Shakti Pumps Share Price Raised to 5% Upper Circuit for Second Day Following Rs 24 Crore MEDA Order

Market Performance

Shakti Pumps share price has experienced notable movement in the stock market, with its shares hitting the 5% upper circuit for the second consecutive day. The stock reached Rs 874 per share on March 6, following the announcement of a significant order. Over the past three months, the company's shares have gained 14%, outperforming the broader market, as represented by the Nifty 50 index, which has seen a 9% decline during the same period.

Main News

Shakti Pumps, a company known for manufacturing pumps, motors, and spare parts, has secured an order worth Rs 24 crore from the Maharashtra Energy Department Agency (MEDA). The order is to supply 877 Solar Photovoltaic Water Pumping Systems (SPWPS) under the PM-KUSUM scheme, which aims to promote solar power-based water pumps for agriculture.

The project entails a complete scope of work, including the design, manufacturing, supply, transportation, installation, testing, and commissioning of the 877 SPWPS units across Maharashtra. The company is expected to complete the project within 120 days of receiving the work order.

Company Details

Shakti Pumps is a key player in manufacturing various types of pumps and motors, specializing in engineered pumps, industrial pumps, and solar pumps.

As of December 2024, the company reported an order book worth Rs 2,070 crore, which includes a significant Rs 754.3 crore order under the Magel Tyala Saur Krushi Pump Yojana in Maharashtra.

Financial Overview

• Revenue: Shakti Pumps reported a 31% year-on-year increase in revenue from operations, amounting to Rs 648.8 crore for the third quarter.
• Net Profits: The company's net profit showed a remarkable growth of 130% YoY, reaching Rs 104 crore for the quarter.

Summary of the Article

Shakti Pumps has experienced strong market performance, with a notable increase in the stock price following the announcement of its Rs 24 crore order from MEDA. The company continues to strengthen its position in the solar pump sector with an impressive order book and a focus on expanding its manufacturing capabilities. The financial results for the third quarter reflect substantial growth in both revenue and net profits, signalling positive prospects for the company. Shakti Pumps is also optimistic about future growth, setting a target of at least 25% and planning to raise Rs 400 crore through a Qualified Institutional Placement (QIP) to enhance its capacity and scale production further.