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Last Updated on: 10 March, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Servotech Power Systems Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: March 8, 2025, 10:53 am

Market Cap 2,824 Cr.
Current Price 127
High / Low 205/73.5
Stock P/E102
Book Value 7.34
Dividend Yield0.04 %
ROCE10.9 %
ROE10.4 %
Face Value 1.00
PEG Ratio1.13

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Servotech Power Systems Ltd

Competitors of Servotech Power Systems Ltd

Stock Name Market Cap Current Price High / Low Stock P/E Book Value Dividend Yield ROCE ROE Face Value
Modern Insulators Ltd 537 Cr. 114 176/79.713.4 95.00.00 %9.06 %8.87 % 10.0
Modison Ltd 455 Cr. 140 233/95.221.0 63.51.78 %12.4 %8.88 % 1.00
Evans Electric Ltd 78.3 Cr. 143 252/10627.7 37.21.05 %36.4 %28.0 % 10.0
Epic Energy Ltd 33.9 Cr. 47.0 148/5.9737.3 10.00.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 146 Cr. 50.0 99.8/39.014.6 32.10.00 %23.5 %15.4 % 10.0
Industry Average8,959.07N/A102.31N/AN/A15.1117.85N/A

All Competitor Stocks of Servotech Power Systems Ltd

Quarterly Result

MetricDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Sales 38.2344.9630.3339.1382.4996.1668.1467.1249.65120.7997.51182.34181.32
Expenses 36.1842.3728.9937.7876.8187.7561.4261.9746.65115.4389.06163.43164.87
Operating Profit 2.052.591.341.355.688.416.725.153.005.368.4518.9116.45
OPM % 5.36%5.76%4.42%3.45%6.89%8.75%9.86%7.67%6.04%4.44%8.67%10.37%9.07%
Other Income 0.00-0.010.031.110.050.260.250.660.190.410.250.410.53
Interest 0.470.530.480.630.550.720.931.070.610.611.432.482.38
Depreciation 0.360.510.420.730.380.550.650.720.750.860.961.471.50
Profit before tax 1.221.540.471.104.807.405.394.021.834.306.3115.3713.10
Tax % 26.23%24.68%25.53%25.45%25.21%21.49%25.05%25.12%40.44%25.81%24.72%26.02%36.56%
Net Profit 0.901.160.350.823.595.814.033.011.093.204.7411.388.30
EPS in Rs 0.050.060.020.040.170.270.190.140.050.150.210.510.37

Last Updated: February 28, 2025, 5:16 pm

Below is a detailed analysis of the quarterly data for Servotech Power Systems Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

  • For Sales, as of Dec 2024, the value is ₹181.32 Cr.. The value appears to be declining and may need further review. It has decreased from 182.34 Cr. (Sep 2024) to ₹181.32 Cr., marking a decrease of 1.02 Cr..
  • For Expenses, as of Dec 2024, the value is ₹164.87 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 163.43 Cr. (Sep 2024) to ₹164.87 Cr., marking an increase of ₹1.44 Cr..
  • For Operating Profit, as of Dec 2024, the value is ₹16.45 Cr.. The value appears to be declining and may need further review. It has decreased from 18.91 Cr. (Sep 2024) to ₹16.45 Cr., marking a decrease of 2.46 Cr..
  • For OPM %, as of Dec 2024, the value is 9.07%. The value appears to be declining and may need further review. It has decreased from 10.37% (Sep 2024) to 9.07%, marking a decrease of 1.30%.
  • For Other Income, as of Dec 2024, the value is ₹0.53 Cr.. The value appears strong and on an upward trend. It has increased from 0.41 Cr. (Sep 2024) to ₹0.53 Cr., marking an increase of ₹0.12 Cr..
  • For Interest, as of Dec 2024, the value is ₹2.38 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 2.48 Cr. (Sep 2024) to ₹2.38 Cr., marking a decrease of 0.10 Cr..
  • For Depreciation, as of Dec 2024, the value is ₹1.50 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 1.47 Cr. (Sep 2024) to ₹1.50 Cr., marking an increase of ₹0.03 Cr..
  • For Profit before tax, as of Dec 2024, the value is ₹13.10 Cr.. The value appears to be declining and may need further review. It has decreased from 15.37 Cr. (Sep 2024) to ₹13.10 Cr., marking a decrease of 2.27 Cr..
  • For Tax %, as of Dec 2024, the value is 36.56%. The value appears to be increasing, which may not be favorable. It has increased from 26.02% (Sep 2024) to 36.56%, marking an increase of 10.54%.
  • For Net Profit, as of Dec 2024, the value is ₹8.30 Cr.. The value appears to be declining and may need further review. It has decreased from 11.38 Cr. (Sep 2024) to ₹8.30 Cr., marking a decrease of 3.08 Cr..
  • For EPS in Rs, as of Dec 2024, the value is 0.37. The value appears to be declining and may need further review. It has decreased from ₹0.51 (Sep 2024) to 0.37, marking a decrease of ₹0.14.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 7, 2025, 6:55 pm

