Servotech Renew

Why is Servotech Renewable Power System Ltd falling/rising?

As of 29-Jul, Servotech Renewable Power System Ltd's stock price is declining at 92.25, with a significant underperformance compared to the Sensex. The stock has dropped -34.61% over the past year, reflecting poor investor interest and high valuation metrics despite some positive financial indicators.

As of 29-Jul, Servotech Renewable Power System Ltd's stock price is falling, currently at 92.25, reflecting a change of -0.8 (-0.86%). The stock has underperformed significantly compared to the benchmark Sensex, with a 1-week decline of -7.69% while the Sensex increased by +1.06%. Over the past month, the stock has also decreased by -3.61%, contrasting with the Sensex's gain of +1.27%. <BR><BR>In terms of longer-term performance, the stock has generated a return of -34.61% over the past year, while the Sensex has only declined by -2.30%. This underperformance is compounded by a lack of investor participation, as evidenced by a 34.48% drop in delivery volume compared to the 5-day average. <BR><BR>Despite some positive indicators, such as a strong ability to service debt and healthy long-term growth in net sales and operating profit, the stock is viewed as having an expensive valuation with a Return on Capital Employed (ROCE) of 11.4 and a PEG ratio of 4.9. Furthermore, domestic mutual funds hold no stake in the company, which may indicate a lack of confidence in its current valuation or business prospects. Overall, the combination of poor recent performance, declining investor interest, and high valuation metrics contributes to the stock's falling price.

Which are the latest news on Servotech Renew?

Should I buy, sell or hold Servotech Renewable Power System Ltd?

Are Servotech Renewable Power System Ltd latest results good or bad?

Servotech Renewable Power System Ltd's latest results show strong year-on-year growth in revenue and net profit, but there are concerns due to sequential declines and compressed operating margins. Investors should monitor future performance for signs of improvement in profitability and operational efficiency.

Servotech Renewable Power System Ltd's latest results present a mixed picture. On one hand, the company reported a significant year-on-year increase in both revenue and net profit for Q1 FY27, with revenue rising by 57.81% to ₹215.79 crores and net profit increasing by 74.62% to ₹9.15 crores. This indicates strong demand and growth potential, particularly in the context of India's renewable energy push.<BR><BR>However, the quarterly performance also reveals some concerning trends. There was a sequential decline in both revenue and net profit, with revenue down 0.71% and net profit down 25.49% compared to the previous quarter. Additionally, operating margins have compressed significantly, dropping to 9.47% from 10.37% in the prior quarter and 10.40% a year earlier. This suggests that while the company is growing its top line, it is facing challenges in maintaining profitability and operational efficiency.<BR><BR>Overall, while the year-on-year growth figures are impressive, the sequential declines and margin pressures raise questions about the sustainability of this growth and the company's ability to manage operational challenges effectively. Investors may want to approach with caution, monitoring future results closely for signs of improvement in margins and cash flow.

What does Servotech Renew do?

Servotech Renewable Power Systems Limited is a small-cap company in the electrical equipment industry, focusing on renewable energy solutions. As of March 2026, it reported net sales of ₹217 Cr and a net profit of ₹12 Cr, with a market cap of ₹2,305 Cr.

Overview: <BR>Servotech Renewable Power Systems Limited operates in the Other Electrical Equipment industry and is categorized as a Small Cap company.<BR><BR>History: <BR>The company was initially incorporated in 2004 as 'Servotech Power Systems Private Limited', later converted to a Public Limited Company in 2017, and renamed to 'Servotech Renewable Power Systems Limited' in December 2024. The latest quarterly results reported net sales and net profit for March 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 217 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 12 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 2,305 Cr (Small Cap)<BR><BR>Key Metrics: <BR>P/E: 67.00 <BR>Industry P/E: 58 <BR>Dividend Yield: 0.05% <BR>Debt-Equity: 0.49 <BR>Return on Equity: 11.65% <BR>Price to Book: 8.12 <BR><BR>Contact Details: <BR>Address: 806 8th Flr Crown Height, Hotel Crown Plaza Sec.10 Rohi. New Delhi Delhi : 110085 <BR>Tel: 91-11-41117657-60 <BR>Email: servotech@servotechindia.com <BR>Website: http://www.servotech.in

How big is Servotech Renew?

As of 10th June, Servotech Renewable Power System Ltd has a market capitalization of 2,305.00 Cr, with recent net sales of 671.63 Cr and a net profit of 33.55 Cr.

