1. At a Glance
Servotech is riding the EV and solar wave harder than a stock market meme. With a 108% profit CAGR over 5 years and a market cap crossing ₹3,100 Cr, the company is sparking serious investor attention. But at 94x earnings, are we buying growth or just vibes?
2. Introduction with Hook
Imagine if Elon Musk, Mukesh Ambani, and a solar panel had a baby — it might look like Servotech. From LED lights to ultra-fast EV chargers, this company is the Desi fusion of a clean-tech dream and an IPO-era hype machine.
- 5-year profit CAGR: 108%
- FY25 Net Profit: ₹33 Cr (from ₹0 in FY14)
- ROE in FY25: 19%
But also:
- Promoter holding steadily dropping
- P/E is hotter than your inverter during load-shedding (93.9x)
3. Business Model (WTF Do They Even Do?)
Servotech Renewable Power System Ltd is a manufacturer of:
- EV Chargers (hello airport contracts)
- Solar Products (panels, lights, etc.)
- Power Backup Solutions (UPS, inverters)
- LED lighting (because why not)
They’re also dipping their toes into nationwide EV infra with installations at places like Bengaluru Airport and pushing solar hardware via franchise deals like Onix Solar. It’s a product buffet, just add government subsidies and stir.
4. Financials Overview
Revenue Journey:
From ₹34 Cr in FY14 to ₹587 Cr in FY25 — that’s a solar-powered growth story.
FY25 Highlights (Standalone):
| Metric | FY25 | YoY Growth |
|---|---|---|
| Revenue | ₹587 Cr | +92% |
| EBITDA | ₹54 Cr | +170% |
| Net Profit | ₹33 Cr | +200% |
| OPM | 9.2% | Expansion |
| EPS | ₹1.49 | From ₹0.50 |
Topline? On fire. Bottomline? Lighting up. But margin volatility and debt jumps are red flags.
5. Valuation
At ₹140 per share, P/E = ~94x. For reference:
- Genus Power = 39x
- Apar Industries = 43x
- Servotech = “Valued like it’s running on rocket fuel”
Fair Value Range (EduInvesting Style):
- Pessimist View: ₹70–90 (20–30x P/E on FY25 EPS)
- Optimist View: ₹160–180 (on FY26E EPS of ₹2+, sector tailwinds)
- Reality Check: You’re paying for the dream. Better hope they keep delivering.
6. What’s Cooking – News, Triggers, Drama
- Jun 2025: Bagged order for ultra-fast EV chargers at Bengaluru Airport
- Jul 2025: Shareholders to vote on ₹600 Cr borrowing limit (Gulp!)
- 2024–25: Solar PV franchise biz added, Onix Solar nationwide rights
- Falling FII holding: From 9.4% to 3.0% in a year
Bonus drama: 2-3 postal ballots in 12 months. Boardroom popcorn time.
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹21 Cr | ₹22 Cr | ₹22 Cr |
| Reserves | ₹60 Cr | ₹107 Cr | ₹202 Cr |
| Borrowings | ₹42 Cr | ₹81 Cr | ₹75 Cr |
| Fixed Assets | ₹21 Cr | ₹32 Cr | ₹70 Cr |
| Total Assets | ₹153 Cr | ₹258 Cr | ₹384 Cr |
Key Observations:
- Debt doubled FY23–FY24 but decreased slightly in FY25
- Strong reserves = retained earnings story
- Capex expanding — that EV biz won’t scale itself
8. Cash Flow – Sab Number Game Hai
| Type | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | -₹27 Cr | -₹1 Cr | -₹51 Cr |
| CFI | -₹11 Cr | -₹25 Cr | -₹16 Cr |
| CFF | ₹45 Cr | ₹71 Cr | ₹39 Cr |
| Net Cash Flow | ₹7 Cr | ₹45 Cr | -₹28 Cr |
Analysis:
- Operating cash is bleeding — classic high-growth problem
- Financing supports growth; you gotta fund those chargers somehow
- ₹51 Cr negative CFO in FY25… painful
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 17% | 11% | 20% |
| ROE | 16% | 19% | 19% |
| Debtor Days | 115 | 96 | 87 |
| Inventory Days | 26 | 49 | 48 |
| CCC | 112 | 103 | 99 |
They’re managing working capital better. ROCE rebounded sharply. But P/E ≠ justified purely on financials. You’re buying story, not value.
10. P&L Breakdown – Show Me the Money
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | ₹249 Cr | ₹305 Cr | ₹587 Cr |
| EBITDA | ₹18 Cr | ₹20 Cr | ₹54 Cr |
| PAT | ₹11 Cr | ₹11 Cr | ₹33 Cr |
| OPM | 7% | 7% | 9.2% |
| NPM | 4.4% | 3.6% | 5.6% |
Margins improving, scale kicking in — FY25 the breakout year. Let’s see if it holds in FY26.
11. Peer Comparison
| Company | CMP | P/E | ROE | Sales (TTM) | PAT |
|---|---|---|---|---|---|
| Servotech | ₹140 | 94x | 19% | ₹587 Cr | ₹33 Cr |
| Waaree Renew | ₹976 | 44x | 25.6% | ₹1597 Cr | ₹97 Cr |
| Genus Power | ₹375 | 39x | 17% | ₹2442 Cr | ₹128 Cr |
| Shilchar Tech | ₹5330 | 42x | 37.5% | ₹623 Cr | ₹55 Cr |
Servotech is the smallest in size and probably the most expensive relative to fundamentals. But it’s got hype and clean-tech karma.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar ’23 | Mar ’24 | Jun ’25 |
|---|---|---|---|
| Promoter | 60.6% | 58.9% | 58.65% |
| FIIs | 9.4% | 2.9% | 3.02% |
| Public | 29.9% | 38.1% | 38.32% |
| Shareholders | 8,183 | 2,03,263 | 2,06,313 |
Key Insights:
- FII outflow is worrying
- Public faith still strong (either that or YouTube influencers are winning)
- Postal ballots and SARFAESI drama keep governance interesting
13. EduInvesting Verdict™
Servotech is a fascinating mix of EV infrastructure, solar push, and clean-tech ambition. Its fundamentals are catching up fast — but not as fast as its valuation. The growth is real, but so is the froth.
Is it a revolution in the making? Possibly.
Is it priced like it’s already succeeded? Definitely.
Watch closely — this one could either supercharge your portfolio or short-circuit it.
Metadata
Written by EduInvesting Research Team | 15 July 2025
Tags: EV Charging, Solar Energy, High Growth, Power Backup, Small Cap, Overvalued?
