Locked in 5% upper circuit, multibagger stock declares dividend, 1:5 stock split
Servotech Power Systems Limited, an NSE-listed company with a history spanning more than two decades, is one of India’s top producers and suppliers of solar, EV charger, LED, UVC, and medical-grade products. This small-cap company’s market valuation was ₹471 Cr on Friday. In the quarter ended December 2022 or Q3FY23, the company declared an interim dividend of Rs. 0.20/- per equity share, stock split in a 1:5 ratio and raised 77%of the preferential issue through Foreign Portfolio Investor (FPI); the rest was raised through Indian individuals and corporates.
The firm has declared an interim dividend of Re. 0.20 per equity share of the company for the fiscal year 2022–2023, and the amount of the interim dividend will be credited to the accounts of eligible shareholders on or around Saturday, February 18, 2023. In addition to the dividend, the Board also announced a stock split at a ratio of 1:5, or the division of one equity share worth Rs. 10 per share into five equity shares worth Rs. 2 each. The corporation has set the record date for the two corporate actions stated above as February 3, 2023.
The firm said that it has expanded its channel distribution network across India and has reached the milestone of providing more than 1500 EV chargers during the quarter that ended in December 2022, or Q3FY23. Additionally, Servotech Power Systems said that it has expanded into the international business market and developed ComPort, a solar performance monitoring device. The company recorded a strong third-quarter performance in addition to incorporating Techbec, a manufacturer of Li-Ion and tubular batteries, and implementing corporate actions including a dividend and stock split.
In the third quarter of FY23, the firm recorded net sales of ₹83.27 crore on a consolidated basis, up 101% from the ₹41.41 crore reported in the 3rd quarter of FY22. In comparison to the ₹1.07 Cr reported in Q3FY22, the firm recorded a consolidated net profit of ₹3.87 Cr in Q3FY23, reflecting a YoY rise of 261%. Servotech Power Systems’ earnings per share (EPS) jumped from ₹0.58 in Q3FY22 to ₹1.82 in the quarter that ended in December 2022.
On the NSE, the shares of Servotech Power Systems on Friday locked in a 5% upper circuit level of ₹221.60 at closing after touching an intraday low of ₹215.00. The stock recorded a total volume of 234,621 shares compared to the 20-Day average volume of 42,413 shares. The stock has been moving toward its upper circuit since January 19, 2023, according to the chart pattern, which shows a positive trend over the preceding six trading sessions.
The company went public on the NSE on September 2, 2021, and since then has climbed by 622.02%, reaching an all-time high from its IPO price of ₹31 per share. The stock price climbed from ₹107.55 on January 31, 2022, to the current market price during the course of 1 year, resulting in a multibagger return of 106.04%. The stock has risen 36.87% year to date, and in the past six months, it has surged from ₹59.30 on August 1, 2022, to the present price level, generating a multibagger return of 273.69%.
The stock has appreciated by 26.20% during the past five trading sessions and by 39.33% over the past month. The stock touched a 52-week-low of ₹57.00 on (26-Jul-2022), indicating that after reaching an all-time high level on Friday, the stock was seen trading 288.77% above the 1-year low. Servotech Power Systems reported a promoter shareholding of 60.59% and a public stake of 39.41% for the quarter Q3FY23.
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