Shakti Pumps is a well-known company providing water pumping solutions. It is renowned for its advanced water pumping solutions. In recent years, the company has expanded its green energy-driven products portfolio.
Shakti Pumps has received a new order from Maharashtra Energy Development Agency (MEDA) worth INR 23.91 crore. Under this order, the company is required to supply 877 Solar Photovoltaic Water Pumping Systems (SPWPS). This project is a part of Component-B of the PM-KUSUM scheme. With this project, the company’s position in the field of green energy-based irrigation will be further strengthened.
Renowned investor Ramesh Chimanlal Shah holds 3,030,229 shares (2.52% stake) of the company, valued at approximately INR 238.8 crore.
Shakti Pumps-MEDA Project Scope and Execution
The contract covers the design, manufacture, supply, transportation, installation, testing, and commissioning of the pumps. The company has 120 days to complete the project. The initiative supports farmers by reducing reliance on conventional electricity and fossil fuels.
Despite the order win, the ongoing bearish market caused Shakti Pumps’ stock to fall 5% to INR 768.10, hitting a lower circuit from its previous close of INR 808.50. Short-term volatility aside, the company’s financial health and growing order book suggest a strong long-term outlook.
However, Shakti Pumps is a multibagger stock. This stock surged more than 6,800% in the last five years. The stock is trading at a discount of 40% from its peak level of INR 1,277.90 per share on 10 January 2025.
Financial Performance and Growth
Shakti Pumps has delivered solid earnings growth:
- Q3 FY25 Revenue: INR 648.80 crore (30.9% YoY growth)
- Net Profit (PAT): INR 104 crore (130.2% YoY growth)
- 9M FY25 Revenue: INR 1,850.90 crore (Up from INR 761.50 crore YoY)
- 9M FY25 PAT: INR 298.10 crore (Margin expanded to 16.1%)
The company’s unexecuted order book stands at INR 2,070 crore as of 31 December 2024, indicating strong future revenue visibility.
Promoters and Expansion Plans
The company’s promoters bought 27,400 shares in February, reinforcing confidence in the company. In November 2024, the stock underwent a 5:1 bonus issue which benefitted existing shareholders.
Beyond solar pumps, Shakti Pumps is expanding into EV components via its subsidiary, Shakti EV Mobility. The company infused INR 6 crore into this unit in February. The company’s total investment reached to INR 45 crore. The subsidiary manufactures motors and chargers for EVs, positioning Shakti Pumps in a high-growth sector.
Industry Significance and Future Strategy
Winning this order underscores Shakti Pumps’ role in India’s solar irrigation push. With agriculture consuming a major share of electricity, solar-powered pumps can reduce subsidy burdens and support clean energy goals.
To mitigate supply chain risks, the company is exploring solar module manufacturing. Additionally, it plans to raise INR 400 crore through QIP to fund capacity expansion and R&D in renewable technologies.
Final Thoughts
Shakti Pumps is executing a well-defined growth strategy across solar and EV segments. While stock price movements may fluctuate, its fundamentals remain strong. Investors should monitor execution timelines, order inflows, and expansion moves as the company cements its market position in India’s renewable energy space.
In the first two months of 2025, a total of 10 IPOs were listed in the Indian markets. These IPOs cumulatively raised INR 15,983.05 crore. Out of these 10 IPOs, three IPOs delivered negative returns. The average listing returns stand at 17.53%. It is quite low compared to IPOs listed in December 2024.
SME landscape is not affected by ongoing market turmoil. As many as 39 IPOs were listed from 1 January to 28 February 2025. Out of these 39, thirteen IPOs landed in negative territory. The average listing returns stand at 18.60%. These IPOs cumulatively raised INR 1,827.94 crore from the market.
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