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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Servotech Power Systems Ltd

About the Company - Servotech Power Systems Ltd

Servotech Power Systems Ltd. is a Public Limited Listed company incorporated on 24/09/2004 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L31200DL2004PLC129379 and registration number is 129379. Currently Company is involved in the business activities of Manufacture of display components (plasma, polymer, lcd, led). Company’s Total Operating Revenue is Rs. 133.70 Cr. and Equity Capital is Rs. 18.67 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - General806, 8th Floor, Crown Heights, Hotel Crown Plaza, Sector-10, New Delhi Delhi 110085investor.relations@servotechindia.com
http://www.servotech.in
Management
NamePosition Held
Mr. Raman BhatiaManaging Director
Ms. Sarika BhatiaWhole Time Director
Mr. Rajesh Mohan RaiWhole Time Director
Mr. Anupam GuptaIndependent Director
Mr. Sampat RaiIndependent Director
Mr. Meenakshisundaram KolandaivelIndependent Director

Servotech Power Systems Ltd. Share Price Update

Share PriceValue
Today₹93.15
Previous Day₹93.25

Basic Stock Data of Servotech Power Systems Ltd

Market Cap 2,074 Cr.
Current Price 97.6
High / Low109/16.5
Stock P/E149
Book Value 4.15
Dividend Yield0.04 %
ROCE17.7 %
ROE16.8 %
Face Value 1.00

Data Source: screener.in

Competitors of Servotech Power Systems Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Schneider Electric Infrastructure Ltd 13,295 Cr. 556643/14661.1 9.230.00 %27.6 %1,195 % 2.00
Salzer Electronics Ltd 1,046 Cr. 602610/23626.1 2450.37 %12.0 %9.70 % 10.0
Websol Energy System Ltd 1,768 Cr. 419485/62.355.7 46.60.00 %11.2 %11.1 % 10.0
Urja Global Ltd 1,222 Cr. 23.341.8/6.00495 3.300.00 %1.55 %0.89 % 1.00
V-Guard Industries Ltd 13,565 Cr. 312335/23868.5 37.90.42 %14.5 %12.0 % 1.00
Industry Average5.8 Cr382.46141.2868.410.16%13.37%6.94%4.8

Servotech Power Systems Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales24.8545.5719.9230.5938.2344.9630.3339.1382.4996.1668.1467.1249.65
Expenses23.4642.0217.7628.8236.1842.3728.9937.7876.8187.7561.4261.9746.65
Operating Profit1.393.552.161.772.052.591.341.355.688.416.725.153.00
OPM %5.59%7.79%10.84%5.79%5.36%5.76%4.42%3.45%6.89%8.75%9.86%7.67%6.04%
Other Income0.19-0.060.150.370.00-0.010.031.110.050.260.250.660.19
Interest0.191.110.720.730.470.530.480.630.550.720.931.070.61
Depreciation0.420.360.350.350.360.510.420.730.380.550.650.720.75
Profit before tax0.972.021.241.061.221.540.471.104.807.405.394.021.83
Tax %12.37%14.85%33.87%26.42%26.23%24.68%25.53%25.45%25.21%21.49%25.05%25.12%40.44%
Net Profit0.861.720.820.780.901.160.350.823.595.814.033.011.09
EPS in Rs0.050.090.040.040.050.060.020.040.170.270.190.140.05

Servotech Power Systems Ltd Quarterly Chart

Servotech Power Systems Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales212634325181114888686134249311
Expenses202531294773106828182125231288
Operating Profit112348774591823
OPM %5%6%7%9%8%10%7%8%5%6%6%7%7%
Other Income0000021101114
Interest1122322233233
Depreciation0001111111222
Profit before tax111118641151422
Tax %-30%41%62%46%53%34%28%28%28%20%28%23%
Net Profit100015431141116
EPS in Rs1.040.420.120.200.241.960.220.160.040.050.200.500.77
Dividend Payout %0%0%0%0%0%0%0%0%0%0%10%24%

Servotech Power Systems Ltd Profit & Loss Yearly Chart

Servotech Power Systems Ltd Growth

Compounded Sales Growth
10 Years:25%
5 Years:17%
3 Years:43%
TTM:43%
Compounded Profit Growth
10 Years:41%
5 Years:22%
3 Years:130%
TTM:134%
Stock Price CAGR
10 Years:%
5 Years:118%
3 Years:274%
1 Year:382%
Return on Equity
10 Years:11%
5 Years:9%
3 Years:11%
Last Year:17%

