5,000-EV charging stations nationwide: This micro-cap EV company announces the establishment of a new subsidiary to foray into the EV charge point operator business!

The stock delivered multibagger returns of 385 per cent increase in 1 year and a staggering 3,300 per cent increase in 3 years.

Servotech Power Systems Ltd, India's leading EV charger manufacturer, has created a new subsidiary called Servotech EV Infra Pvt Ltd. This new company will operate as a CPO (Charge Point Operator), which means that it will manage and operate EV charging stations. Servotech Power Systems will manufacture and supply EV chargers to Servotech EV Infra Pvt Ltd, which will then operate them. This will allow Servotech Power Systems to focus on manufacturing and Servotech EV Infra to focus on operating charging stations.

The EV charging market is expected to grow rapidly in the coming years as the government is targeting 30 per cent of all vehicles to be electric by 2030 and Servotech EV Infra is well positioned to capitalize on this growth, with its strong track record and expertise in EV charging technology. The company aims to establish 5,000 EV charging stations across India in the upcoming years, which will result in the creation of a robust EV charging infrastructure, ultimately leading to the development of sustainable transportation.

Additionally, the company issued and allotted warrants subject to the approval of its members through a special resolution passed by postal ballot. A total of 9 promoters and non-promoters have already been allotted equity shares at Rs 82 per share in a preferential issue, raising an aggregate consideration of Rs. 73,80,00,000. Promoter of the Company, 5,00,000 shares aggregating to Rs 41,00,00,000.

The company reported strong financial results for the quarter and half-year ended September 30, 2023. Revenue from operations increased by 114 per cent and 133 per cent year-over-year in Q2FY24 and H1FY24, respectively. EBITDA grew by 148 per cent and 246 per cent year-over-year in Q2FY24 and H1FY24, respectively. PAT increased by 301 per cent and 538 per cent year-over-year in Q2FY24 and H1FY24, respectively. These results reflect the company's strong performance across all segments and its ability to capitalize on the growing demand for its products and services.

Earlier, Servotech Power Systems filed two patents for innovative energy management technologies. The first patent, "System and Method for Controlling Load Shifting by Third Party," allows third-party entities to control load shifting in a Battery Energy Storage System (BESS). This technology optimizes the use of BESS assets to provide grid services. The second patent, "System and Method for Effective Energy Channelization from a Renewable Energy Source," optimizes the use of renewable energy by ensuring that it is stored in the BESS when it is most valuable. Both of these technologies have broad applicability, including solar and electric vehicle charging systems.

Today, shares of Servotech Power Systems plunged 1.35 per cent to Rs 76.50 per share with an intraday high of Rs 79.50 and an intraday low of Rs 74.8. The company has a market cap of over Rs 1,600 crore.  

The stock delivered multibagger returns of 385 per cent increase in 1 year and a staggering 3,300 per cent increase in 3 years. Investors should keep an eye on this multibagger micro-cap stock.

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