115% Returns In 12 Months: Anand Rathi Sees 17% Upside In THIS Energy Stock, TP At Rs 185/Share; BUY?

Servotech Renewable Power Systems Ltd has caught the attention with Anand Rathi Investment Services identifying it as the "Pick of the Month" for December 2024. With the stock currently trading at around Rs 162, the brokerage has set a short-term target price of Rs 185, representing an upside potential of 17%.

The Delhi-based green energy solutions provider, specializing in solar products and EV chargers, has been a star performer in 2024, delivering multibagger returns. Over the past year, Servotech's stock has surged by 115%, doubling investors' wealth. Notably, the stock has also delivered an 80% return in just six months.

On Thursday, Servotech's stock opened higher at Rs 163.95 on the National Stock Exchange (NSE), compared to its previous close of Rs 161.81. The share price hit an intraday high of Rs 164.75 before settling near the Rs 162 mark.

While the stock has corrected significantly from its 52-week high of Rs 205.40, reached in September 2024, analysts believe that the worst of the selling pressure is behind it. The stock has dropped 22.5% from its peak.

Anand Rathi Research has identified key technical indicators that signal a potential trend reversal for Servotech. According to their analysis, the stock is approaching a crucial support level at Rs 160, which aligns with its breakout zone. The Relative Strength Indicator (RSI) has recovered from oversold levels, indicating a stabilization in selling pressure.

Anand Rathi recommends buying Servotech shares in the price range of Rs 152 to Rs 163, with a stop-loss at Rs 141. The brokerage has set a target price of Rs 185, citing an attractive risk-reward ratio for investors.

They also advise monitoring the stock for confirmation of strength near the support level before making an entry.

Servotech's correction from its peak, coupled with easing selling pressure, makes it an attractive short-term investment. The company's robust fundamentals and its strategic focus on renewable energy and EV infrastructure have positioned it as a key player in India's green energy transition.

Recently, Servotech underwent a rebranding, changing its name from Servotech Power Systems to Servotech Renewable Power Systems.

Servotech's performance is underpinned by its history in power conditioning products and its growing portfolio of solar and EV solutions. The stock's rally over the past year reflects its increasing market share and investor confidence in its growth potential.

As of 2:40 pm on Thursday, Servotech shares were trading with mild gains of 0.20% at Rs 162.09 per share on the NSE. Despite the recent correction, the stock remains a preferred choice among analysts for its solid fundamentals and technical indicators signalling potential upside.