The solar pump market in India is experiencing significant growth, driven by government initiatives and increasing demand for sustainable agricultural practices.
The Indian government has set ambitious targets under the PM KUSUM scheme, aiming to install millions of solar-powered pumps to enhance irrigation and reduce dependency on conventional power sources.
Listed below is one such solar pump stock under Rs. 50 to add to your watchlist:
Latteys Industries Ltd
With a market capitalization of Rs. 204 crores, the shares of submersible pumps and motors manufacturing company started Friday’s trading session on a higher note at Rs. 35.50, locking a 5 percent upper circuit compared to its previous close of Rs. 33.81 apiece.
Looking at the company’s financial performance, the revenue jumped by 14 percent from Rs. 17.28 crores during the March quarter to Rs. 19.70 crores in the June quarter. In addition, the net profits zoomed by 27 percent from Rs. 30 lakhs to Rs. 38 lakhs.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.10 percent and a return on capital employed (RoCE) of 19.33 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 2.34 percent.
The company started its manufacturing in the year 2004 in Chhatraal, Gujarat and moved to a strategic location of GIDC Naroda, Gujarat with an area of 5,718 sq. meters in the year 2011. The company currently has an installed production capacity of approximately 1,20,000 pumps per annum.
Latteys Industries Ltd specializes in manufacturing a wide range of pumping solutions tailored for various sectors, including domestic, agricultural, and industrial applications.
The company is recognized for its extensive portfolio of over 2,000 different models of pumps and these pumps are manufactured and marketed all over India and abroad.
Recently, Latteys secured significant orders for solar water pumping systems under the PM-KUSUM Scheme from the Rajasthan Horticulture Department, amounting to approximately Rs. 30 crores for the supply and installation of various pump types.
Additionally, the company also received an order supply of Solar Submersible Pumps to do Exports through our OEM worth Rs 1.5 crores.
In addition to its core pump manufacturing business, Latteys Industries has recently diversified into the LED lighting segment and is in the process of launching its LED lighting products across India and has already appointed dealers and distributors for the same.
Moreover, the PM-KUSUM Scheme acts as a catalyst for Latteys Industries, driving demand for solar pumps, facilitating significant contracts, and enhancing its competitive positioning within the Indian agricultural sector.
As the government continues to promote renewable energy solutions, Latteys is well-positioned to benefit from these initiatives, potentially leading to increased market share and revenue growth in the coming years.
Written By Vaibhav Patil
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