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 2634325181114888686134249305582
Expenses 2531294773106828182125231285533
Operating Profit 1234877459182049
OPM % 6%7%9%8%10%7%8%5%6%6%7%7%8%
Other Income 0000211011022
Interest 1223222332237
Depreciation 0011111112235
Profit before tax 1111864115141639
Tax % 41%62%46%53%34%28%28%28%20%28%23%27%
Net Profit 0001543114111128
EPS in Rs 0.420.120.200.241.960.220.160.040.050.200.500.521.24
Dividend Payout % 0%0%0%0%0%0%0%0%0%10%24%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)400.00%-20.00%-25.00%-66.67%0.00%300.00%175.00%0.00%
Change in YoY Net Profit Growth (%)0.00%-420.00%-5.00%-41.67%66.67%300.00%-125.00%-175.00%

Servotech Power Systems Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:25%
5 Years:28%
3 Years:52%
TTM:107%
Compounded Profit Growth
10 Years:46%
5 Years:30%
3 Years:115%
TTM:98%
Stock Price CAGR
10 Years:%
5 Years:151%
3 Years:135%
1 Year:47%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:12%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:48 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 0.7822331818181819212222
Reserves 323411151819212760107141
Borrowings 9121721211716192519428173
Other Liabilities 351117263424243422304975
Total Liabilities 16203244608476799887153258312
Fixed Assets 144779881112213253
CWIP 00000000000140
Investments 0000000000012
Other Assets 14172837547567718875132211257
Total Assets 16203244608476799887153258312

Below is a detailed analysis of the balance sheet data for Servotech Power Systems Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2024, the value is ₹22.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded ₹22.00 Cr..
  • For Reserves, as of Sep 2024, the value is ₹141.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹107.00 Cr. (Mar 2024) to ₹141.00 Cr., marking an increase of 34.00 Cr..
  • For Borrowings, as of Sep 2024, the value is ₹73.00 Cr.. The value appears to be improving (decreasing). Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has decreased from ₹81.00 Cr. (Mar 2024) to ₹73.00 Cr., marking a decrease of 8.00 Cr..
  • For Other Liabilities, as of Sep 2024, the value is ₹75.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹49.00 Cr. (Mar 2024) to ₹75.00 Cr., marking an increase of 26.00 Cr..
  • For Total Liabilities, as of Sep 2024, the value is ₹312.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹258.00 Cr. (Mar 2024) to ₹312.00 Cr., marking an increase of 54.00 Cr..
  • For Fixed Assets, as of Sep 2024, the value is ₹53.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹32.00 Cr. (Mar 2024) to ₹53.00 Cr., marking an increase of 21.00 Cr..
  • For CWIP, as of Sep 2024, the value is ₹0.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹14.00 Cr. (Mar 2024) to ₹0.00 Cr., marking a decrease of 14.00 Cr..
  • For Investments, as of Sep 2024, the value is ₹2.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹1.00 Cr. (Mar 2024) to ₹2.00 Cr., marking an increase of 1.00 Cr..
  • For Other Assets, as of Sep 2024, the value is ₹257.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹211.00 Cr. (Mar 2024) to ₹257.00 Cr., marking an increase of 46.00 Cr..
  • For Total Assets, as of Sep 2024, the value is ₹312.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹258.00 Cr. (Mar 2024) to ₹312.00 Cr., marking an increase of 54.00 Cr..

