505 BSE stocks locked in upper circuits; Shakti Pumps, HPIL, BPL zoom 20%

IFCI, MSTC, Texmo Pipes & Products, Punjab Communications, Jindal Photo and Manaksia Steels are among 17 stocks has frozen 10 per cent circuit on the BSE

One out of 9 stocks or as many as 505 stocks were locked in their respective maximum upper limit on the BSE in Monday's trade as of 02:14 pm. This came as benchmark index S&P BSE Sensex jumped 1.6 per cent to 71,851.

Shakti Pumps (India), Hindprakash Industries (HPIL), BPL, Oswal Agro Mills, Manugraph India, Aban Offshore, Oswal Greentech, Urja Global and Infibeam Avenues were among the 21 stocks that were locked in the 20 per cent upper circuit.

IFCI, MSTC, Texmo Pipes & Products, Punjab Communications, Jindal Photo and Manaksia Steels were among the 17 stocks that were frozen at the 10 per cent upper circuit.

Among the individual stocks, Shakti Pumps hit a record high of Rs 1,269.95, surpassing its previous high of Rs 1,224.65 touched on October 2023 after it reported a solid December quarter (Q3FY24).

The company is a leading manufacturer of stainless-steel submersible pumps, pressure booster pumps, pump-motors, controllers, and inverters, among other products.

In Q3FY24, Shakti Pumps reported a 302 per cent year-on-year (YoY) jump in its consolidated profit after tax (PAT) at Rs 45.20 crore on back of a strong operational performance.

It had posted PAT of Rs 11.2 crore in Q3FY23. Revenue from operations grew 57.7 per cent YoY at Rs 495.60 crore; while EBITDA (earnings before interest, taxes, depreciation, and amortization) margin expanded to 14.3 per cent from 7 per cent in the year-ago quarter.

This robust performance is attributed to the company’s strong order book, which it has secured over the last 6 months from the state of Haryana, Uttar Pradesh, Rajasthan, and Maharashtra (LOE).

Notably, in December 2023, the company received a new order for 6,408 off-grid solar photovoltaic water pumping systems (SPWPS) amounting to Rs 258 crore from Haryana Renewable Energy Department.

As on date, the company has approximately Rs 2,250 crore worth of orders to be executed over the next 21 months, ensuring a sustained and strong growth momentum in the future, the management said.

PM KUSUM scheme, led by the government has big potential, as it is estimated that there are over 2 million solar pumps to be installed under Component B (Off grid pumps) till FY28.

Additionally, under Component C (on grid pumps) the company has 1.5 million solar pumps to be installed.

With an average minimum rate of around Rs 3 lakh per pump, the total opportunity in this regard amounts to around Rs 1,050 billion. As a market leader in the industry, Shakti Pumps is poised for substantial growth in the upcoming years, as per the management.

Shares of Infibeam Avenues hit 52-week high of Rs 34.90, zooming 20 per cent on the BSE. In the past three trading days, the stock has rallied 36 per cent after it reported robust operating and profit margins in Q3FY24.

On a consolidated basis, the company reported 64 per cent YoY jump in PAT at Rs 42.1 crore. Revenue grew 120 per cent YoY at Rs 912 crore. The company’s gross revenue surpassed $100 million for the first time in a single quarter.

Infibeam Avenues signed a Memorandum of Understanding (MoU) with the Gujarat Government with a proposed investment of Rs 2,000 crore (nearly $250 million) by financial year 2030. 

The company has also made a strategic foray into the capital markets and digital lending software market and will acquire 49 per cent equity stake in Bengaluru based Pirimid Fintech for Rs 25 crore.