As of 10th June, Servotech Renewable Power System Ltd has a market capitalization of 2,305.00 Cr, classifying it as a Small Cap company.<BR><BR>In the latest four quarters, the company reported Net Sales of 671.63 Cr and a Net Profit of 33.55 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 236.59 Cr and Total Assets of 409.84 Cr.

Who are in the management team of Servotech Renew?

The management team of Servotech Renew includes Raman Bhatia (Managing Director), Sarika Bhatia and Nimesh Malhotra (Whole-time Directors), Priya Pandey (Company Secretary), and several Independent Directors: Sahil Khurana, Rajesh Mohan Rai, Anupam Gupta, and Sampat Rai, along with Jorg Gabler (Director). They oversee the company's operations and strategic direction.

The management team of Servotech Renew includes the following members:<BR><BR>1. **Raman Bhatia** - Managing Director<BR>2. **Sarika Bhatia** - Whole-time Director<BR>3. **Nimesh Malhotra** - Whole-time Director<BR>4. **Priya Pandey** - Company Secretary & Compliance Officer<BR>5. **Sahil Khurana** - Independent Director<BR>6. **Rajesh Mohan Rai** - Independent Director<BR>7. **Anupam Gupta** - Independent Director<BR>8. **Sampat Rai** - Independent Director<BR>9. **Jorg Gabler** - Director<BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

Who are the peers of the Servotech Renew?

Servotech Renew's peers include Shilchar Tech., Ram Ratna Wires, Bharat Bijlee, and others, with varying management and growth risks. Rishabh Instrum. leads in 1-year returns at 75.95%, while Servotech Renew has a return of -38.54%.

Peers: The peers of Servotech Renew are Shilchar Tech., Ram Ratna Wires, Bharat Bijlee, Spectrum Electr., Alpex Solar, HPL Electric, Rishabh Instrum., Marsons, Danish Power, and Yash Highvoltage.<BR><BR>Quality Snapshot: Excellent management risk is observed at Shilchar Tech., Bharat Bijlee, Alpex Solar, Danish Power, and the rest have Average management risk, including Ram Ratna Wires, Spectrum Electr., HPL Electric, Servotech Renew, and Yash Highvoltage. Growth is Excellent for Shilchar Tech., Ram Ratna Wires, Bharat Bijlee, Alpex Solar, Servotech Renew, and Danish Power, while Good growth is noted at Spectrum Electr., and Average growth is seen at HPL Electric. Capital Structure is Excellent for Shilchar Tech., Bharat Bijlee, Alpex Solar, and Danish Power, while Good capital structure is found at Servotech Renew, Average at Ram Ratna Wires and Spectrum Electr., and Below Average at HPL Electric and Marsons.<BR><BR>Return Snapshot: Rishabh Instrum. has the highest 1-year return at 75.95%, while HPL Electric has the lowest at -38.72%. Servotech Renew's 1-year return of -38.54% is slightly better than HPL Electric's. Additionally, HPL Electric and Marsons have negative six-month returns.

How has been the historical performance of Servotech Renew?

Servotech Renew has shown significant growth over the past five years, with net sales increasing from 86.99 Cr in Mar'21 to 674.44 Cr in Mar'25, and profit after tax rising from 0.92 Cr to 32.64 Cr. However, cash flow from operating activities has turned negative, indicating challenges in cash management despite strong sales and profitability growth.

Answer:<BR>The historical performance of Servotech Renew shows significant growth in various financial metrics over the past five years.<BR><BR>Breakdown:<BR>Servotech Renew has demonstrated a remarkable increase in net sales, rising from 86.99 Cr in Mar'21 to 674.44 Cr in Mar'25. This growth is reflected in total operating income, which also increased from 86.99 Cr to 674.44 Cr during the same period. The company's total expenditure, excluding depreciation, rose from 82.15 Cr in Mar'21 to 618.86 Cr in Mar'25, indicating higher operational costs associated with increased sales. Operating profit (PBDIT) surged from 4.84 Cr in Mar'21 to 57.94 Cr in Mar'25, showcasing improved profitability, while profit before tax climbed from 1.15 Cr to 44.81 Cr. Consequently, profit after tax increased significantly from 0.92 Cr in Mar'21 to 32.64 Cr in Mar'25, leading to a rise in earnings per share from 0.5 to 1.46. The company's total assets grew from 89.39 Cr in Mar'22 to 409.84 Cr in Mar'25, with total liabilities also increasing from 19.21 Cr to 75.14 Cr. Cash flow from operating activities showed a negative trend, with a cash outflow of 55.00 Cr in Mar'25, contrasting with positive cash flows in previous years. Overall, Servotech Renew's financial trajectory indicates robust growth in sales and profitability, despite challenges in cash flow management.