Notably, the Reserves (₹141.00 Cr.) exceed the Borrowings (73.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1-1-229-613113-27-1
Cash from Investing Activity +-0-2-0-3-7-4-0-20-8-11-25
Cash from Financing Activity +1231012-4-1-1-14571
Net Cash Flow0-01-022-3004745

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-8.00-10.00-14.00-17.00-13.00-10.00-9.00-15.00-20.00-10.00-24.00-61.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days105792021311241401651841717411596
Inventory Days821001361377855634875382649
Days Payable535215113410698929153302942
Cash Conversion Cycle134126187134969613614219283112103
Working Capital Days138116182121789214515718676101112
ROCE %18%16%15%16%31%18%13%7%7%12%17%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters70.46%69.12%69.12%69.03%60.59%60.60%60.60%60.60%60.60%61.35%59.70%59.34%
FIIs0.00%0.00%0.00%0.00%9.42%9.40%9.42%8.86%4.82%2.45%5.53%5.95%
Public29.54%30.88%30.88%30.97%29.99%29.99%29.97%30.53%34.58%36.19%34.77%34.71%
No. of Shareholders2,9062,9453,1793,2994,2668,18318,89134,33255,5151,49,1291,50,5911,83,797

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21
FaceValue 1.002.0010.0010.00
Basic EPS (Rs.) 0.541.042.150.51
Diluted EPS (Rs.) 0.551.112.210.51
Cash EPS (Rs.) 0.681.243.021.30
Book Value[Excl.RevalReserv]/Share (Rs.) 6.547.7324.7821.54
Book Value[Incl.RevalReserv]/Share (Rs.) 6.547.7324.7821.54
Revenue From Operations / Share (Rs.) 16.3126.1976.9447.51
PBDIT / Share (Rs.) 1.031.785.183.14
PBIT / Share (Rs.) 0.891.584.332.34
PBT / Share (Rs.) 0.741.362.990.62
Net Profit / Share (Rs.) 0.541.042.170.50
NP After MI And SOA / Share (Rs.) 0.541.042.090.50
PBDIT Margin (%) 6.326.806.726.60
PBIT Margin (%) 5.466.035.634.91
PBT Margin (%) 4.575.183.891.32
Net Profit Margin (%) 3.333.972.821.05
NP After MI And SOA Margin (%) 3.323.972.711.05
Return on Networth / Equity (%) 8.2913.468.412.32
Return on Capital Employeed (%) 11.8718.3314.046.95
Return On Assets (%) 4.256.634.350.93
Long Term Debt / Equity (X) 0.090.090.140.17
Total Debt / Equity (X) 0.510.510.410.63
Asset Turnover Ratio (%) 1.602.171.440.00
Current Ratio (X) 1.881.711.741.79
Quick Ratio (X) 1.541.431.311.38
Inventory Turnover Ratio (X) 10.1013.668.200.00
Dividend Payout Ratio (NP) (%) 36.153.849.400.00
Dividend Payout Ratio (CP) (%) 28.733.226.690.00
Earning Retention Ratio (%) 63.8596.1690.600.00
Cash Earning Retention Ratio (%) 71.2796.7893.310.00
Interest Coverage Ratio (X) 7.087.953.951.98
Interest Coverage Ratio (Post Tax) (X) 4.745.642.681.40
Enterprise Value (Cr.) 1689.75408.83182.0158.66
EV / Net Operating Revenue (X) 4.781.471.270.67
EV / EBITDA (X) 75.5521.5818.8310.21
MarketCap / Net Operating Revenue (X) 4.761.371.190.42
Retention Ratios (%) 63.8496.1590.590.00
Price / BV (X) 11.874.663.690.93
Price / Net Operating Revenue (X) 4.761.371.190.42
EarningsYield 0.010.020.020.02

