This small-cap stock engaged in the manufacturing of a variety of pumps and motors, providing advanced water pumping solutions for irrigation, horticulture, domestic supply, and commercial and industrial applications, in focus after securing an order worth Rs. 24 crore from Maharashtra Energy Department Agency (MEDA) to supply 877 solar photovoltaic water pumping systems (SPWPS) across Maharashtra.
Stock Price Movement:
With a market capitalization of Rs. 9,235.18 crores, the shares of Shakti Pumps (India) Limited hit a 5 lower circuit of Rs. 768.10 per share on Monday, down from its previous closing price of Rs. 808.50 per share.
Since then, the stock has retreated and is currently trading at Rs. 768.25 per equity share. Over the last year, the company has given a massive return of 247.95 percent.
What Happened:
Shakti Pumps (India) Limited has received a Letter of Award from the Maharashtra Energy Department Agency (MEDA) to supply and install 877 solar photovoltaic water pumping systems (SPWPS) across Maharashtra under the PM-KUSUM scheme for a consideration of Rs. 23.91 crore.
The project includes designing, manufacturing, supplying, transporting, installing, testing, and commissioning the systems. The work is expected to be completed within 120 days from the date of the work order. This project strengthens Shakti Pumps’ position in the solar energy sector.
Order Book:
As of December 2024, Shakti Pumps (India) Limited currently holds an order book of Rs. 2,070 crore, with major orders including Rs. 754.3 crore from the Magel Tyala Saur Krushi Pump Yojana in Maharashtra.
Future Outlook:
The management is positive about the future of the electric vehicle (EV) market and is focusing on research and development for electric controllers and motors. They plan to set up a solar module manufacturing plant to solve supply chain problems and boost production. The company aims for at least 25 percent growth and plans to raise Rs. 400 crores through a Qualified Institutional Placement (QIP) to expand its capacity.
Recent Quarter Results:
Shakti Pumps (India) Limited reported a significant increase in revenue, rising from Rs. 496 crore in Q3 FY24 to Rs. 649 crore in Q3 FY25, reflecting a growth of 30.85 percent YoY. The company’s net profit also surged by 131.11 percent, from Rs. 45 crore in Q3 FY24 to Rs. 104 crore in Q3 FY25.
Company Overview:
Shakti Pumps (India) Limited manufactures a wide range of pump systems and motors, with a focus on submersible, solar, centrifugal, and specialized pumps. The company serves various sectors, including agriculture, irrigation, and industrial processes, providing water-pumping solutions to over 100 countries worldwide.
Written By – Nikhil Naik
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