ScoreWhy is Servotech Renewable Power System Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 3.15 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 46.98% and Operating profit at 58.37%
3
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
4
With ROCE of 11.4, it has a Expensive valuation with a 5.6 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 58
5
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
6
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 ReportHow much should you hold?
- Overall Portfolio exposure to Servotech Renew should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Servotech Renew for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Servotech Renew
-32.56%
-0.62
52.43%
Sensex
-4.99%
-0.37
13.48%
Quality
Management Risk
Growth
Capital StructureQuality 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
3.43%
Pledged Shares
4.24%
Institutional Holding
0.14%
ROCE (avg)
12.07%
ROE (avg)
11.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
67
Industry P/E
Price to Book Value
7.83
EV to EBIT
49.06
EV to EBITDA
35.63
EV to Capital Employed
5.59
EV to Sales
3.57
PEG Ratio
58.00
Dividend Yield
0.05%
ROCE (Latest)
11.39%
ROE (Latest)
11.65%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 12.31 times
PAT(Q)
At Rs 12.28 cr has Grown at 57.6%
NET SALES(Q)
Highest at Rs 217.33 cr
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
Loading Valuation Snapshot...
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 periodsMOJO 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 quartersMOJO 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 periodsMOJO 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 periodsMOJO 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 quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
