Stock Market Update: After experiencing a downturn for six consecutive sessions, the Indian stock market has shown signs of recovery today as buying interest resurfaces at lower price levels. This positive shift has particularly benefitted Servotech Power Systems, a small-cap stock that rebounded strongly following early morning losses. During Tuesday’s trading, Servotech Power shares opened at ₹164 on the NSE, hitting an intraday low that triggered buying interest. The stock rallied to an intraday high of ₹178.95 shortly after the market opened, demonstrating a remarkable 7% increase from its earlier low. Market analysts remain optimistic, projecting that Servotech Power’s shares could climb to between ₹200 and ₹210 shortly, driven by recent contract wins.
Reasons Behind the Surge in Servotech Power’s Stock Price
According to Anshul Jain, Head of Research at Lakshimishree Investment and Securities, the recent uptrend in Servotech Power Systems shares can be attributed to a pivotal new order received from the Nashik Municipal Corporation (NMC). This order is significant for the company as it involves installing electric vehicle (EV) charging stations, a segment that has gained substantial interest from investors. Jain added that the momentum behind EV stocks is attracting medium- to long-term investors who see potential in this growing market.
Current Stock Performance of Servotech Power
Technically, Servotech Power’s stock has achieved a fresh breakout at ₹178, setting the stage for further growth. Analysts expect the stock price to reach between ₹200 and ₹210 in the near future. Prospective investors are encouraged to consider purchasing this stock while maintaining a stop loss at ₹165. Additionally, current shareholders are advised to hold on to their shares, following the same stop loss strategy for risk management.
Investment Strategies for Servotech Power
Sumeet Bagadia, Executive Director at Choice Broking, suggests that investors employ a buy-on-dips strategy for Servotech Power. Existing shareholders should maintain this approach, keeping a stop loss at ₹150. New investors can also consider entering the market at current levels while being advised to accumulate more shares during price dips, aiming for a short-term target of ₹200.
Recent Developments at Servotech Power Systems
On Monday, Servotech Power Systems Ltd announced to Indian stock exchanges that it has secured an additional order from the Nashik Municipal Corporation. This order builds on a previous deal where Servotech was tasked with supplying, commissioning, and constructing 20 electric vehicle (EV) charging stations across the Nashik area. Due to the successful and timely execution of this initial order, the NMC entrusted Servotech with a new contract involving an additional 29 EV charging stations, further solidifying the company’s position in the EV market.
Disclaimer: The insights and recommendations provided in this article reflect the opinions of individual analysts or brokerage firms and do not constitute financial advice from our platform. We encourage investors to consult with qualified financial experts before making any investment decisions.
