Servotech Power Systems Emerges as a Multibagger Stock in Indian Market

Shares of Servotech Power Systems have been one of the top-performing small-cap stocks in the Indian stock market in 2023. The stock has delivered an impressive 430% return in year-to-date (YTD) and a staggering 1,350% return to its positional investors in the past year. Despite these remarkable gains, it seems that there is still potential for further growth in this multibagger stock.

Servotech Power Systems started the day with a strong upside momentum, reaching an intraday high of ₹171.65 on the National Stock Exchange (NSE). It hit the 5% upper circuit within minutes of the market opening, marking the second consecutive session of hitting the upper circuit.

The stock’s uptrend can be attributed to its Q1FY24 results, which were announced recently. The company reported a total revenue of ₹68.4 crore in Q1FY24, a significant increase from ₹30.35 crore in the same quarter of the previous year. This translates to a 93.50% YoY growth in total revenue. The small-cap company also witnessed a substantial rise in profits, with a profit of ₹4.03 crore in Q1FY24 compared to ₹0.35 crore in the corresponding period last year, representing a 1,050% YoY increase.

Servotech Power Systems’ revenue from operations during April to June 2023 stood at ₹68.14 crore, a 125% increase from ₹30.32 crore in the same period of the previous year.

Over the past month, the stock has delivered a 4.5% return, and in the YTD timeframe, it has witnessed a remarkable rise from ₹32.40 to ₹171.65 per share, representing a 430% increase. In the past six months, the stock has surged from ₹40.20 to ₹171.65 per share, recording an appreciation of nearly 325%.

Servotech Power Systems is currently traded only on the NSE, with a market capitalization of approximately ₹1,825 crore. The stock has a 52-week high of ₹179.90 per share and a 52-week low of ₹140.65 per share.

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