Sarvotech Power stock rises 4% to fresh record high after Q1FY25 results

The share price of Sarvotech Power Systems rallied over 3.79 per cent on Wednesday's trading session. The stock closed at ₹124 on July 31, against previous close at ₹119.47.

The stock jumped after the company posted a 9 per cent increase in consolidated profit after tax to ₹4.48 crore for the June quarter of FY25, driven by higher revenues. The company's profit after tax for the April-June FY24 period was ₹4.10 crore. Total revenues rose to ₹112.44 crore, up from ₹79.81 crore in the same quarter the previous year.

"We got outstanding results in Q1FY25. We are also expanding our sales and marketing efforts. We are excited about the future of our company. With the Safiabad plant set to become fully operational soon, we will be able to significantly increase our production capacity to meet the growing demand of our products," said founder and Managing Director Raman Bhatia.

In the first quarter of FY25, the company achieved a notable 20% increase in EBITDA, rising from ₹712.89 lacs in Q1 FY24 to ₹853.74 lacs. This significant improvement reflects the company's enhanced operational efficiency and profitability during this period.

Gross Profit also saw a substantial rise of 29 per cent, climbing from ₹1,577.52 lacs in Q1 FY24 to ₹2,038.34 lacs in Q1 FY25. This increase underscores the company's successful strategies in boosting revenue and managing costs more effectively.

Additionally, Profit Before Tax (PBT) stood at ₹614.47 lacs in Q1 FY25, marking a 12% growth from ₹549.14 lacs recorded in Q1 FY24. This upward trend in PBT highlights the company’s overall financial health and its ability to improve profitability year over year.

On a standalone basis, Servotech reported a net PAT of ₹4.74 crore, representing an 18 per cent year-on-year increase from ₹4.02 crore during the same period last fiscal year.

Servotech Power Systems, a small-cap firm based in Delhi with a market capitalization of ₹2,670 crore, recently launched Delhi's first grid-connected solar-powered EV charging carport. In the past year, Servotech's shares have delivered a 28 per cent return, and over the last five years, the stock has surged more than 4,646 per cent, greatly increasing investor wealth.

“Servotech Power shares are currently in ₹110 to ₹130 range. The stock may go up to ₹245 if it breaches above ₹130 decisively. Shareholders are advised to hold the scrip with stop loss at ₹110 for short term Target of ₹145. Fresh buying is allowed above 130 for ₹145 Target maintaining strict stop loss at ₹120,” said Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi.