During Thursday’s trading session, the shares of India’s leading manufacturer of energy-efficient pumps and motors hit a 5 percent upper circuit at Rs. 1,016.9 on BSE, after securing an order for solar PV water pumping systems from the Maharashtra Energy Department Agency (MEDA).
Price Movements
With a market cap of Rs. 11,961 crores, at 03:05 p.m., the shares of Shakti Pumps (India) Limited were trading in the green at Rs. 997.9, up by nearly 3 percent, as against its previous closing price of Rs. 968.5. The stock has delivered multibagger returns of around 301.4 percent in one year, while around 27 percent of positive returns in a month.
What’s the News
According to the latest exchange filings, Shakti Pumps (India) Limited has received a Letter of Award (LoA) from the Maharashtra Energy Department Agency (MEDA). The work order is valued at nearly Rs. 12.42 crores and shall be completed within 120 days from the date of issuance.
The order involves the design, manufacturing, supply, transportation, installation, testing, and commissioning of 445 off-grid Solar Photovoltaic Water Pumping Systems (SPWPS) at multiple locations across Maharashtra. This initiative falls under Component-B of the PM-KUSUM scheme.
Previous Updates
- 7th October 2024: The Board of Shakti Pumps approved the issuance of bonus shares in a 5:1 ratio, with the record date fixed for November 25, 2024.
- 6th November 2024: The company secured a work order worth Rs. 116.36 crores under Component‐B of the PM‐KUSUM scheme from the Haryana Renewable Energy Department (HAREDA) for the supply, installation, and commissioning of 3,174 solar water pumps.
Order Book
As of December 2024, the company’s outstanding order book stood at around Rs. 2,070 crores, which will be executed within a year. During the quarter, Shakti Pumps received a Letter of Empanelment of 25,000 pumps, amounting to Rs. 754.3 crores under the Magel Tyala Saur Krushi Pump Scheme in Maharashtra, and an order of 3,174 pumps from Haryana Renewable Energy Department (HAREDA), amounting to Rs. 116.36 crores.
With the diversification of orders beyond the PM KUSUM Scheme, like Magel Tyala Saur Krushi Pump Scheme, the management remains confident about the company’s growth prospects.
Also read: Airport stock under ₹100 to buy now for an upside potential of 15%; Do you own it?
Financial Performance
Shakti Pumps reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 31 percent, from Rs. 496 crores in Q3 FY24 to Rs. 634.6 crores in Q3 FY25. Similarly, its net profit increased during the same period from Rs. 45 crores to Rs. 104 crores, representing a rise of nearly 131.2 percent YoY.
EBITDA for Q3 FY25 reached Rs. 154.5 crores, representing an increase of around 117.6 percent YoY from Rs. 71 crores in Q3 FY24, with an EBITDA Margin rising by 948 bps to 23.8 percent, up from 14.3 percent, during the same period.
Key Financial Ratios
In terms of key financial metrics, Shakti Pumps has a Return on Equity (RoE) of 24.2 percent and a return on capital employed (RoCE) of 31.4 percent. Additionally, the company’s debt-to-equity ratio stands at 0.17.
About the company
Founded in 1982, Shakti Pumps (India) Limited (SPIL) is engaged in manufacturing solar pumps, energy-efficient stainless-steel submersible pumps, pressure booster pumps, pump motors, and other products and spare parts.
SPIL is the only company that manufactures a wide range of products for solar pump installation in-house, including variable frequency drives, structures, motors, inverters, and so on.
The company has strategically expanded its business model by venturing into the manufacturing of electric motors and controllers for electric vehicles. In the EV sector, it is advancing with pilot orders from OEMs.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
