Solar Pump stock engaged in the manufacturing and selling of a wide range of pumps, motors, spare parts, and EV components, in focus upon declaring a bonus issue of 5:1.
Price Action
With a market capitalization of Rs.8,654 Crores, the shares of Shakti Pumps (India) Limited were trading at Rs. 4,319 per equity share, down 4.69 percent from its previous day’s close price of Rs. 4,531.45.
What Happened
The Board of Directors of Shakti Pumps (India) Limited has considered and recommended issuing bonus shares of the company in the ratio of 5:1, where 5 equity shares of the company with a face value of Rs. 10 will be issued to every one equity share held by the eligible shareholders as on the record date.
The Pre-bonus issue paid-up share capital as of date is 2,00,35,100 equity shares of Rs. 10 each aggregating ~ Rs. 20 Crores and the Post-bonus issue paid-up share capital will be 12,02,10,600 equity shares of Rs. 10 each aggregating to Rs. 120.21 Crores. A securities premium of Rs. 100.17 Crores is required for implementing the Bonus Issue.
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. It holds a dominant position with more than 30 percent market Share in the domestic solar Pump Market under the PM KUSUM scheme. As of June 30, 2024, it has a strong order book of ~Rs. 2,000 Crores
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 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 also been recently 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
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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