Check Before You Invest : Servotech Renewable Power System Ltd

Q: 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: 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 multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Servotech Renewable Power System Ltd undervalued or overvalued?

Servotech Renewable Power System Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 58.65, Historic Median: 102.82. Price to Book, Current: 8.27, Historic Median: 12.52. Price to Sales, Current: 3.34, Historic Median: 4.60. EV to EBITDA, Current: 30.44, Historic Median: 48.90

Q: 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

Q: 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: 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: 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: 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 its 5-year median of 3.71%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 8.7, Historic Median: 6.1. Operating Profit Margin (%), Current: 9.81, Historic Median: 6.62. Net Profit Margin (%), Current: 5.7, Historic Median: 3.71

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

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

Servotech Renewable Power System Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	58.65	102.82
Price to Book	8.27	12.52
Price to Sales	3.34	4.60
EV to EBITDA	30.44	48.90

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 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 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	1.83	1.62
ROE (%)	23.99	13.21
ROCE (%)	21.23	11.6
Cash Conversion Cycle	73 days	85 days

C: How much debt does the business have and is it at a sustainable level?

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 above the industry average of 0.29, indicating higher 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

D: Promoter shareholding and pledge status of Servotech Renewable Power System Ltd?

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)

E: How does Servotech Renewable Power System Ltd performance compare with that of its Peers?

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 13.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	92.1	13
Gross Profit Growth (%)	168.4	27.9
Operating Profit Growth (%)	185	28.4
Net Profit Growth (%)	200	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.83	1.06
ROE (%)	23.99	9.8
ROCE (%)	21.23	13.55
Cash Conversion Cycle (days)	72.96	99

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 35.26% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	35.3%	0.3%	-24.3%

Q.2 Valuation ratios of Servotech Renewable Power System Ltd vs historical?

The current P/E ratio of 58.65 is lower than its historical median of 102.82, indicating that the stock is trading below its historical average valuation.

Q.3 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	58.65	102.82	38.08
Price to Book	8.27	12.52	3.97
Price to Sales	3.34	4.60	2.75
EV to EBITDA	30.44	48.90	18.75

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Check Before You Invest : Servotech Renewable Power System Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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