Green energy stock hits 5% upper circuit after receiving ₹31 Cr order from Uttar Pradesh Govt.
Servotech Renewable Power System shares rose 5% to Rs. 169.4 on securing a Rs. 31 crore order from UPNEDA for 1,094 solar pumps under the KUSUM C-1 Scheme. The company’s revenue grew 132.6% YoY to Rs. 200 crore in Q2 FY25, with a net profit rise of 260%. Servotech targets hydrogen products and OEM market entry.
During Monday’s morning trading session, the shares of India’s leading solar solutions and EV Charger manufacturer hit a 5 percent upper circuit at Rs. 169.4 on NSE, after securing an order worth ~Rs. 31 crores from Uttar Pradesh New and Renewable Energy Development Authority (UPNEDA), Govt. of Uttar Pradesh.
With a market cap of Rs. 3,770 crores, at 02:14 p.m., the shares of Servotech Renewable Power System Limited were trading in the green at Rs. 169.1, up by around 4.8 percent, as against its previous closing price of Rs. 161.35.
What’s the News
According to the latest regulatory filings with the NSE, Servotech Renewable Power System Limited secured an order of ~1,100 grid-connected agriculture pumps from Uttar Pradesh New and Renewable Energy Development Authority (UPNEDA), Govt. of Uttar Pradesh.
Under the KUSUM Component C-1 Scheme, this project will be a huge step towards solarise farming of Uttar Pradesh and driving India closer to being a solar-powered nation.
The project, valued at around Rs. 31 crores, will involve manufacturing, supplying, installing, testing & commissioning of grid-connected agriculture pumps along with solar power plants.
Additionally, the project involves Servotech providing comprehensive warranty maintenance for the next 5 years for pumps ranging from 2 HP, 3 HP and 5 HP, paired with solar power plants of capacities of 3 kW, 4.5 kW, and 7.5 kW. This will cover a total of 1,094 solar pumps across Uttar Pradesh, contributing to the state’s renewable energy objectives.
Previous Orders
On 9th December, Servotech Power Systems entered into a strategic partnership with LESSzwei GmbH (LESS2), a globally acting German enterprise supporting the German Government in achieving its objectives in the field of sustainable development in the infrastructure sector.
The company entered into this partnership to develop and deploy
innovative 100% solar-powered EV charging infrastructure for micro-mobility, such as e-bikes, e-scooters, and e-cargo bikes in urban areas of Germany, and the project is named “EnerMAAS”.
Financials
Servotech Power Systems reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 132.6 percent, rising from Rs. 86 crores in Q2 FY24 to Rs. 200 crores in Q2 FY25.
Similarly, the company’s net profit increased from Rs. 3 crores to Rs. 11.2 crores over the same period, representing an impressive growth of around 260 percent YoY.
EBITDA for Q2 FY25 increased by 223 percent YoY to Rs. 19.3 crores, up from Rs. 6 crores in Q2 FY24, while the operating EBITDA margins grew to 10 percent, from 7 percent, over the same period.
Management Guidance
By FY27, Servotech Renewable Power System aims to achieve an annual production capacity of 12,000 units for chargers and launch solar products along with mobile applications to enhance the customer experience.
The company also plans to enter the Original Equipment Manufacturer (OEM) market, targeting a significant share of the Indian OEM charger segment.
Additionally, Servotech is strategizing to integrate advanced plans and technology for hydrogen-based products, with the goal of establishing a global footprint.
The company expects to commence full-scale production in the hydrogen technology domain, supported by plans of substantial investment.
Stock Performance
The stock has delivered multibagger returns of nearly 118.5 percent in one year, while around 91 percent of positive returns in the last six months. The share of Servotech Power Systems has given negative returns of about 6 percent in the last one month.
About the Company
Incorporated in 2004, Servotech Renewable Power System Limited, formerly known as Servotech Power Systems Limited, is primarily engaged in the business of manufacturing of LED lights, EV chargers and solar power products.
Servotech Renewable offers a wide range of solar energy solutions, including solar panels, inverters, and the groundbreaking Solar ServPort.
In 2017, the company went public by listing on the National Stock Exchange (NSE-SME Platform) under the symbol SERVOTECH. In 2022, it forayed into the electric vehicle (EV) market by commencing the production of EV chargers.
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Source : Trade Brains
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