On Tuesday the share price of the small-cap company rose by 4.6% to its intraday high of ₹1,119.9 per share from its previous close of ₹1,070.2 per share after the company planned to raise funds through QIP.
According to the exchange filing, Shakti Pumps India Ltd announced on Monday that its board of directors will meet on January 18, 2024, to discuss raising capital through the issuance of eligible securities.
The company states that qualified institution placement (QIP), private placement, and preferential allotment are among the other acceptable methods of raising capital.
Shakti Pumps has also requested that the board “consider and approve the revised terms of reference of the Treasury Committee to enable it to undertake certain acts in relation to the proposed fundraising as permitted by applicable law.”
On January 10, 2024, Shakti Pumps India Ltd secured its tenth patent for inventing “A Surface Helical Pump Construction With Collinear Flow,” a revolutionary design that solves a key issue in RO systems inconsistent water flow during blockages.
The “Surface Helical Pump Construction with Collinear Flow” maintains consistent flow even in the presence of blockages, increasing efficiency, lowering maintenance costs, and providing a cost-effective solution.
Looking at the company’s financials, their net revenue decreased by 29% year over year, from ₹216.32 crore in Q2FY23 to ₹152.78 crore in Q2FY24. Their revenue rose by 35% sequentially from ₹113.06 crore in Q1FY24 to the current levels.
Furthermore, the company’s net profit increased by 208% year on year, from ₹1.90 crores in Q2FY23 to ₹5.86 crores in Q2FY24. Their quarterly profit increased by 486% from ₹1 crore in Q1FY24 to current levels.
Shakti Pumps India Limited is a small-cap company with a market capitalization of ₹1,990 Crores and a debt-to-equity ratio of 0.18. It also has a three-year average Return on Equity of 16% and a dividend yield of 0.49%.
The share price of the company has risen by 82% in the last six months and 167 % in the last year. For instance, if an investor invested ₹1 Lakh a year ago the current value would be ₹2.67 Lakhs.
The promoter owns 56.2 % of the company, 43 % of the general public, 0.5 % of foreign institutional investors, and 0.3 % of domestic institutional investors.
Shakti Pumps (India) Ltd primarily manufactures various types of pumps and motors. It also offers advanced water pumping solutions for a wide range of applications such as irrigation, horticulture, domestic water supply, commercial and industrial.
Written by Sriram KV
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