This small-cap EV stock gains around 8 per cent after commissioning a manufacturing plant; do you, have it?

Aniket Gogate
/ Categories: Trending, Mindshare
This small-cap EV stock gains around 8 per cent after commissioning a manufacturing plant; do you, have it?

The stock has hit a fresh 52-week high today.

Savita Oil Technologies has successfully commissioned a new synthetic ester manufacturing plant in Mahad, India. This versatile facility is designed to produce synthetic esters for transformer fluid applications, as well as high-performance automotive and industrial lubricants. Synthetic esters are increasingly being used in a variety of applications, including electric vehicle coolants, battery immersion cooling fluids, and data center cooling fluids.

With the commissioning of this new plant, Savita Oil Technologies becomes the world's first company to manufacture and market all three classes of transformer fluids: mineral oil based, natural ester based, and synthetic ester based. The company also plans to launch a new range of EV coolants and immersion cooling fluids based on the esters produced at this facility.

This new plant is a significant investment for Savita Oil Technologies, and it reflects the company's commitment to developing and manufacturing innovative products that meet the evolving needs of its customers The plant is also expected to generate significant revenue for the company in the coming years.

Savita Oil Technologies is currently trading at Rs 359.65, marking a substantial uptick of 26.30 points or 7.89 per cent from its previous closing figure of Rs 333.35 on the BSE. The stock hit a 52-week high at Rs 365.20 today.

Savita Oil Technologies Limited is an Indian company that has been around for over 60 years. It started by trading thinners and solvents, but now it makes a wide range of petroleum products and polymers.

Savita Oil Technologies' Q1 FY24 financial performance indicates steady growth, with an overall revenue of Rs 937 crore, a 4 per cent YoY increase. The company reported EBITDA and PAT of Rs 136 crore and Rs 86 crore, respectively, reflecting growth of 15.1 per cent and 10 per cent YoY. EBITDA per KL/MT stood at Rs 6,724 for Q1 FY24.

In conclusion, Savita Oil Technologies' recent achievement in the synthetic ester domain, coupled with its rich history of innovation, positions the company as a trailblazer in the petroleum speciality industry. As the EV sector and the broader energy landscape evolve, Savita's dedication to cutting-edge solutions and sustainable practices paves the way for continued success and growth.

DSIJ’s 'Tiny Treasure' service recommends researched small-cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.

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

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