On Monday, shares of Servotech Power Systems hit the upper deck after the company announced a strong performance in the quarter, which ended on June 30, 2023. The company reported a manifold increase in net profit in the first quarter of the year, while its revenue rose more than doubled.
Servotech Power Systems clocked a 1,050 percent rise in the consolidated net profit on a year-on-year basis to 4.11 crore in June 2023, compared to a bottom line of Rs. 0.36 crore in the same quarter a year ago. In Q1 of FY24, it generated Rs 79.57 crore in operating revenue, which was Rs 32.04 crore a year ago.
Following the announcement of results, shares of Servotech Power System surged 5 per cent on Monday, reaching its daily circuit limit of 171.65, with a total market capitalization of more than 1,825 crore. The NSE-listed scrip had a value of 163.50 on Friday.
Shareholders have said the company has fixed July 28th, 2023, as the record day for the sub-division of its equity shares. The company will split the equity shares in a 1:2 ratio, meaning that shares with a face value of Rs 2 each will be split into two shares with a face value of Re 1 each.
NSE-listed Servotech said it will announce a sub-division split of its equity shares in May 2023 to enhance the liquidity of the company s equity shares and to encourage wider participation in the stock market.
Servotech Power Systems shares have delivered multibaggers to investors. The value of the stock has zoomed more than 1,400 per cent from its 52-week low at Rs11.40. The scrip's value has grown more than 430 percent in the year 2023, while it has surged 325 percent in the last six months.
In February this year, the company had split its equity shares into 1 - 5 ratios. The shares with a face value of Rs 10 each were divided into five equity shares with a face value of Rs 2 each. This is the second split announced in 2023 by the company.
Servotech Power Systems, a leading manufacturer and distributor of EV charging solutions, solar products, and medical devices, is based in New Delhi. It also manufactures and distributes EV charging solutions, solar products and medical devices.