Servotech Share Price Target 2025: Growth & Analysis

Servotech Power Systems has stunned investors with its stunning 2515% share price growth over the past three years. The share price of the company is trading at ₹85.50 with a market cap of ₹1,884.58 crores. Investors are eager to look into the share price target of Servotech in 2025.

The company’s decision to change its name to Servotech Renewable Power System reflects its core shift to renewable power. Its performance rings loud and clear with spectacular returns of 180.52% in the last one year. The revenue growth projection indicates the increase from ₹240.24 crores in FY23 to ₹305.70 crores in FY24.

The support provided to renewable power by the government has inspired experts to predict share price targets of ₹140.45 to ₹207.83 by 2025.

Let us move to the core reasons behind Servotech growth potential and examine various price target possibilities in 2025.

Current Technical Analysis of Servotech Share Price

The technical analysis advises caution on the share price of Servotech trading at ₹129.90. The stock is oversold with an RSI of 38.1, and the MACD reflects bearish momentum at -6.24.

Support and Resistance Levels for Q1 2024

The stock has two significant support levels – ₹124.07 and a lower support level at ₹119.89. The resistance is at ₹134.35 and ₹140.45. Fibonacci pivot points reflect strong resistance at ₹133.28, while the Camarilla pivot reflects immediate support at ₹127.30.

The price movement reflects the trend of lower highs and lower lows. The recent highs have reached ₹142.18 on February 5 and ₹148.77 on January 31. The 50-day Simple Moving Average at ₹139.9 is an important overhead resistance.

Volume Analysis and Trading Patterns

Volume analysis set the trading activity, with average daily volume at 1.1 million shares. The stock maintained its delivery percentage between 60.90% daily and 52.70% weekly, reflecting strong institutional interest.

Bearish continuation patterns are observed in the candlestick pattern. The CCI is -157.12, reflecting oversold levels. The ADX reading of 21.28 reflects a developing trend strength, and the Williams %R at -92.77 reflects the price may be exhausted.

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Key Financial Metrics Driving Growth

Revenue Growth: 28% YoY Increase

The company continues to maintain strong revenue growth with a 142.1% growth in 9M FY25. Revenue grew to ₹52,934.0 lacs from ₹21,861.0 lacs in 9M FY24. The growth is attributed to growing businesses in EV charging and solar energy.

Profit Margins and Operating Efficiency

Servotech’s profits grew 728% to ₹918.94 lacs in Q3 FY25. The operating margin ratio grew 43.46% this financial year. The net profit margin grew to 5% in 9M FY25 from 4.5% last period.

Order Book Analysis: Rs 250 Cr Worth Projects

The order book now reflects strong business activity:

Oil marketing companies booked 4,700 units of EV chargers worth ₹333 crores.
IOCL booked ₹111 crores worth of 1,400 DC fast EV chargers.
The company will commission all chargers by the end of FY 2024-25.

The company’s financial health appears strong with a good inventory turnover ratio of 10.65X. A return on capital employed of 12.56% reflects the company efficiently uses its invested capital to generate profits.

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EV Infrastructure Market Opportunities

Servotech is favorably positioned in India’s EV charging sector as it can manufacture many products. The new factory of the company can manufacture 24,000 power modules per year. They will ramp up production to 2.4 lakh power modules to cater to the increasing market demand.

Government EV Policy Impact on Revenue

The government has planned 30% vehicles to be electric by 2030, and it is generating huge opportunities in the market. Servotech has invested ₹300 crores in establishing an EV charger manufacturing unit in Uttar Pradesh. The investment is in line with the state’s Electric Vehicle Manufacturing and Mobility Policy 2022.

Strategic Partnerships with OMCs

The company has robust relationships in the energy segment: IOCL has awarded ₹111 crores worth of contracts for 1,400 DC fast EV chargers. Oil marketing companies enabled the installation of over 2,400 EV chargers. The company is now operational in over 21 Indian states through strategic installations.

Market Share in EV Charging Segment

Servotech dominated the charging market by March 2023 with 60% market share in residential charging and 25% in public charging. The company will install 5,000 EV charging stations across the nation. Their partnership with UK-based Ensmart Power enables them to access international markets.

