The solar pump market in India is experiencing significant growth, driven by government initiatives and increasing demand for sustainable agricultural practices.
The Indian government has set ambitious targets under the PM KUSUM scheme, aiming to install millions of solar-powered pumps to enhance irrigation and reduce dependency on conventional power sources.
Listed below are such solar pump stocks with PE less than the Industry:
Kirloskar Brothers Ltd
With a market capitalization of Rs. 13,925 crores, the shares of Kirloskar Brothers started Friday’s trading session on a higher note at Rs. 1,751.55 compared to its previous close of Rs. 1,747.45.
During the trading session, the shares hit a high of Rs. 1,820, gaining around 3 percent and closed the day at Rs. 1,805 apiece.
Looking at the company’s financial performance, the revenue decreased by around 16 percent from Rs. 1,224 crores during the March quarter to Rs. 1,031 crores in the June quarter. On the other hand, the net profits declined by around 57 percent from Rs. 153 crores to Rs. 66 crores during the same timeframe.
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In terms of key financial metrics, the company reported a Return on Equity (RoE) of 20.25 percent and a return on capital employed (RoCE) of 26.03 percent for the period spanning FY23-24.
Moreover, the stock might be deemed undervalued, given its PE ratio of 41.1 times, in contrast to the industry average of 45 times.
The company holds an order book valued at Rs. 1,956 crores and has received 19 patents out of 24 applications, including 2 valid patents in the USA.
WPIL Ltd
With a market capitalization of Rs. 4,429 crores, the shares of WPIL started Friday’s trading session on a flatter note at Rs. 455.70 compared to its previous close of Rs. 453.70.
During the trading session, the shares hit a low of Rs. 450, losing around 1 percent and closed the day at Rs. 451 apiece.
Looking at the company’s financial performance, the revenue decreased by 38 percent from Rs. 591 crores in the March quarter to Rs. 363 crores during the June quarter. On the other hand, the net profits declined by around 35 percent from Rs. 66 crores to Rs. 43 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 38.12 percent and a return on capital employed (RoCE) of 18.32 percent for the period spanning FY23-24.
Moreover, the stock might be deemed undervalued, given its PE ratio of 25.9 times, in contrast to the industry average of 45 times.
The company’s Product division revenues remained steady year-over-year at Rs. 550 crores, while the order book increased by 15 percent to Rs. 400 crores, providing strong revenue visibility and a positive outlook for FY25.
Additionally, the international order book rose to Rs. 484 crores, reflecting a favourable outlook across all segments.
Shakti Pumps (India) Ltd
With a market capitalization of Rs. 8,635 crores, the shares of Shakti Pumps started Friday’s trading session on a higher note at Rs. 4,360 compared to its previous close of Rs. 4,323.95. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 4,540.10 apiece.
Looking at the company’s financial performance, the revenue decreased by around 7 percent from Rs. 609.28 crores during the March quarter to Rs. 567.56 crores in the June quarter. Contrastingly, the net profits jumped by 3 percent from Rs. 89.64 crores to Rs. 92.66 crores during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18.75 percent and a return on capital employed (RoCE) of 27.35 percent for the period spanning FY23-24.
Moreover, the stock might be deemed undervalued, given its PE ratio of 37 times, in contrast to the industry average of 45 times.
As of June 30, 2024, the company had an order book of Rs. 2,000 crores. Out of which majority of the orders were received from the Maharashtra State Electricity Distribution Company Limited (MSEDCL) and Maharashtra Energy Department Agency (MEDA).
The remaining orders were received from the Haryana Renewable Energy Department (HAREDA), Department of Agriculture, Uttar Pradesh, Rajasthan Horticulture Development Society (RHDS), Ajmer Vidyut Vitran Nigam Limited and others.
The PM-KUSUM scheme has proven to be highly beneficial for Shakti Pumps (India) Ltd, enhancing its business prospects and supporting its role in the renewable energy sector. Additionally, the company is the biggest beneficiary under the PM KUSUM scheme and holds a 25 percent market share in the scheme.
The company has been focusing on research and development (R&D) initiatives, with 29 patents filed and 14 patents received, which are expected to enhance the company’s technological capabilities in the future.
Written By Vaibhav Patil
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