Servotech Renewable Power System Ltd (SERVOTECH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rishabh Instrum.

Ram Ratna Wires

Alpex Solar

Bharat Bijlee

Marsons

Spectrum Electr.

Servotech Renew

HPL Electric

Danish Power

Yash Highvoltage

Modern Insulator

Why is Servotech Renewable Power System Ltd ?

Flat results in Mar 26

DEBT-EQUITY RATIO(HY) Highest at 0.73 times
DEBTORS TURNOVER RATIO(HY) Lowest at 3.36 times
INTEREST(Q) Highest at Rs 4.10 cr

With ROCE of 11.4, it has a Expensive valuation with a 6.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -100.00%, its profits have risen by 2.5% ; the PEG ratio of the company is 65.2

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.59% over the previous quarter and collectively hold 0.14% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -100.00% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Servotech Renew for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Servotech Renew

-23.78%

-0.46

52.04%

Sensex

-7.92%

-0.61

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

46.98%

EBIT Growth (5y)

58.37%

EBIT to Interest (avg)

4.59

Debt to EBITDA (avg)

2.84

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

1.99

Tax Ratio

23.80%

Dividend Payout Ratio

9.22%

Pledged Shares

4.24%

Institutional Holding

0.14%

ROCE (avg)

12.07%

ROE (avg)

11.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.80

EV to EBIT

54.82

EV to EBITDA

39.81

EV to Capital Employed

6.24

EV to Sales

3.98

PEG Ratio

65.24

Dividend Yield

0.04%

ROCE (Latest)

11.39%

ROE (Latest)

11.65%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

PAT(Latest six months)

Higher at Rs 26.98 cr

INVENTORY TURNOVER RATIO(HY)

Highest at 12.31 times

NET SALES(Q)

At Rs 217.33 cr has Grown at 48.57%

PBT LESS OI(Q)

At Rs 11.37 cr has Grown at 21.86%

-11What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 0.73 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.36 times

INTEREST(Q)

Highest at Rs 4.10 cr

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Here's what is working for Servotech Renew

Net Sales - Quarterly

At Rs 217.33 cr has Grown at 48.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 12.28 cr has Grown at 57.6%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Highest at 12.31 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales - Quarterly

Highest at Rs 217.33 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 11.37 cr has Grown at 21.86%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Servotech Renew

Interest - Quarterly

Highest at Rs 4.10 cr

in the last five quarters and Increased by 21.30 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.73 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 3.36 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 1.67 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income