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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Servotech Power Systems Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 10:55 pm

Market Cap 4,193 Cr.
Current Price 188
High / Low205/72.8
Stock P/E348
Book Value 4.21
Dividend Yield0.03 %
ROCE12.3 %
ROE12.7 %
Face Value 1.00
PEG Ratio5.19

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 NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Evans Electric Ltd 86.2 Cr. 314401/14217.8 71.10.96 %36.4 %28.0 % 10.0
Epic Energy Ltd 47.6 Cr. 66.166.1/5.97111 9.350.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 272 Cr. 73.899.8/32.531.5 18.70.00 %23.6 %15.4 % 10.0
Cospower Engineering Ltd 76.2 Cr. 508537/200693 48.10.00 %8.12 %1.54 % 10.0
Continental Controls Ltd 7.21 Cr. 11.718.5/4.80361 3.350.00 %7.82 %14.0 % 10.0
Industry Average20,096.39 Cr713.65162.6669.050.11%16.28%19.86%6.12

All Competitor Stocks of Servotech Power Systems Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales45.5719.9230.5938.2344.9630.3339.1382.4996.1668.1467.1249.65120.79
Expenses42.0217.7628.8236.1842.3728.9937.7876.8187.7561.4261.9746.65115.43
Operating Profit3.552.161.772.052.591.341.355.688.416.725.153.005.36
OPM %7.79%10.84%5.79%5.36%5.76%4.42%3.45%6.89%8.75%9.86%7.67%6.04%4.44%
Other Income-0.060.150.370.00-0.010.031.110.050.260.250.660.190.41
Interest1.110.720.730.470.530.480.630.550.720.931.070.610.61
Depreciation0.360.350.350.360.510.420.730.380.550.650.720.750.86
Profit before tax2.021.241.061.221.540.471.104.807.405.394.021.834.30
Tax %14.85%33.87%26.42%26.23%24.68%25.53%25.45%25.21%21.49%25.05%25.12%40.44%25.81%
Net Profit1.720.820.780.901.160.350.823.595.814.033.011.093.20
EPS in Rs0.090.040.040.050.060.020.040.170.270.190.140.050.15

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2634325181114888686134249306
Expenses2531294773106828182125231285
Operating Profit12348774591820
OPM %6%7%9%8%10%7%8%5%6%6%7%7%
Other Income000021101112
Interest122322233233
Depreciation001111111223
Profit before tax11118641151416
Tax %41%62%46%53%34%28%28%28%20%28%23%27%
Net Profit00015431141111
EPS in Rs0.420.120.200.241.960.220.160.040.050.200.500.52
Dividend Payout %0%0%0%0%0%0%0%0%0%10%24%0%

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:17%
Compounded Profit Growth
10 Years:46%
5 Years:30%
3 Years:115%
TTM:-16%
Stock Price CAGR
10 Years:%
5 Years:177%
3 Years:327%
1 Year:135%
Return on Equity
10 Years:12%
5 Years:10%
3 Years:13%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 2:55 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital1223318181818192122
Reserves32341115181921275970
Borrowings91217212117161925194281
Other Liabilities3511172634242434223186
Total Liabilities16203244608476799887153258
Fixed Assets1447798811122132
CWIP0000000000014
Investments000000000001
Other Assets14172837547567718875132211
Total Assets16203244608476799887153258

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%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters70.26%70.46%69.12%69.12%69.03%60.59%60.60%60.60%60.60%60.60%61.35%59.70%
FIIs0.00%0.00%0.00%0.00%0.00%9.42%9.40%9.42%8.86%4.82%2.45%5.53%
Public29.73%29.54%30.88%30.88%30.97%29.99%29.99%29.97%30.53%34.58%36.19%34.77%
No. of Shareholders6802,9062,9453,1793,2994,2668,18318,89134,33255,5151,49,1291,50,591

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
FaceValue1.002.0010.0010.00
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.)6.557.7324.7821.54
Book Value[Incl.RevalReserv]/Share (Rs.)6.557.7324.7821.54
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) (%)0.003.849.400.00
Dividend Payout Ratio (CP) (%)0.003.226.690.00
Earning Retention Ratio (%)0.0096.1690.600.00
Cash Earning Retention Ratio (%)0.0096.7893.310.00
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 (%)0.0096.1590.590.00
Price / BV (X)11.874.663.690.93
Price / Net Operating Revenue (X)4.761.371.190.42
EarningsYield0.010.020.020.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Servotech Power Systems Ltd as of October 15, 2024 is: ₹186.12

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 October 15, 2024, Servotech Power Systems Ltd is Overvalued by 1.00% compared to the current share price ₹188.00

Intrinsic Value of Servotech Power Systems Ltd as of October 15, 2024 is: ₹310.87

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 October 15, 2024, Servotech Power Systems Ltd is Undervalued by 65.36% compared to the current share price ₹188.00

Last 5 Year EPS CAGR: 67.03%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.17%, which is a positive sign.
  2. The company has shown consistent growth in sales (107.25 cr) and profit (4.92 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.
  3. The company has higher borrowings (24.92) compared to reserves (21.00), which may suggest financial risk.

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: 15.63%)
      • 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: 19.07%)
      • 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: 348 (Industry average Stock P/E: 143.14)
      • 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

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

FAQ

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

The latest fair value of Servotech Power Systems Ltd is ₹186.12.

What is the Market Cap of Servotech Power Systems Ltd?

The Market Cap of Servotech Power Systems Ltd is 4,193 Cr..

What is the current Stock Price of Servotech Power Systems Ltd as on 15 October 2024?

The current stock price of Servotech Power Systems Ltd as on 15 October 2024 is ₹188.

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

In FY 2024, the High / Low of Servotech Power Systems Ltd stocks is 205/72.8.

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

The Stock P/E of Servotech Power Systems Ltd is 348.

What is the Book Value of Servotech Power Systems Ltd?

The Book Value of Servotech Power Systems Ltd is 4.21.

What is the Dividend Yield of Servotech Power Systems Ltd?

The Dividend Yield of Servotech Power Systems Ltd is 0.03 %.

What is the ROCE of Servotech Power Systems Ltd?

The ROCE of Servotech Power Systems Ltd is 12.3 %.

What is the ROE of Servotech Power Systems Ltd?

The ROE of Servotech Power Systems Ltd is 12.7 %.

What is the Face Value of Servotech Power Systems Ltd?

The Face Value of Servotech Power Systems Ltd is 1.00.

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