Servotech Power Systems is a small cap company that recorded a market cap of ₹942 Cr during Thursday’s closing session. Servotech is a leading manufacturer of solar, EV charging solutions and medical devices. The stock hit a 5% upper circuit today despite being a multibagger stock as the Board declares stock split in 2:1 ratio for the eligible shareholders.
The Board of Directors have approved “The sub-division (split) of Equity Share of the Company having a face value of Rs. 2/- (Rupees Two only) each (fully paid-up) into Two (2) Equity Shares of face value of Rs. 1/- (Rupees One only) each (fully Paidup),” said Servotech Power Systems in a stock exchange filing.
Stating the rationale behind stock split, Servotech Power Systems said the approval has been made to enhance the liquidity of the Company’s equity shares and to encourage wider participation in the stock market.
The Board of Directors of Servotech Power Systems Limited (“Company”), upon recommendation of its subCommittees, at its meeting held on 25th May, 2023 has nominated the appointment of Mr. Meenakshisundaram Kolandaivel as the Non-Executive Independent Director of the company subject to the approval of shareholders of the company with effect from 25th June, 2023 for a period of 3 years.
Servotech Power Systems reported a multi-fold increase in consolidated net profit for the March quarter 2022–23, coming in at ₹6.05 crore, compared to ₹1.3 crore recorded in the same quarter a year earlier. From ₹51.10 crore during the same time last year, the total revenue climbed to ₹120 crore. Profit climbed to ₹11.06 crore for the full fiscal year 2022–2023 from ₹4.05 crore the previous year. From ₹144.25 crore in fiscal 2021–2022 to ₹278.64 crore in fiscal 2022-23, total income rose significantly.
The shares of Servotech Power Systems opened today at ₹80.25 and went on to hit an intraday high of ₹88.65 causing it to lock in upper circuit level of 5% at the closing deals. The stock price rose from ₹5.04 to the current market price during the past five years, representing a multibagger gain of 1,658.93%. The stock price climbed from ₹1.93 to the current market price over the past three years, resulting in a multibagger return of 4,691.89%. The stock price jumped from ₹13.37 to the current market price during the course of 1 year, resulting in a multibagger return of 563.05%. On a year-to-date basis, the scrip advanced from ₹32.38 to the current market price, resulting in a multibagger return of 173.78% so far in 2023. The stock touched a 52-week-high of ₹97.95 on (23-May-2023) and a 52-week low of ₹11.40 on (26-Jul-2022).
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