Shares of Servotech Power Systems surged by 4.99% in Monday’s intraday trade, touching ₹169.41 on the NSE. This sharp rise followed the announcement of a major order for grid-connected agriculture pumps under the Kusum Component C-1 Scheme from the Uttar Pradesh New and Renewable Energy Development Authority (UPNEDA).
The project, valued at approximately ₹31 crore, will involve manufacturing, supplying, installing, testing, and commissioning grid-connected agriculture pumps, complete with solar power plants.
This project will deploy 1,100 grid-connected solar-powered pumps across Uttar Pradesh. It includes pumps ranging from 2 HP to 5 HP paired with solar power plants with capacities of 3 kW, 4.5 kW, and 7.5 kW. Servotech will also provide comprehensive warranty maintenance for the pumps for five years.
The initiative aligns with Uttar Pradesh’s renewable energy goals and underscores a step toward “solarising” agriculture in the region. By powering farms with renewable energy, the project contributes to sustainable development and reduces reliance on traditional energy sources.
Servotech’s financial performance has been a key driver of investor interest. For the September quarter of FY 2024-25, the company reported a consolidated net profit of ₹11.24 crore, more than triple its profit of ₹3.12 crore in the same quarter last year.
This growth was fueled by a significant rise in income, which surged to ₹200.06 crore compared to ₹86.59 crore in the corresponding quarter of the previous fiscal. For the April-September period, the company’s net profit nearly doubled to ₹15.73 crore, demonstrating consistent financial strength.
Beyond agriculture pumps, Servotech Power Systems is recognised for its diverse portfolio of renewable and energy-efficient solutions. The company manufactures a wide range of products, including:
This latest project further cements Servotech’s role as a key contributor to India’s renewable energy mission.
Servotech’s stock performance today reflects the market’s optimism about its growth prospects. Securing a ₹31 crore order from a government body like UPNEDA positions the company as a reliable player in renewable energy projects. Coupled with its strong financial results, Servotech is emerging as a promising investment for those interested in the green energy sector.
With the agriculture pump project, Servotech Power Systems is setting a benchmark in renewable energy deployment in India. Investors and stakeholders will watch closely as the company progresses toward sustainable energy solutions and robust financial growth.
On December 30, 2024, Servotech Power Systems share price witnessed strong trading activity after announcing its major project win. The stock opened at ₹162.25 and reached a high of ₹169.41 during the day, with a low of ₹162.25. It marked a 5.00% increase from the previous close of ₹161.35, trading at ₹169.41 by 12:59 PM. The stock’s 52-week range stands between ₹73.50 and ₹205.40. Robust trading volumes of over 23.9 lakh shares highlighted significant investor confidence in the company’s growth potential.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 30, 2024, 3:52 PM IST
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