The company’s emphasis on local manufacturing enhances its position in EV charging infrastructure. Servotech reflects its growth orientation with proof-of-concept locations at 10 strategic locations in North India. Each charging station involves an investment of ₹15 to ₹25 lakhs, reflecting the company’s emphasis on expanding infrastructure.

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Risk-Adjusted Price Targets for 2025

Based on the largest market analysis and technical indicators, Servotech’s share price reflects clear trends across market conditions. The stock fluctuates between ₹129.90 and ₹142.18, providing a solid foundation for future estimates.

Base Case Scenario: ₹180-200

Technical analysis indicates a prime target of ₹180-200 by 2025. The consistent patterns of trading for the stock and volume analysis warrant this estimate. Key support at ₹130.17 helps develop this range. The 50-day moving average at ₹139.9 functions as a mid-point resistance point.

Bull Case: Possibility to hit Rs 250

There are multiple reasons that lead to the bull case estimate with a target of ₹250. The Fibonacci projection levels confirm strong chances of breaching resistance at ₹229.01. The good performance of the stock with returns of 1033.86% in three years favors this bullish perspective.

Bear Case: Support Levels at Rs 140

The bear case estimate finds considerable support at ₹140, followed by another at ₹125.18. The Fibonacci retracement levels show prime support areas at:

₹123.89 (61.8% level)
₹139.45 (50% level)
₹155.01 (38.2% level)

The recent patterns of trading show high institutional interest with a daily delivery percentage of 60.90%. The risk-adjusted targets account for the company’s P/E ratio of 105.46 and Price/Book ratio of 20.16. These figures provide potential for the changes in valuation under different market scenarios.

Conclusion

Servotech Power Systems stands at a strategic point as it shifts focus towards renewable energy and EV infrastructure. The company’s 315.3% increase in revenue for Q3 FY25 and ₹333 crores order book in hand affirm its robust market prospects.

Technical analysis points towards an even outlook in 2025. Base case targets are at ₹180-200. The bull case scenario foresees prices up to ₹250 with good support at ₹140. The company’s 60% market share domination in residential charging segments strengthens its position. Servotech’s power module manufacturing capacity will rise to 2.4 lakh.

Investors must monitor a few risk factors closely. The present RSI indicates oversold levels, and MACD’s bearish signals must be monitored. Servotech’s high P/E ratio of 105.46 must be monitored closely. The company’s association with oil marketing companies and its presence in more than 21 Indian states indicate good growth opportunities.

Government support in the form of EV policies, proposed infrastructure spending, and Servotech’s manufacturing capacity create long-term value opportunities. Short-term stock price action may fluctuate, but the company’s emphasis on renewable energy infrastructure is in line with India’s growing clean energy needs.

FAQs

Q1. What is Servotech share price target in 2025?

According to expert estimates, the base case for Servotech share price target in 2025 is ₹180-200. But in a strong market, the price can reach ₹250.

Q2. Is Servotech a good long-term bet?

Servotech is a good long-term bet because of its entry into renewable energy and EV charging businesses, robust government support, and robust revenue growth. But investors must monitor market trends, financials, and the company’s high P/E ratio before investing.

Q3. What are the key drivers of Servotech growth?

Servotech’s growth primarily comes from its transition towards renewable energy, huge revenue growth (315.3% in Q3 FY25), robust order book of ₹333 crores, and its huge market share in the EV charging business, particularly in residential charging (60% market share).

Q4. Where is Servotech positioned in the EV charging infrastructure space?

Servotech has positioned itself well in the EV charging infrastructure space with a target to produce 2.4 lakh power modules annually. The company has secured orders from major oil marketing companies, has installed over 2,400 EV chargers, and is aiming to install 5,000 charging stations in the country.

Q5. What are the share price risks of Servotech?

Some of the potential risks include current technical indicators showing oversold levels, bearish MACD signals, and a high P/E ratio of 105.46. Additionally, market volatility and changes in government policies on renewable energy and EV adoption may impact the company’s performance and share price.