During Tuesday’s trading session, the shares of India’s leading manufacturer of energy-efficient pumps and motors surged 4.4 percent to hit an intraday high at Rs. 1,090 on BSE.
Over the past six months, from 1st July 2024 to the present date, Shakti Pumps (India) Limited has secured orders worth more than Rs. 1,400 crores.
Stock Performance
With a market cap of Rs. 14,679 crores, the shares of Shakti Pumps (India) Limited closed in the green at Rs. 1,221.1, up by nearly 4.1 percent, as against its previous closing price of Rs. 1,173.15.
The stock has delivered multibagger returns of nearly 637 percent in one year, while around 72.7 percent of positive returns in the last six months. The shares of Shakti Pumps have given positive returns of about 55.5 percent in the last one month.
Total orders in last 6 months
16th July: secured order worth nearly Rs. 33.5 crores from Maharashtra Energy Department Agency (MEDA) for 1200 off-grid Solar Photovoltaic Water Pumping System (SPWPS).
2nd August: order worth around Rs. 558.2 crores from the Department of Agriculture, Uttar Pradesh, for the supply, installation and commissioning of 12,537 solar water pumps.
10th August: received its first order, valued at Rs. 8.5 crores, from Uttarakhand under the Minor Irrigation Department for design, manufacture, supply, transport, installation, testing and commissioning of 200 Solar Photovoltaic Water Pumping System (SPWPS) at various locations in Uttarakhand.
23rd August: order worth Rs. 9.4 crores received from the Department of Agriculture, Jharkhand, for the design, manufacture, supply, transport, installation, testing and commissioning of 400 solar water pumping systems.
6th November: order worth Rs. 116.4 crores received from Haryana Renewable Energy Department (HAREDA) for supply, installation and commissioning of 3,174 solar water pumps.
12th December: order worth Rs. 754.3 crores received from Maharashtra
State Electricity Distribution Company Limited (MSEDCL) for 25,000 Standalone Off-Grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) pumps for the entire state of Maharashtra.
Financials
Shakti Pumps reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 315.4 percent, from Rs. 152.8 crores in Q2 FY24 to Rs. 634.6 crores in Q2 FY25.
Similarly, its net profit increased during the same period from Rs. 6 crores to Rs. 101.4 crores, representing a rise of nearly 1,633.3 percent YoY.
EBITDA for Q2 FY25 reached Rs. 148.7 crores, representing an increase of around 878.4 percent YoY from Rs. 15.2 cores in Q2 FY24, with an EBITDA Margin of 23.4 percent, up from 10 percent, during the same period. This was largely due to higher execution of orders and economies of scale.
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Order Book
As of September 2024, the company’s outstanding order book stood at around Rs. 1,800 crores. In Q2 FY25, SPIL secured a contract worth $35.3 million from the Government of Uganda for supplying solar-powered water pumping.
Shakti Pumps remains focused on expanding its presence in the retail business as well as the EV business, which would contribute to a sustained financial performance in the future.
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.
Written by Shivani Singh
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