Small Cap stock engaged in the manufacturing and selling of a wide range of pumps, motors, spare parts, and EV components, in focus upon receiving a work order worth Rs. 558.16 Crores, for the supply of solar pumps.
Price Action
With a market capitalization of Rs. 9,407 Crores, the shares of Shakti Pumps (India) Limited hit a 5 percent upper circuit at Rs. 4,695.45, from its previous day’s close price of Rs. 4,471.90.
What Happened
Shakti Pumps (India) Limited has received a new Letter of Intent from the Department of Agriculture, Uttar Pradesh for the supply, Installation, and commissioning of 12,537 solar water pumping systems for the entire state of Uttar Pradesh under Component-B of PM-KUSUM scheme (Phase-III) for a consideration of Rs. 558.16 Crores and it is to be executed within 31st March 2025 in pleased manners as prescribed.
About the Company
Shakti Pumps (India) Limited is engaged in the manufacturing and selling of a wide range of pumps, motors, and spare parts. Its products include submersible pumps, pressure booster pumps, open well pumps, and many more with solar-powered pumps being its core business driver.
Shakti Pumps (India) Limited has a pan-India presence with 500+ dealers, 1200+ product variants, and 400+ service centers. As of June 30, 2024, it has a strong order book of ~Rs. 2,000 Crores
Shakti Pumps (India) Limited Holds a dominant position with more than 30 percent market Share in the domestic solar Pump Market under the PM KUSUM scheme.
It has a global presence and its geographical revenue mix is as follows, Middle East 44 percent, the United States 30 percent, Africa 15 percent, Asia 7 percent, and 4 percent rest of the world.
Venture into EV
Shakti Pumps (India) Limited has also entered into Electric Vehicle segments through its wholly-owned subsidiary Shakti EV Mobility engaged in the manufacturing and sale of EV
motors, charging stations, battery management systems, electric control panels, smart electric control panels, VFDs, and other items
It has recently been granted a patent for its ground-breaking invention of “Stack Assembly for Permanent Magnet Rotor”. This innovation is a significant advancement that promises to revolutionize the performance and efficiency of electric vehicles
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Financials and Ratios
Its revenue from operations grew by 402 percent from Rs. 113 Crores in Q1FY24 to Rs. 568 Crores in Q1FY25, accompanied by profits of Rs. 1 Crores to Rs. 93 Crores.
In terms of Return ratios, it has delivered a return on equity(ROE) of 24.2 percent and a return on capital employed (ROCE) of 31.4 percent. It has maintained a debt-to-equity ratio of 0.11.
Written by: Bharath K.S
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