The shares of this smallcap company locked a 5 percent upper circuit after reporting an increase in net profits by 9,166 percent YoY. In just six months, the shares have delivered a multibagger return of 285 percent to its shareholders.
Price Movemnet:
With a market capitalization of Rs. 8,205 crores, the shares of Shakti Pumps (India) Ltd started Monday’s trading session on a higher note at Rs. 4,096.25, locking a 5 percent upper circuit compared to its previous close of Rs. 3,901.20 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company announced its Q1FY25 results. Quarterly, 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.
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Comparing the same metrics on a YoY basis, the revenue zoomed by around 402 percent from Rs. 113.06 crores in Q1FY24 to Rs. 567.56 crores during Q1FY25. In addition, the net profits magnified by 9,166 percent from Rs. 1 crore to Rs. 92.66 crores during the same period.
Order Book:
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.
Electric Vehicles Segment:
The company incorporated a new subsidiary Shakti EV Mobility in December 2021. The subsidiary is 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.
SPIL Board has approved investments of Rs. 114.3 crores in Shakti EV Mobility, in one or more tranches over 5 years.
Recently the company’s subsidiary has also been granted a patent for their 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.
Future Outlook:
Additionally, the company has been focusing on research and development (R&D) initiatives, with 29 patents filed and 11 patents received, which are expected to enhance the company’s technological capabilities in the future.
Furthermore, the company plans to invest Rs. 250 crores over the next five years in its newly incorporated green subsidiary. Moreover, under the KUSUM scheme, the government has a target to install over 3 million solar pumps, for which the company targets to install 20 to 30 percent of it.
Company Profile:
Headquartered in Pithampur, Shakti Pumps was incorporated in 1995. The company is primarily engaged in the manufacturing of pumps and motors of various kinds. It also offers advanced water pumping solutions to a wide range of applications such as irrigation, horticulture, domestic water supply, and commercial and industrial applications.
Written By Vaibhav Patil
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