Check Before You Invest : Servotech Renewable Power System Ltd

Snapshot

Q.1 Which industry/sub-sector does Servotech Renewable Power System Ltd belong to?

Servotech Renewable Power System Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Servotech Renewable Power System Ltd a good quality company?

Servotech Renewable Power System Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Servotech Renewable Power System Ltd undervalued or overvalued?

Servotech Renewable Power System Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Servotech Renewable Power System Ltd a good buy now?

Servotech Renewable Power System Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd revenue growth is 92.1% for FY-2025, which is above its 5-year CAGR of 46.36%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Return on capital employed is 21.23% for FY-2025, which is above its 5-year historical median of 11.6%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Return on Asset is 10.42%, which is above its 5-year historical median of 5.51%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Return on equity is 23.99% for FY-2025, which is above its 5-year historical median of 13.21%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Cash conversion cycle is 73 days, below its 5-year historical median of 85 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.83	1.62
ROE	23.99	13.21
ROCE	21.23	11.6
Cash Conversion Cycle	73 days	85 days

Q.6 Gross Profit margin of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.7% for FY-2025, which is above its 5-year median of 6.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.81% for FY-2025, which is above its 5-year median of 6.62% indicating increasing margins.

Q.8 Net Profit Margin of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Net Profit Margin is 5.7% for FY-2025, is above with its 5-year median of 3.71%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.7	6.1
Operating Profit Margin	9.81	6.62
Net Profit Margin	5.7	3.71

Q.9 Debt to Equity ratio of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Debt-to-Equity ratio is 0.40, which is lower with the industry average of 0.51, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Servotech Renewable Power System Ltd?

Servotech Renewable Power System Ltd Debt to cash flow from operations is -1.47, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Servotech Renewable Power System Ltd?

Promoters hold 58.61% of the Servotech Renewable Power System Ltd, with 4.24% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Servotech Renewable Power System Ltd vs industry peers?

Servotech Renewable Power System Ltd revenue CAGR is 46.36%, compared to the industry median CAGR of 16.95%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	92.1	17
Gross Profit Growth	168.4	27.6
Operating Profit Growth	185	NAN
Net Profit Growth	200	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.83	1.06
ROE	23.99	10.12
ROCE	21.23	13.84
Cash Conversion Cycle (days)	72.96	104

Valuation & price assessment

Q.1 Stock return of Servotech Renewable Power System Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 36.54% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	36.5%	19.4%	-22.1%

Q.3 Valuation ratios of Servotech Renewable Power System Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	59.13	103.37	37.99
Price to Book	8.69	12.90	3.99
Price to Sales	3.37	4.64	2.75
EV to EBITDA	30.67	49.65	18.70

Check more companies

1. Schneider Ele. Infra

2. Emmvee Photovoltaic

3. TD Power Systems

4. Inox Wind

5. V-Guard Inds.

6. Atlanta Electricals

7. Voltamp Transformers

8. Quality Power Elect.

9. Transformers & Rect

10. Genus Power Infra

Check trending companies

1. Honasa Consumer Ltd.

2. Colgate-Palmolive (India) Ltd.

3. Godrej Consumer Products Ltd.

4. Emami Ltd.

5. Dabur India Ltd.