After reviewing the key financial ratios for Servotech Power Systems Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 1.00. This value is within the healthy range. It has decreased from 2.00 (Mar 23) to 1.00, marking a decrease of 1.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 0.54. This value is below the healthy minimum of 5. It has decreased from 1.04 (Mar 23) to 0.54, marking a decrease of 0.50.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 0.55. This value is below the healthy minimum of 5. It has decreased from 1.11 (Mar 23) to 0.55, marking a decrease of 0.56.
  • For Cash EPS (Rs.), as of Mar 24, the value is 0.68. This value is below the healthy minimum of 3. It has decreased from 1.24 (Mar 23) to 0.68, marking a decrease of 0.56.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 6.54. It has decreased from 7.73 (Mar 23) to 6.54, marking a decrease of 1.19.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 6.54. It has decreased from 7.73 (Mar 23) to 6.54, marking a decrease of 1.19.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 16.31. It has decreased from 26.19 (Mar 23) to 16.31, marking a decrease of 9.88.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 1.03. This value is below the healthy minimum of 2. It has decreased from 1.78 (Mar 23) to 1.03, marking a decrease of 0.75.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 0.89. This value is within the healthy range. It has decreased from 1.58 (Mar 23) to 0.89, marking a decrease of 0.69.
  • For PBT / Share (Rs.), as of Mar 24, the value is 0.74. This value is within the healthy range. It has decreased from 1.36 (Mar 23) to 0.74, marking a decrease of 0.62.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 0.54. This value is below the healthy minimum of 2. It has decreased from 1.04 (Mar 23) to 0.54, marking a decrease of 0.50.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 0.54. This value is below the healthy minimum of 2. It has decreased from 1.04 (Mar 23) to 0.54, marking a decrease of 0.50.
  • For PBDIT Margin (%), as of Mar 24, the value is 6.32. This value is below the healthy minimum of 10. It has decreased from 6.80 (Mar 23) to 6.32, marking a decrease of 0.48.
  • For PBIT Margin (%), as of Mar 24, the value is 5.46. This value is below the healthy minimum of 10. It has decreased from 6.03 (Mar 23) to 5.46, marking a decrease of 0.57.
  • For PBT Margin (%), as of Mar 24, the value is 4.57. This value is below the healthy minimum of 10. It has decreased from 5.18 (Mar 23) to 4.57, marking a decrease of 0.61.
  • For Net Profit Margin (%), as of Mar 24, the value is 3.33. This value is below the healthy minimum of 5. It has decreased from 3.97 (Mar 23) to 3.33, marking a decrease of 0.64.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 3.32. This value is below the healthy minimum of 8. It has decreased from 3.97 (Mar 23) to 3.32, marking a decrease of 0.65.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 8.29. This value is below the healthy minimum of 15. It has decreased from 13.46 (Mar 23) to 8.29, marking a decrease of 5.17.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 11.87. This value is within the healthy range. It has decreased from 18.33 (Mar 23) to 11.87, marking a decrease of 6.46.
  • For Return On Assets (%), as of Mar 24, the value is 4.25. This value is below the healthy minimum of 5. It has decreased from 6.63 (Mar 23) to 4.25, marking a decrease of 2.38.
  • For Long Term Debt / Equity (X), as of Mar 24, the value is 0.09. This value is below the healthy minimum of 0.2. There is no change compared to the previous period (Mar 23) which recorded 0.09.
  • For Total Debt / Equity (X), as of Mar 24, the value is 0.51. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 0.51.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 1.60. It has decreased from 2.17 (Mar 23) to 1.60, marking a decrease of 0.57.
  • For Current Ratio (X), as of Mar 24, the value is 1.88. This value is within the healthy range. It has increased from 1.71 (Mar 23) to 1.88, marking an increase of 0.17.
  • For Quick Ratio (X), as of Mar 24, the value is 1.54. This value is within the healthy range. It has increased from 1.43 (Mar 23) to 1.54, marking an increase of 0.11.
  • For Inventory Turnover Ratio (X), as of Mar 24, the value is 10.10. This value exceeds the healthy maximum of 8. It has decreased from 13.66 (Mar 23) to 10.10, marking a decrease of 3.56.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 36.15. This value is within the healthy range. It has increased from 3.84 (Mar 23) to 36.15, marking an increase of 32.31.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 28.73. This value is within the healthy range. It has increased from 3.22 (Mar 23) to 28.73, marking an increase of 25.51.
  • For Earning Retention Ratio (%), as of Mar 24, the value is 63.85. This value is within the healthy range. It has decreased from 96.16 (Mar 23) to 63.85, marking a decrease of 32.31.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 71.27. This value exceeds the healthy maximum of 70. It has decreased from 96.78 (Mar 23) to 71.27, marking a decrease of 25.51.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 7.08. This value is within the healthy range. It has decreased from 7.95 (Mar 23) to 7.08, marking a decrease of 0.87.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 4.74. This value is within the healthy range. It has decreased from 5.64 (Mar 23) to 4.74, marking a decrease of 0.90.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 1,689.75. It has increased from 408.83 (Mar 23) to 1,689.75, marking an increase of 1,280.92.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 4.78. This value exceeds the healthy maximum of 3. It has increased from 1.47 (Mar 23) to 4.78, marking an increase of 3.31.
  • For EV / EBITDA (X), as of Mar 24, the value is 75.55. This value exceeds the healthy maximum of 15. It has increased from 21.58 (Mar 23) to 75.55, marking an increase of 53.97.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 4.76. This value exceeds the healthy maximum of 3. It has increased from 1.37 (Mar 23) to 4.76, marking an increase of 3.39.
  • For Retention Ratios (%), as of Mar 24, the value is 63.84. This value is within the healthy range. It has decreased from 96.15 (Mar 23) to 63.84, marking a decrease of 32.31.
  • For Price / BV (X), as of Mar 24, the value is 11.87. This value exceeds the healthy maximum of 3. It has increased from 4.66 (Mar 23) to 11.87, marking an increase of 7.21.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 4.76. This value exceeds the healthy maximum of 3. It has increased from 1.37 (Mar 23) to 4.76, marking an increase of 3.39.
  • For EarningsYield, as of Mar 24, the value is 0.01. This value is below the healthy minimum of 5. It has decreased from 0.02 (Mar 23) to 0.01, marking a decrease of 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Servotech Power Systems Ltd as of March 10, 2025 is: ₹62.32

