Servotech's Patent Breakthrough Sparks Market Interest
Shares of Servotech Renewable Power System, previously known as Servotech Power Systems Ltd., witnessed a significant 3% surge on Tuesday, November 25, climbing to ₹98.50 per share. This upward movement was directly triggered by a major corporate announcement that has generated considerable buzz in the green energy and electric vehicle sectors.
A Landmark Patent for India's EV Ecosystem
The rally was fueled by a regulatory filing in which the company announced that the Indian Patent Office has granted it a patent for a groundbreaking innovation titled "System and Method for Charging an Electric Vehicle." Servotech hails this patented technology as a major advancement for India's EV charging landscape, effectively tackling one of the industry's most stubborn problems: compatibility between different charging standards.
This innovation is particularly crucial as it enables seamless charging of GB/T-based electric vehicles using CCS2 DC fast chargers. While the ecosystem is rapidly shifting towards the CCS2 standard, a substantial number of vehicles, especially in older fleets, continue to rely on GB/T charging technology. This creates a significant infrastructure gap that Servotech's device aims to bridge.
From Successful Trials to Wider Deployment
According to the company, the patented device functions as an intelligent converter. When connected to a CCS2 charger, it allows GB/T vehicles to charge safely, quickly, and efficiently. The system's practicality has already been validated through successful trials conducted on select GB/T-enabled EV buses and commercial EV cabs, where it demonstrated excellent performance and reliability.
Buoyed by these positive results, Servotech is now actively exploring wider deployment opportunities. The company is targeting partnerships with fleet operators, public transport networks, and commercial charging hubs to integrate this solution across the country.
Arun Handa, Chief Technical Officer of Servotech Renewable Power System Ltd., commented on this achievement, stating, "Being awarded this patent is a proud moment for Servotech. It reflects our deep-rooted focus on solving real industry challenges with practical, scalable innovations."
Stock Performance: A Tale of Two Timelines
Despite the recent positive news, the stock has been under significant pressure since June, experiencing a brutal sell-off. The shares have crashed 43% from their recent highs, with the current month alone seeing a decline of 20.75%. This has contributed to a staggering year-to-date decline of 42.5%.
If this downward trend continues in the coming weeks, it will mark the stock's first yearly drop since 2019 and its most substantial calendar-year fall in five years. However, it is essential to view this short-term weakness in the context of an extraordinary long-term bull run. Over the last five years, the stock is still higher by an impressive 4,109%. Between 2020 and 2024, it enjoyed a sustained rally, closing each of those calendar years in the green and delivering a monumental return of 22,420%.
