Smallcap stock engaged in the manufacturing and selling of a wide range of pumps, motors, spare parts, and EV components jumped upto 5 percent in the day’s trade after the board approved raising funds not exceeding Rs. 400 Crores.
Price Action
With a market capitalization of Rs. 15,075 Crores, the shares of Shakti Pumps (India) Limited were trading at Rs. 1,254 per equity share, up 3.34 percent from its previous day’s close price of Rs. 1,213.50.
What Happened
The Board of Directors of Shakti Pumps (India) Limited has considered and approved raising funds for an aggregate amount not exceeding Rs. 400 Crores in one or more tranches by way of qualified institution placement or any other means.
Recent Bonus Issue
Shakti Pumps (India) Limited had earlier considered and approved 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 eligible shareholders as on the record date i.e., November 25, 2024.
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 ~25 percent market Share in the domestic solar Pump Market under the PM KUSUM scheme. As of September 30, 2024, it has a strong order book of ~Rs. 1,800 Crores.
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.
Financials and Ratios
Its revenue from operations grew by 317 percent from Rs.153.54 Crores in Q2FY24 to Rs. 640.32 Crores in Q2FY25, accompanied by profits of Rs. 5.86 Crores to Rs. 101.42 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 34.9 percent and a return on capital employed (ROCE) of 42.39 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.17.
Written by: Bharath K.S
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