Foreign Portfolio Investments (FPIs) bought 80,00,000 shares of this multibagger penny stock: Company bags new EV chargers order from BPCL; do you own it?

The stock delivered multibagger returns, with 400 per cent increase in 1 year, and a whopping 3,600 per cent increase in 3 years.

Indian stock markets started the day on a higher note Today, November 29, 2023. The BSE Sensex Index rose 0.55 per cent to 66,539, while the NSE Nifty-50 Index gained 0.57 per cent to 20,004. The stock market continued its upward trajectory for the second consecutive day, with Adani Group stocks remaining at the forefront of the rally.

Along with the market in green, this multibagger stock was shining and gained 1.95 per cent to Rs 78.45 per share from its previous closing of Rs 76.95. The stock’s 52-week high is Rs 100 and its 52-week low is Rs 13.01.

The stock name is SERVOTECH POWER SYSTEMS LIMITED.

The sudden rise in the stock price is due to Foreign Portfolio Investments (FPIs) have been allotted 80,00,000 shares via preferential issue of shares at Rs 83.40 per share aggregating to Rs 66,72,00,000 or Rs 66.72 crore. The total preferential issue size is Rs 75.06 crore

Coeus Global Opportunities Fund bought 20,00,000; Eminence Global Fund PCCEUBILIA Capital Partners Fund bought 15,00,000; AG Dynamics Fund Limited bought 15,00,000; Minerva Ventures Fund bought 15,00,000 and Forbes EMF bought 15,00,000. In addition to FIIs, five individual investors purchased the remaining portion of the allotment, valued at Rs 8.34 crore.

Earlier, the company bagged 2,649 AC EV charger orders from Bharat Petroleum Corporation Limited (BPCL). The company will be responsible for manufacturing, supplying and installing 2649 AC EV Chargers strategically across the nation, equipping petrol pumps in major Indian cities under the BPCL E-drive Project, playing a key role in the widespread implementation of EV charging solutions. The range of EV chargers includes 3 kW and 7 kW for this project. The manufacturing and production of these AC chargers has already begun and the supply of the chargers will begin from December 15, 2023 and will be completed within three months.

Servotech Power Systems, incorporated in 1998, is engaged in manufacturing LED lighting solutions, UPS (uninterruptible power supply) systems, inverters, and batteries. The company has a market cap of over Rs 1,600 crore. The shares of the company have an ROE of 16.8 and an ROCE of 17.7 per cent.

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. This strong financial performance is a testament to the company's execution of its growth strategy.

The stock delivered multibagger returns, with 400 per cent increase in 1 year, and a whopping 3,600 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.