenue from operations has increased by 114 per cent to Rs 85.93 crore in Q2FY24 compared to Q2FY23, and by 133 per cent to Rs 165.5 crore in H1FY24 compared to H1FY23. EBITDA has also grown by 148 per cent to Rs 5.97 crore in Q2FY24 compared to Q2FY23, and by 246 per cent to Rs 13.1 crore in H1FY24 compared to H1FY23. PAT has also increased by 301 per cent to Rs 3.12 crore in Q2FY24 compared to Q2FY23, and by 538 per cent to Rs 7.23 crore in H1FY24 compared to H1FY23.

From Rs 2.08 to Rs 87.95 per share, the stock delivered multibagger returns of 4,128 per cent in 3 years. Investors should keep an eye on this multibagger EV-stock.

Disclaimer: The article is for informational purposes only and not investment advice.