Servotech Power Systems Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital11223318181818192121
Reserves232341115181921275967
Borrowings191217212117161925194247
Other Liabilities83511172634242434223124
Total Liabilities1216203244608476799887153159
Fixed Assets11447798811122121
CWIP0000000000000
Investments0000000000000
Other Assets1114172837547567718875132138
Total Assets1216203244608476799887153159

Servotech Power Systems Ltd Reserves and Borrowings Chart

Servotech Power Systems Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 0-1-1-229-613113-27
Cash from Investing Activity 00-2-0-3-7-4-0-20-8-12
Cash from Financing Activity 01231012-4-1-1-145
Net Cash Flow00-01-022-30047

Servotech Power Systems Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days631057920213112414016518417174115
Inventory Days1118210013613778556348753826
Days Payable1725352151134106989291533029
Cash Conversion Cycle2134126187134969613614219283112
Working Capital Days36138116182121789214515718676101
ROCE %26%18%16%15%16%31%18%13%7%7%12%18%

Servotech Power Systems Ltd Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

Servotech Power Systems Ltd ROCE Trend

Servotech Power Systems Ltd EPS Trend

Servotech Power Systems Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21
FaceValue2.0010.0010.00
Basic EPS (Rs.)1.042.150.51
Diluted EPS (Rs.)1.112.210.51
Cash EPS (Rs.)1.243.021.30
Book Value[Excl.RevalReserv]/Share (Rs.)7.7324.7821.54
Book Value[Incl.RevalReserv]/Share (Rs.)7.7324.7821.54
Revenue From Operations / Share (Rs.)26.1976.9447.51
PBDIT / Share (Rs.)1.785.183.14
PBIT / Share (Rs.)1.584.332.34
PBT / Share (Rs.)1.362.990.62
Net Profit / Share (Rs.)1.042.170.50
NP After MI And SOA / Share (Rs.)1.042.090.50
PBDIT Margin (%)6.806.726.60
PBIT Margin (%)6.035.634.91
PBT Margin (%)5.183.891.32
Net Profit Margin (%)3.972.821.05
NP After MI And SOA Margin (%)3.972.711.05
Return on Networth / Equity (%)13.468.412.32
Return on Capital Employeed (%)18.3314.046.95
Return On Assets (%)6.634.350.93
Long Term Debt / Equity (X)0.090.140.17
Total Debt / Equity (X)0.510.410.63
Asset Turnover Ratio (%)2.171.440.00
Current Ratio (X)1.711.741.79
Quick Ratio (X)1.431.311.38
Inventory Turnover Ratio (X)13.668.200.00
Dividend Payout Ratio (NP) (%)3.849.400.00
Dividend Payout Ratio (CP) (%)3.226.690.00
Earning Retention Ratio (%)96.1690.600.00
Cash Earning Retention Ratio (%)96.7893.310.00
Interest Coverage Ratio (X)7.953.951.98
Interest Coverage Ratio (Post Tax) (X)5.642.681.40
Enterprise Value (Cr.)408.83182.0158.66
EV / Net Operating Revenue (X)1.471.270.67
EV / EBITDA (X)21.5818.8310.21
MarketCap / Net Operating Revenue (X)1.371.190.42
Retention Ratios (%)96.1590.590.00
Price / BV (X)4.663.690.93
Price / Net Operating Revenue (X)1.371.190.42
EarningsYield0.020.020.02

Servotech Power Systems Ltd Profitability Ratios (%)

Servotech Power Systems Ltd Liquidity Ratios

Servotech Power Systems Ltd Liquidity Ratios (%)

Servotech Power Systems Ltd Interest Coverage Ratios (X)

Servotech Power Systems Ltd Valuation Ratios

Fair Value / Intrinsic Value of Servotech Power Systems Ltd

Fair Value: ₹103.92

The stock is undervalued by 6.48% compared to the current price ₹97.6

*Investments are subject to market risks

Strength and Weakness of Servotech Power Systems Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 16.42%, which is a positive sign.
  2. The company has shown consistent growth in sales (101.00 cr) and profit (5.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 119.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 120.00, which may not be favorable.
  3. The company has higher borrowings (20.46) compared to reserves (19.31), which may suggest financial risk.

Should I Buy Servotech Power Systems Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Servotech Power Systems Ltd:
    1. Net Profit Margin: 3.97%
      • 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: 18.33% (Industry Average ROCE: 8.34%)
      • 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. Interest Coverage Ratio (Post Tax): 5.64
      • 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.
    4. Quick Ratio: 1.43
      • 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.
    5. ✗ Stock P/E: 149 (Industry average Stock P/E: 71.16)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

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