Multibagger solar product and EV chargers manufacturing stock at Rs 79.40 – Board announces final dividend!

From Rs 1.72 to Rs 79.40 per share, the stock delivered multibagger returns of 4,500 per cent in 3 years.

At a meeting held on June 03, 2024, the Board of Directors of Servotech Power Systems Limited considered and approved several items. These included recommending a final dividend of 5 per cent per share for the financial year 2023-2024 (Re 0.05 per share), subject to shareholder approval. The board also approved the change in designation of Mr Rajesh Mohan Rai from Executive Director to Non-Executive Director, as he has taken on a new executive role within the company. Mr. Rai will remain associated with Servotech as a Non-Executive Director and the board acknowledged his contributions during his tenure as Executive Director.

Earlier, in a major push for electric vehicle adoption in India, EV charging station provider Incharz partnered with 3ECO, a manufacturer of electric cargo vehicles, to build a nationwide network of charging stations specifically designed for 3ECO's fleet. This collaboration aims to establish strategically located stations capable of servicing 200-300 electric cargo vehicles daily, with a target of charging 1,000 of 3ECO's vehicles by the end of 2024. Incharz will be responsible for designing, installing, operating, and maintaining these technologically advanced stations, which will support multiple charging standards for maximum compatibility. 3ECO will contribute by providing their fleet hubs as locations for the stations. This initiative is expected to significantly accelerate the adoption of electric vehicles in India, promote environmentally friendly transportation (green mobility), and contribute to a more sustainable future.

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About Servotech Power Systems Ltd

Servotech Power Systems, a trusted brand with a nationwide presence on the NSE, has over 20 years of experience in electronics. They leverage this expertise to design and manufacture cutting-edge AC and DC charging solutions for electric vehicles. Their chargers cater to both commercial and domestic applications, ensuring compatibility with a wide range of EVs. With its comprehensive engineering capabilities, Servotech is positioned to be a key player in building India's EV charging infrastructure. Backed by a history of innovation and advanced technology development, Servotech is committed to shaping the future of e-mobility in India.

Servotech Power Systems capped off a positive fiscal year with a solid performance in Q4FY24. Their net sales jumped significantly by 161.7 per cent compared to the previous quarter, reaching Rs 136.65 crore. This strong showing continues a trend of year-over-year growth, with a 13.9 per cent increase compared to Q4FY23. While net profit for Q4FY24 did see a decrease year-over-year, it's important to note the substantial growth of 210.8 per cent when compared to Q3FY24. This momentum points towards a company on an upward trajectory.

Looking at the full fiscal year (FY24), Servotech Power Systems continued to impress. Their net sales grew by a robust 27.49 per cent to Rs 355.26 crore, fuelled by the increasing demand for their innovative solutions in the solar and electric vehicle sectors. This focus on cutting-edge technology is paying off, as evidenced by the growth in profit after tax (PAT) by 6.69 per cent and a healthy 18.05 per cent increase in EBITDA. This financial strength is further bolstered by their expanding operations and the introduction of higher-value products.

The 52-week high of the stock is Rs 108.70 and the 52-week low of Rs 48.63 with a market cap of Rs 1,758 crore. From Rs 1.72 to Rs 79.40 per share, the stock delivered multibagger returns of 4,500 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.