Shares of this pumps and motors manufacturing company clocked 5 percent upper circuit after receiving an order from Maharashtra Government. The shares have delivered a multibagger return of 212 percent to its shareholders in one year.
With a market capitalization of Rs. 2,351 crores, the shares of Shakti Pumps (India) Ltd started Friday’s trading session on a higher note at Rs. 1,279.65, clocking a 5 percent upper circuit compared to its previous close of Rs. 1,218 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a Letter of Award from the Maharashtra Energy Department Agency (MEDA) for 3,500 Solar Photovoltaic Water Pumping System (SPWPS) at various locations across the State of Maharashtra under PM‐KUSUM scheme.
The total amount of the work order is for around Rs. 93 crores and the orders are to be fulfilled within 120 days from the date of issue of the work order.
Coming onto the company’s financial statements, the revenue zoomed by 224 percent from Rs. 153 crores during the September quarter to Rs. 496 crores in the December quarter. In addition, the net profits magnified by 650 percent from Rs. 6 crores to Rs. 45 crores during the same period.
The order book of Shakti Pumps in Q3FY24 stands at RS. 2,250 crores to be completed in the next 21 months. This order book includes new solar pump orders in addition to ongoing orders, reflecting a strong pipeline of projects for the company.
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.
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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