Servotech share price: Experts give ‘buy’ tag after Q4 results 2024

Servotech share price: Despite the challenging market conditions, Servotech Power Systems Ltd declared its Q4 results 2024 on Thursday, showcasing a remarkable revenue growth of 13.89% in Q4 FY24 to 136.65 Cr & a growth of 27.49% in the year ended FY24 to 355.26 Cr on a YoY basis. The company’s profitability also demonstrated its resilience, with PAT increasing by 6.69% to 11.80 Cr in FY24. EBITDA increased by 18.05% to 22.36 Cr in FY24, a testament to its increased operational efficiency and the ability to generate higher-value products. The stock is currently trading at around 80 apiece and experts are expecting a bounce back in the solar stock once the sell-off pressure eases out on Dalal Street. They said that the company is expected to continue benefiting from the Government of India’s (GoI’s) focus on solar and other renewable energy initiatives. They noted that the stock has a crucial support placed at 65 apiece levels whereas it is facing immediate hurdle at 97 apiece. On breaching this immediate hurdle, Servotech share price may touch the 110 per share mark in the medium term.

Triggers for Servotech share price

Analysing the Q4 results 2024 of Servotech Power Systems, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, ‘The company has not only managed to report positive quarterly numbers, but it also holds a strategic position in the market that may lead to continued positive growth in upcoming quarters. The company is expected to benefit significantly from the GoI’s special focus on alternate energy sources. The company has recently managed to secure orders from various energy PSUs, and this trend is expected to grow further in upcoming quarters. However, it is a portfolio stock, and there can be a strong bounce back in the scrip after the Lok Sabha elections results. So, any dip in the stock should be seen as a buying opportunity.”

Also Read: Stock market today: Why is India VIX Index skyrocketing during Lok Sabha polls?

Servotech share price target

On what Servotech share price chart pattern signals, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, ‘The stock may give trend reversal in the near term as it has made a strong base at 65 per share level, which indicates a potential support level where buying pressure could outweigh selling pressure. If this support remains sacrosanct, we may expect the solar stock to touch the 97 apiece level in the near term, a significant resistance level where selling pressure could outweigh buying pressure. On breaching this immediate hurdle, we can expect Servotech share price to touch the 110 per share mark in the medium term.”

Servotech Q4 results 2024

On Thursday, Servotech Power Systems declared Q4 results for FY24. In Q4FY24, the company’s Total Revenue witnessed growth of 13.89% in Q4 FY24 to Rs. 136.65 Cr & a growth of 27.49% in the year ended FY24 to Rs. 355.26 Cr on a YoY basis, respectively, led by robust demand for our tech-enabled solutions in the Solar and EV space by our targeted customers. PAT increased by 6.69% to Rs. 11.80 Cr in FY24. EBITDA increased by 18.05% to Rs. 22.36 Cr in FY24 on account of an increase in the scale of operations, which was led by improving efficiencies and higher value products.”

Speaking on Q4 results 2024 of the company, Raman Bhatia, MD at Servotech Power Systems Ltd, said, “Our impressive growth can be attributed to our unwavering commitment to delivering cutting-edge, technologically advanced solutions in the EV and solar sectors. We’ve made significant strides in enhancing product quality and efficiency, which has made our products the preferred choice of our target audience, consequently driving market growth. We have not only increased our manufacturing capacity but have also introduced impactful innovations in EV chargers and solar solutions. Having deployed more than 5600 EV chargers, we are delighted to maintain a strong foothold as a key player in the EV charging industry, which has the potential to capture significant market share in the EV charging solutions segment.”

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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Published: 10 May 2024, 03:01 PM IST

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