Servotech Power shares hit upper circuit after co records manifold jump in Q1 profit

Shares of Servotech Power Systems hit upper circuit on Monday after the company announced a strong performance in the quarter ended on June 30, 2023. The company reported a manifold rise in the net profit in the first quarter of the ongoing financial year, while its revenue more than doubled.

Servotech Power Systems clocked a 1,050 per cent rise in the consolidated net profit on a year-on-year (YoY) basis at 4.11 crore in June 2023 quarter, as against a bottom line of Rs 0.36 crore in the same quarter a year ago. Its revenue from operating increased 148 per cent to Rs 79.57 crore in Q1FY24, which was Rs 32.04 crore a year ago.

Following the announcement of results, shares of Servotech Power System surged 5 per cent, hitting its daily circuit limit, to Rs 171.65 on Monday, with a total market capitalization of more than Rs 1,825 crore. The NSE-listed scrip had settled at 163.50 on Friday.

The company board has fixed July 28, 2023, Friday as the record day for the sub-division of its equity shares, the company said in an exchange filing. The company will split its equity shares in 1:2 ratio, which means that shares with face value of Rs 2 each will be split into two shares with a face value of Re 1 each.

NSE-listed Servotech had announced a sub-division (split) of its equity shares in May 2023 to enhance the liquidity of the company’s equity shares and to encourage wider participation in the stock market, the company said through a separate exchange filing earlier.

Shares of Servotech Power Systems have delivered multibaggers to the investors. The stock has zoomed more than 1,400 per cent from its 52-week low at Rs 11.40. The scrip had gained more than 430 per cent in the year 2023 so far, while it has soared 325 per cent in the last six months.

Prior to this announcement, the company had split its equity shares in 1:5 ratio in February this year. Then, the shares with the face value of Rs 10 each were divided into five equity shares with a face value of Rs 2 each. This is the second split announced by the company in 2023.

New Delhi-based Servotech Power Systems is a leading manufacturer and distributor of EV charging solutions, solar products and medical devices in the country. It also manufactures and distributes EV charging solutions, solar products and medical devices.