Want to see IN:SERVOTECH full AI Analyst Report?
Top Page
Servotech Power Systems Ltd.
(SERVOTECH)
Select Model
Select Model
Rating:48Neutral
Price Target:
₹81.00
▲(3.51% Upside)
Action:Reiterated
Date:07/31/26
The score is held back primarily by weak cash flow/negative free cash flow and the sharp increase in leverage in 2026 despite strong growth. Technically, the stock is in a downtrend versus major moving averages, while valuation is also demanding (high P/E) with minimal dividend support.
Positive Factors
Product Diversification
A broad product mix across UPS, inverters, solar solutions and EV chargers reduces reliance on any single end market and supports multiple revenue streams (product sales, installations, service/AMCs). Structurally this aligns the company with long-term trends in electrification, renewables and EV infrastructure adoption, improving resilience and opportunities for cross-selling over the next several years.
Negative Factors
Weak Cash Conversion
Repeated negative operating cash flow and a sharply negative free cash flow profile indicate earnings are not reliably converting to cash. Over 2-6 months this structural weakness increases funding dependence, constrains internal reinvestment, and raises the risk that growth requires continued external financing until working-capital or margin improvements restore cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Product Diversification
A broad product mix across UPS, inverters, solar solutions and EV chargers reduces reliance on any single end market and supports multiple revenue streams (product sales, installations, service/AMCs). Structurally this aligns the company with long-term trends in electrification, renewables and EV infrastructure adoption, improving resilience and opportunities for cross-selling over the next several years.
Read all positive factors
Servotech Power Systems Ltd. (SERVOTECH) vs. iShares MSCI India ETF (INDA)
Market Cap
₹19.31B
Dividend Yield0.06%
Average Volume (3M)740.88K
Price to Earnings (P/E)51.7
Beta (1Y)1.71
Revenue Growth7.40%
EPS Growth14.85%
CountryIN
Employees463
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)1.48
Shares Outstanding224,845,350
10 Day Avg. Volume874,694
30 Day Avg. Volume740,876
Financial Highlights & Ratios
PEG Ratio20.35
Price to Book (P/B)4.87
Price to Sales (P/S)2.09
P/FCF Ratio-11.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Servotech Power Systems Ltd. Business Overview & Revenue Model
Company Description
Servotech Renewable Power System Limited manufactures and sells light-emitting diode (LED) lights, electric vehicle (EV) chargers, and solar power products in India and internationally. The company offers LED lighting products, including LED tube ...
How the Company Makes Money
Servotech primarily makes money by selling power and energy products and associated solutions to customers, generating revenue from (1) product sales of power-backup and power-conditioning equipment (e.g., UPS systems, inverters, stabilizers and r...
Servotech Power Systems Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
28
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.72B | 6.74B | 3.54B | 2.78B | 1.44B |
| Gross Profit | 1.12B | 889.85M | 568.54M | 481.44M | 185.69M |
| EBITDA | 672.18M | 579.38M | 223.93M | 190.94M | 89.69M |
| Net Income | 335.55M | 327.35M | 117.62M | 110.41M | 40.38M |
Balance Sheet | |||||
| Total Assets | 6.85B | 4.10B | 2.77B | 1.67B | 894.01M |
| Cash, Cash Equivalents and Short-Term Investments | 707.13M | 425.43M | 664.25M | 171.73M | 79.56M |
| Total Debt | 2.11B | 751.36M | 759.75M | 435.73M | 213.45M |
| Total Liabilities | 3.89B | 1.72B | 1.34B | 845.70M | 431.24M |
| Stockholders Equity | 2.88B | 2.37B | 1.42B | 820.91M | 462.70M |
Cash Flow | |||||
| Free Cash Flow | -1.17B | -807.98M | -253.76M | -372.60M | 48.93M |
| Operating Cash Flow | -140.70M | -626.76M | 7.92M | -242.77M | 75.06M |
| Investing Cash Flow | -1.14B | -163.10M | -259.80M | -128.77M | -24.02M |
| Financing Cash Flow | 1.56B | 478.36M | 753.89M | 454.51M | -5.42M |
Servotech Power Systems Ltd. Technical Analysis
Negative
78.25
Price Trends
98.41
Negative
89.99
Negative
89.22
Negative
Market Momentum
-3.25
Positive
37.92
Neutral
26.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SERVOTECH, the sentiment is Negative. The current price of 78.25 is below the 20-day moving average (MA) of 94.75, below the 50-day MA of 98.41, and below the 200-day MA of 89.22, indicating a bearish trend. The MACD of -3.25 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 26.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SERVOTECH.
Servotech Power Systems Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹100.40B | 31.66 | ― | 1.09% | 17.84% | -2.60% | |
60 Neutral | ₹21.38B | 23.49 | ― | 0.24% | 6.52% | -2.94% | |
58 Neutral | ₹28.51B | 23.76 | ― | 1.39% | 19.57% | -10.14% | |
56 Neutral | ₹45.94B | 102.08 | ― | 0.13% | 52.45% | 21.14% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹21.99B | -7.59 | ― | ― | 32.75% | -138.18% | |
48 Neutral | ₹19.31B | 51.73 | ― | 0.06% | 7.40% | 14.85% |
* General Sector Average
IN:SERVOTECH
Servotech Power Systems Ltd.
87.51
-45.52
-34.22%
IN:BBL
Bharat Bijlee Limited
2,391.40
-421.91
-15.00%
IN:EXICOM
Exicom Tele-Systems Ltd.
165.60
15.85
10.58%
IN:HIRECT
Hind Rectifiers Limited
1,321.55
331.76
33.52%
IN:HPL
HPL Electric & Power Limited
335.90
-257.32
-43.38%
IN:VOLTAMP
Voltamp Transformers Limited
9,884.10
1,491.62
17.77%
Servotech Power Systems Ltd. Corporate Events
Servotech Closes Trading Window Ahead of June-Quarter Results
Jun 26, 2026
Servotech Renewable Power System Limited has announced the closure of its trading window for dealing in company shares, in compliance with the Securities and Exchange Board of India’s Prohibition of Insider Trading Regulations, 2015 and its ...
Servotech Wins 1,415 kW Rooftop Solar Order from South Central Railway
May 6, 2026
Servotech Renewable Power System Limited has won a domestic contract from South Central Railway’s Vijayawada Division to execute a 1,415 kW grid-connected rooftop solar project. The mandate covers design, engineering, supply, installation, t...
Servotech Wins 1.4 MW Solar Rooftop Order from South Central Railway
May 6, 2026
Servotech Renewable Power System Ltd. has secured a 1,415 kW grid-connected rooftop solar project from the South Central Railway’s Vijayawada Division, reinforcing its role in public-sector renewable energy deployments. The contract covers d...
Servotech Publishes FY26 Audited Results Extracts in Newspapers
May 3, 2026
Servotech Renewable Power System Limited has reported that extracts of its audited standalone and consolidated financial results for the quarter and financial year ended 31 March 2026 have been published in national newspapers. The company has als...
Servotech Renewable Posts Record Q4 FY26 on Strong Shift to High-Margin Renewable, EV Segments
May 1, 2026
Servotech Renewable Power System Ltd., a leading Indian manufacturer of solar solutions, BESS, and EV chargers, has been sharpening its focus on higher-margin renewable and EV businesses while expanding manufacturing capacity. This strategic shift...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.