Servotech shares: Multiabgger stock hits upper circuit after strong Q4 numbers

Shares of Servotech Power Systems hit an upper circuit of 5 per cent on Monday after the company reported a strong performance for the quarter ended on March 31, 2023. Servotech Power Systems reported a 365 per cent year-on-year (YoY) rise in the net profit at Rs 6.05 crore for the March 2023 quarter compared to a net profit at Rs 1.30 crore in the year ago period.  Net profit rose over 56 per cent on a sequential basis (QoQ) from Rs 3.87 crore in December 2022 quarter.

Servotech's revenue from operations surged over 125 per cent to Rs 115.30 crore in the fourth quarter of the previous fiscal from Rs 51.06 crore in the same quarter previous year. The company reported an operational revenue at Rs 83.27 crore in the preceding December quarter.

Shares of Servotech Power Systems surged 5 per cent, hitting their upper circuit limit, to Rs 58.20 on Monday on the back of strong performance. The scrip had settled at Rs 55.45 on Friday. The company's market capitalization stood little shy of Rs 620 crore.

Servotech Power Systems shares have turned multibagger after the stock gained over 240 per cent in the last one year. In 2023, the counter has rallied about 80 per cent so far. The stock has gained about 35 per cent in the last one month.

For the entire year ended on March 31, 2023, the company reported a 170 per cent jump in the net profit at Rs 11.06 crore against Rs 4.06 crore in the year ago period. Revenue from operations surged 88 per cent to Rs 269.57 crore during the period under review.

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