While stock markets, both Nifty and Sensex, continued to reel under losses for the third consecutive session on Tuesday, shares of Servotech Renewable Power Systems defied the trend with a sharp rally, jumping 19% to hit a three-month high of Rs 147 apiece.
What’s Driving Investor Optimism in Servotech?
The surge in Servotech’s stock appears to be linked to the high-profile visit of Errol Musk—father of Elon Musk, CEO of Tesla and SpaceX—who arrived in India on June 1 for a five-day strategic tour. Musk senior is part of Servotech’s global advisory board and is expected to play a key role in bolstering the company’s clean energy and electric vehicle (EV) charging ambitions.
Speaking exclusively to Business Today, Errol Musk said, “I’m here at the invitation of progressive electrical engineering company (Servotech). As an electrical engineer myself, I find their work incredibly important—they’re focusing on new and improved ways to store and charge green electricity, and how to efficiently transmit and conserve it…This market—energy storage and transmission—is expected to grow tenfold over the next five years, especially in India.”
Strategic Role in Clean Energy Push
Servotech Power Systems Ltd., is known for its solar power products, EV charging infrastructure, and power backup solutions. In May, the company announced that Errol Musk would be central to its global expansion strategy, aligned with its Vision 2027—a roadmap to position Servotech as a global player in renewable energy and EV technologies.
According to the company, Musk’s international exposure and strategic insights are expected to bring added value to boardroom decisions, policymaker engagement, and investor outreach as Servotech scales its clean energy operations.
Adding to investor confidence, Servotech recently posted a robust Q4 performance. Net profit for the quarter ending March more than doubled to ₹7.71 crore, driven by strong revenue growth. In April, the company also secured a ₹15-crore contract from the Indian Railways to install a 4.1 MW on-grid solar power system, reinforcing its credentials in the public sector segment.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.