Servotech Power Systems Ltd. (SERVOTECH) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 0.04%
• Average Volume (3M): 566.72K
• Price to Earnings (P/E): 86.8
• Beta (1Y): 1.83
• Revenue Growth: 80.94%
• EPS Growth: 158.34%
• Country: IN
• Employees: 291
• Sector: Services
• Sector Strength: N/A
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.23
• Shares Outstanding: 224,845,350
• 10 Day Avg. Volume: 309,272
• 30 Day Avg. Volume: 566,722
• PEG Ratio: 0.51
• Price to Book (P/B): 12.05
• Price to Sales (P/S): 4.23
• P/FCF Ratio: -35.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹140.00
• Price Target Upside: 11.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ₹140.00 ▲(11.50% Upside)

Servotech Power Systems Ltd. demonstrates strong financial performance with robust revenue and profit growth, although cash flow management needs improvement. Technical indicators are neutral, suggesting balanced market sentiment. However, the high P/E ratio indicates potential overvaluation, which weighs down the overall score.

Servotech Power Systems Ltd. Business Overview & Revenue Model

Company Description

Servotech Power Systems Limited manufactures and sells solar and light emitting diode (LED) products in India. The company offers LED lighting products, including LED tube lights, street lights, flood lights, canopy lights, panel lights, bay lights, and yard lights. It also provides solar products, such as solar home lighting systems, integrated solar street light, solar pumping system, solar lithium batteries, and solar power systems, as well as MPPT solar charge controllers for home and street lights, and PV ports. In addition, the company offers UV-C disinfectant products, which includes UV disinfection lamp, UV disinfection handheld, UV disinfection truck, sterilization box, and UVC robotruk. The company serves government projects, institutional, hospital, education, banking, telecom, and corporate industries. Servotech Power Systems Limited was incorporated in 2004 and is based in New Delhi, India.

How the Company Makes Money

Servotech Power Systems Ltd. generates revenue through various streams. The primary sources include the sale of its power electronics products such as UPS systems, which are essential for providing reliable power backup solutions across different industries. The company also capitalizes on the growing demand for renewable energy solutions by offering solar products, which contribute significantly to its earnings. Additionally, SERVOTECH earns from its LED lighting solutions, which are in demand due to their energy efficiency and long lifespan. The emerging sector of electric vehicle infrastructure provides another revenue stream, as SERVOTECH supplies EV charging stations. Partnerships and collaborations with government bodies and private enterprises further enhance its market reach and revenue potential.

Servotech Power Systems Ltd. Financial Statement Overview

Summary

Servotech Power Systems Ltd. shows strong revenue and profit growth with improved margins and operational efficiency. The balance sheet is stable with a solid equity base but moderate leverage. However, cash flow challenges, particularly in operating activities, require attention to improve liquidity.

Income Statement

Servotech Power Systems Ltd. demonstrates strong revenue growth, with revenue increasing significantly from 2024 to 2025. The gross profit margin has improved, suggesting better cost management, and the net profit margin has seen substantial improvement, indicating increased profitability. The EBIT and EBITDA margins have also strengthened, reflecting improved operational efficiency. These factors contribute to a robust financial performance in the income statement.

Balance Sheet

The balance sheet shows a healthy increase in stockholders' equity, reflecting strong retained earnings. However, the debt-to-equity ratio remains moderate, indicating manageable leverage, while the equity ratio suggests solid asset funding through equity. Return on equity has improved, demonstrating effective use of shareholder funds. Overall, the balance sheet is stable but carries some risk with the existing debt levels.

Cash Flow

Operating cash flow has turned negative in 2025, which raises concerns about cash generation from operations. Free cash flow also reflects a decline, indicating higher capital expenditures or operational challenges. The ratio of operating cash flow to net income suggests inefficiencies in converting income into cash. Despite this, the company has positive financing cash flow, suggesting external funding support. Cash flow management requires attention to improve liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.99B	6.74B	3.54B	2.78B	1.44B	869.94M
Gross Profit	1.07B	889.85M	568.54M	481.44M	185.69M	117.71M
EBITDA	590.62M	579.38M	223.93M	190.94M	89.69M	55.14M
Net Income	334.97M	327.35M	117.62M	110.41M	40.38M	9.18M
Balance Sheet
Total Assets	0.00	4.10B	2.77B	1.67B	894.01M	983.23M
Cash, Cash Equivalents and Short-Term Investments	425.43M	425.43M	664.25M	171.73M	79.56M	33.93M
Total Debt	0.00	751.36M	759.75M	435.73M	213.45M	266.50M
Total Liabilities	-2.38B	1.72B	1.34B	845.70M	431.24M	588.87M
Stockholders Equity	2.38B	2.37B	1.42B	820.91M	462.70M	394.35M
Cash Flow
Free Cash Flow	0.00	-807.98M	-253.76M	-372.60M	48.93M	12.07M
Operating Cash Flow	0.00	-626.76M	7.92M	-242.77M	75.06M	12.07M
Investing Cash Flow	0.00	-163.10M	-259.80M	-128.77M	-24.02M	2.54M
Financing Cash Flow	0.00	478.36M	753.89M	454.51M	-5.42M	-12.07M

Servotech Power Systems Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 125.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SERVOTECH, the sentiment is Negative. The current price of 125.56 is below the 20-day moving average (MA) of 129.73, below the 50-day MA of 129.32, and below the 200-day MA of 135.43, indicating a bearish trend. The MACD of -1.41 indicates Positive momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 17.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SERVOTECH.

Servotech Power Systems Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SERVOTECH	63 Neutral	―	86.82	―	0.04%	80.94%	158.34%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Servotech Power Systems Ltd. Corporate Events

Servotech Announces AGM Notice and E-Voting Information

Servotech Renewable Power System Ltd. has announced the publication of a newspaper advertisement regarding the notice of its Annual General Meeting and e-voting information. This announcement is in compliance with the Companies Act, 2013, and SEBI regulations, ensuring transparency and stakeholder engagement in the company’s governance processes.

Servotech Partners with BEKEM for Renewable Energy Projects

Servotech Renewable Power System Limited has announced a joint venture with BEKEM Infra Projects Private Limited to participate in government-led renewable energy projects. This collaboration aims to enhance their involvement in initiatives such as the PM Surya Ghar: Muft Bijli Yojana, potentially strengthening Servotech’s position in the renewable energy sector and expanding its market reach.

Servotech Releases Q1 FY2025-26 Financial Results

Servotech Renewable Power System Limited has released its unaudited financial results for the quarter ending June 30, 2025. This disclosure, in line with SEBI regulations, is available on the company’s website and highlights the company’s ongoing commitment to transparency and regulatory compliance, potentially impacting investor confidence and market positioning.

Servotech Secures INR 60 Crore Solar Rooftop Project in Madhya Pradesh

Servotech Renewable Power System Limited has secured a significant contract worth approximately INR 60 crores from Madhya Pradesh Urja Vikas Nigam Ltd. for a 16 MW on-grid solar rooftop project. This contract, which involves the installation of solar systems with capacities ranging from 1 KW to 500 KW across various locations in Madhya Pradesh, is expected to be completed within five months. The acquisition of this contract highlights Servotech’s growing influence in the renewable energy sector and its commitment to expanding solar infrastructure, potentially boosting its market position and offering substantial benefits to its stakeholders.