Shares of this pumps and motors manufacturing company surged up to 8 percent on Friday’s trading session after the company received an order worth Rs. 258 crores from Haryana Renewable Energy Department. The shares have delivered a multibagger return of 157 percent to its shareholders on a YTD basis.
With a market capitalisation of Rs. 1,917 crores, the shares of Shakti Pumps (India) Ltd started Friday’s trading session on a higher note at Rs. 1,020. The shares hit a high of Rs. 1,093, gaining around 6 percent and are currently trading at Rs. 1,045.20 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had secured another order from the Haryana Renewable Energy Department (HAREDA) under the KUSUM‐3 scheme to supply, install and commission 6,408 solar water pumping systems.
The total amount of the work order is for around Rs. 258 crores. Furthermore, the orders are to be supplied within 90 days from the date of issue of the work order.
Earlier, this year, the company received an order from the Haryana Renewable Energy Department to supply 7,781 pumps worth Rs. 358 crores.
Coming onto the company’s financial statement, the revenue zoomed by 35 percent from Rs. 113.02 crores in the June quarter to Rs. 152.78 crores in the September quarter. In addition, the net profits increased from Rs. 1 crore to Rs. 5.86 crores during the same timeframe.
As of FY23, the company had an order book of Rs. 900 crores. In addition, the company holds a dominant position with more than 30 percent market share in the domestic solar pump market.
Furthermore, the company gets revenue from across the world, primarily from the Middle East which contributes 44 percent of revenue, 30 percent of the revenue inflows from the USA, 15 percent of revenue comes from 15 percent, 7 percent of revenue from Asia and the remaining 4 percent of revenue is contributed from the rest of the world.
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- 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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