Shares of this multibagger small-cap stock associated with compressors, pumps & diesel engines hit the 20 percent upper circuit after the company received an order worth Rs 1,603 crores from Maharashtra State Electricity Distribution Company Limited (MSEDCL).
With a market capitalization of Rs 2,037.16 crores, the stocks of Shakti Pumps (India) Limited started their trading session on Thursday at Rs 951.85 and currently are locked in the 20 percent upper circuit recorded at Rs 1108.35 apiece. The locked price is also marked as the company’s fresh 52-week high price.
Such sharp movements in stock prices were witnessed after the company, through a regulatory filing with the BSE today, intimated that it has received an order from Maharashtra State Electricity Distribution Company Limited (MSEDCL) worth Rs 1,603 crores.
The order, to be executed over 24 months, pertains to 50,000 off-grid solar photovoltaic water pumping systems (SPWPS) pumps for the entire state of Maharashtra under the “Component-B of PM-KUSUM“scheme (Phase-III).
Keeping a purview of six months, the company’s stock has delivered multibagger returns of 154 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.54 lakhs.
During the recent financial years, the company has observed a setback in numbers as far as the operating revenues and net profits are concerned. The operating revenues of the company fell from Rs 1,178.54 crores during FY21-22 to Rs 967.68 crores during FY22-23, and, the net profits, keeping the timeframe the same, declined from Rs 64.82 crores to Rs 24.13 crores.
As a result of the above, the company’s profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE) decreased with the former reducing from 17.67 percent during FY21-22 to 5.95 percent during FY22-23, and, the latter, during the same period, taking a downshift from 21.37 percent to 10.4 percent.
According to the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 56.22 percent stake, and the Foreign Institutional Investors (FIIs), increasing their stake, hold a 0.64 percent stake in the company.
Deriving a majority of revenue from domestic operations within India, Shakti Pumps (India) Limited is a company based in India that is engaged in the manufacturing process of pumps and motors. The company offers products that are applied in various sectors such as pressure boosting, irrigation, hospitality, etc.
Written by Amit Madnani
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