Synopsis:
The shares of this electrical gear firm are in focus at the moment after the corporate acquired an order for an on-grid photo voltaic venture price Rs 16.31 crore from a three way partnership of the Ministry of Railways.
This firm, which is a diversified clean-energy and power-electronics producer providing EV chargers, photo voltaic merchandise, energy-storage methods, and backup energy options, had its shares within the highlight at the moment, following the announcement of the corporate bagging an order.
With the market cap of Rs 2,187 crore, the shares of Servotech Renewable Energy System Ltd gained roughly 1.3 per cent and made a excessive of Rs 98.8 from its earlier day closing worth of Rs 97.52. The shares are buying and selling at a PE of 100, whereas their trade PE is 51, and have given a 539% return in 3 years.
In regards to the order
The corporate has been awarded a brand new contract by Railway Power Administration Firm Ltd to ship a solar energy venture on the Devoted Freight Hall Company of India Ltd complicated in Noida. This includes the total spectrum of actions: design, provide, set up, testing, and commissioning, masking each ground-mounted and rooftop solar energy methods.
The contract, valued at Rs 16.31 crore, is to be executed domestically and accomplished inside 12 months from the date of the Letter of Award. The venture is ruled by basic contract situations and managed underneath the three way partnership of REMCL, RITES Ltd, and the Ministry of Railways, furthering photo voltaic vitality infrastructure for the Indian rail freight sector.
Financials and others
The income from operations for the corporate is at Rs 106.49 crore in Q2 FY26 versus Rs 199.67 crore in Q2 FY25, which is a fall of about 47 per cent on a YoY foundation. Equally, there was a fall in web revenue by 96 per cent after we examine the Q2 FY25 revenue of Rs 11.25 crore with the Q2 FY26 revenue of Rs 0.39 crore.
The corporate has secured a complete of 43 MW in photo voltaic venture wins, unfold throughout 7 main contracts. An enormous share of those orders comes from Indian Railways, with tasks throughout divisions reminiscent of North Western Railway, jaipur (7.3 MW), East Coast Railway (4.1 MW), North Central Railway, agra (3 MW), South Jap Railway in Ranchi (2.58 MW), and Northern Railway in Moradabad (1.2 MW).
It has additionally received a major 16 MW venture from MP Urja Vikas Nigam Ltd. (MPUVN). Collectively, these wins present the corporate’s strengthening presence in government-led photo voltaic initiatives and its functionality to deal with large-scale installations throughout a number of areas.
The corporate works with among the most trusted names throughout India, from oil and gasoline giants like HPCL, IndianOil, and BPCL to massive establishments reminiscent of Indian Railways and MP Urja Vikas Nigam. It’s additionally a most popular associate for main personal gamers, together with Tata Energy, Tata Motors, Adani Fuel, Nayara Power, MG, and Maruti Suzuki, and even serves well-known hospitality manufacturers like ITC Lodges and Oberoi. This huge mixture of shoppers reveals how strongly the corporate is valued throughout a number of industries, from vitality and mobility to infrastructure and companies.
Servotech Renewable Energy System Ltd is certainly one of India’s outstanding names in clean-energy expertise, recognized for constructing dependable photo voltaic merchandise and EV charging options. With sturdy manufacturing capabilities, an energetic R&D workforce, and a presence throughout the nation, the corporate develops every little thing from photo voltaic panels and inverters to batteries and fashionable EV chargers. By means of its rising partnerships and large-scale installations, Servotech has change into an necessary a part of India’s shift towards cleaner, smarter, and extra environment friendly vitality methods.
Written by Leon Mendonca
Disclaimer
The views and funding suggestions expressed by funding consultants/broking homes/ranking businesses on tradebrains.in are their very own, and never that of the web site or its administration. Investing in equities poses a danger of economic losses. Buyers should due to this fact train due warning whereas investing or buying and selling in shares. Commerce Brains Applied sciences Personal Restricted or the creator aren’t responsible for any losses triggered because of the choice based mostly on this text. Please seek the advice of your funding advisor earlier than investing.
