Servotech’s Subsidiary Incharz Signs MoU With 3ECO; Here's Why

On Wednesday, during the volatile trading of the stock market, shares of electric vehicle charging infrastructure company Servotech Power System registered a slight weakness and were trading at the level of Rs 42.

The stock of Servotech Power has given investors a bumper return of 3154 percent from the lowest level of Rs 2.52 on 3 September 2021.

Servotech Power has informed the stock market that one of its associate companies, Charge, has got a contract from 3 ECO to develop exclusive EV charging stations for EV cargo fleet. Brand Charge of Servotech EV Infra Private Limited is going to develop exclusive EV charging stations for 3 ECO.

Servotech Power has informed the stock market that 3Eco operates as L3-L5 cargo vehicle and EV cargo fleet operator. Charging stations for the company's e-vehicles are to be developed across the country, which will help in developing charging infrastructure across the country. This charging station is to be built for 3ECO's vehicles in which 200 to 300 electric vehicles can be charged daily. By the end of 2024, 3ECO's cargo vehicle charging target is to reach 100 vehicles per day.

Shares of Servotech Power Systems Limited, which has a market cap of about Rs 1800 crore, have a 52-week high of Rs 107 and a 52-week low of Rs 48. Shares of Servotech Power have been weak for some time, but in the last 1 year, they have given investors a return of 70 percent from the low level of Rs 48.

Recently, Servotech Power Systems declared their Q4 results on 11 May, 2024. The topline increased by 9.63% & the profit decreased by 43.28% YoY. Compared to the previous quarter, the revenue grew by 161.81% and the profit increased by 207.75%.The Selling, general & administrative expenses rose by 15.59% q-o-q & increased by 44.91% Y-o-Y. The operating income was up by 107.19% q-o-q & decreased by 62.85% Y-o-Y. The EPS is Rs 0.16 for Q4 which decreased by 43.79% Y-o-Y.

Earlier, Servotech Power Systems Limited has informed exchanges that its Board of Directors have approved the conversion of 15,00,000 warrants into an equal number of equity shares. It is to be noted that the company had allotted 89,00,000 warrants of the ace value of Re 1 each on January 06, 2024. Now approval has been given to convert 15 lakh warrants into 15 lakh equity shares. These shares have been allotted to non-promoters/public category investors on a preferential basis in exchange for warrants. Servotech Power has stated that 29 lakh warrants of the company are pending for conversion

Servotech Power Systems is into the business of development of tech-enabled EV charging solutions leveraging their over two decades of experience and expertise in the electronics space. It offers an extensive range of AC and DC chargers which are compatible with different EVs and serve multiple applications.