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of March 10, 2025, Servotech Power Systems Ltd is Overvalued by 50.93% compared to the current share price 127.00

Intrinsic Value of Servotech Power Systems Ltd as of March 10, 2025 is: 118.45

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of March 10, 2025, Servotech Power Systems Ltd is Overvalued by 6.73% compared to the current share price 127.00

Last 5 Year EPS CAGR: 90.06%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.08%, which is a positive sign.
  2. The company has higher reserves (33.15 cr) compared to borrowings (28.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (143.69 cr) and profit (7.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 125.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 128.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Servotech Power Systems Ltd:
    1. Net Profit Margin: 3.33%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.87% (Industry Average ROCE: 15.11%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 8.29% (Industry Average ROE: 17.85%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.74
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.54
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 102 (Industry average Stock P/E: 102.31)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.51
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

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FAQ

What is the latest intrinsic value of Servotech Power Systems Ltd?

The latest intrinsic value of Servotech Power Systems Ltd as on 09 March 2025 is ₹62.32, which is 50.93% lower than the current market price of 127.00, indicating the stock is overvalued by 50.93%. The intrinsic value of Servotech Power Systems Ltd is calculated using PE ratio method. The stock has a market capitalization of ₹2,824 Cr. and recorded a high/low of ₹205/73.5 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹141 Cr and total liabilities of ₹312 Cr.

What is the Market Cap of Servotech Power Systems Ltd?

The Market Cap of Servotech Power Systems Ltd is 2,824 Cr..

What is the current Stock Price of Servotech Power Systems Ltd as on 09 March 2025?

The current stock price of Servotech Power Systems Ltd as on 09 March 2025 is ₹127.

What is the High / Low of Servotech Power Systems Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Servotech Power Systems Ltd stocks is ₹205/73.5.

What is the Stock P/E of Servotech Power Systems Ltd?

The Stock P/E of Servotech Power Systems Ltd is 102.

What is the Book Value of Servotech Power Systems Ltd?

The Book Value of Servotech Power Systems Ltd is 7.34.

What is the Dividend Yield of Servotech Power Systems Ltd?

The Dividend Yield of Servotech Power Systems Ltd is 0.04 %.

What is the ROCE of Servotech Power Systems Ltd?

The ROCE of Servotech Power Systems Ltd is 10.9 %.

What is the ROE of Servotech Power Systems Ltd?

The ROE of Servotech Power Systems Ltd is 10.4 %.

What is the Face Value of Servotech Power Systems Ltd?

The Face Value of Servotech Power Systems Ltd is 1.00.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Servotech Power Systems Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE