Small cap pumps and motors stock jumped 2 percent after receiving a patent for inventing a Grinder Pump Assembly with Adjustable Impeller for 20 years.
With a market capitalization of Rs. 1,863 cr, the shares of Shakti Pumps Ltd started their trading session at the Rs. 1,024 level. The stock hit an intraday of Rs. 1034 making a gain of around 2 percent and closed the day at Rs. 1034 apiece.
Such a bullish sentiment was observed in the stock after the company in an exchange filing mentioned that it had received a patent for inventing a Grinder Pump Assembly with an Adjustable Impeller for 20 years, commencing from the date of filing.
In October, the company received 2 patents for stack assembly for permanent magnet rotors and ADA conversion based contractorless softstarters for 20 years.
Digging into the financials of the company, revenue was at Rs. 113.06 cr during Q2 FY23, and Profit After Tax (PAT) was 1 cr keeping the timeframe same.
Coming to the important ratios of the company, the return on equity drastically declined from 17.67 percent during FY21-22 to 5.95 percent in FY 22-23. In addition to this, the return on capital employed decreased from 21.37 percent to 10.4 percent during the same period.
The company has given a multibagger return to its investors. In just a timeframe of 6 months, the stock has given a whopping 133 percent returns and more than 150 percent returns on a YTD basis.
For example, if someone had invested Rs. 1 lakh in the company’s shares since the beginning of the year then the worth of those shares would be 2.5 lakhs now.
According to the latest shareholding pattern, Promoters have 56.22 percent of the stake in the company, the Public or Retail Investors have 42.95 percent of holdings, FIIs have 0.64 percent shares in the company, and the remaining 0.2 1 percent is with DIIs.
Shakti Pumps India Limited is a manufacturer and has expertise in submersible pumps for domestic, industrial, horticultural and agricultural use. The company has branches in the UAE, USA and exports its products to more than 100 countries.
Written by Vaibhav patil
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