Is Servotech Renew technically bullish or bearish?

As of 27 October 2025, Servotech Renew's technical trend is bearish with moderate strength, driven by bearish signals from the weekly MACD, Bollinger Bands, and daily moving averages, despite mixed longer-term indicators.

As of 27 October 2025, the technical trend has changed from mildly bearish to bearish. The current technical stance for Servotech Renew is bearish with moderate strength. Key indicators driving this stance include the weekly MACD and Bollinger Bands both showing bearish signals, alongside daily moving averages confirming a bearish trend. The KST is also bearish on the weekly timeframe, while the Dow Theory indicates a mildly bearish outlook on the weekly and mildly bullish on the monthly, suggesting mixed signals in longer timeframes. Overall, the bearish indicators dominate, reflecting a negative sentiment in the current market conditions.

Is Servotech Renew overvalued or undervalued?

As of October 17, 2025, Servotech Renew is considered overvalued with a PE ratio of 83.33 and an EV to EBITDA of 48.94, reflecting high valuation levels despite underperforming the Sensex with a year-to-date return of -25.83%.

As of 17 October 2025, the valuation grade for Servotech Renew has moved from very expensive to expensive, indicating a slight shift in perception but still reflecting high valuation levels. The company is currently considered overvalued. Key ratios include a PE ratio of 83.33, an EV to EBITDA of 48.94, and a PEG ratio of 0.48, which suggests that despite high earnings multiples, growth expectations may not justify such valuations.<BR><BR>In comparison to peers, Siemens Energy Industries has a significantly higher PE ratio of 113.01, while Apar Industries is more reasonably valued with a PE of 39.48. The high valuation of Servotech Renew is further underscored by its recent stock performance, which has underperformed the Sensex, with a year-to-date return of -25.83% compared to the Sensex's 8.73%. This combination of high valuation ratios and poor stock performance reinforces the assessment that Servotech Renew is overvalued in the current market context.

Who are the top shareholders of the Servotech Renew?

The top shareholders of Servotech Renew include promoter Raman Bhatia with 30.08%, 13 foreign institutional investors holding 2.86%, and the Enforcement Directorate Raipur as the highest public shareholder at 2.29%. Individual investors collectively own 31.16% of the shares, with the majority held by promoters and individuals.

The top shareholders of Servotech Renew include the promoters, who hold the majority of the shares. The promoter with the highest holding is Raman Bhatia, with a significant stake of 30.08%. Additionally, there are 13 foreign institutional investors (FIIs) holding 2.86% of the shares collectively. The highest public shareholder is the Enforcement Directorate Raipur, which holds 2.29%. Individual investors also have a notable presence, owning 31.16% of the shares. Overall, the majority of the company's shares are held by promoters and individual investors.

When is the next results date for Servotech Renew?

No Upcoming Board Meetings

Has Servotech Renew declared dividend?

Servotech Renewable Power System Ltd has declared a 5% dividend, amounting to 0.05 per share, with an ex-date of September 20, 2024. While the company has shown significant price returns over the years, dividend returns have been modest.

Servotech Renewable Power System Ltd has declared a 5% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 5%<BR>- Amount per share: 0.05<BR>- Ex-date: 20 Sep 2024<BR><BR>Dividend Yield: 0.03%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -13.99%, with a dividend return of 0%, resulting in a total return of -13.99%.<BR><BR>Over the past year, the price return was 89.78%, the dividend return was 0.06%, leading to a total return of 89.84%.<BR><BR>In the 2-year period, the price return was 140.38%, the dividend return was 0.08%, culminating in a total return of 140.46%.<BR><BR>For the 3-year period, the price return soared to 2104.5%, with a dividend return of 1.82%, resulting in a total return of 2106.32%.<BR><BR>In the last 4 years, the price return was an impressive 8177.04%, the dividend return was 19.02%, leading to a total return of 8196.06%.<BR><BR>Finally, over the past 5 years, the price return reached 16153.89%, with a dividend return of 31.96%, resulting in a total return of 16185.85%.<BR><BR>Overall, Servotech Renewable Power System Ltd has declared a dividend, and while recent performance shows significant price returns over the longer term, the dividend returns have been relatively modest in comparison.