Shakti Pumps locks in 5% upper circuit, hits record high; up 16% in 3 days

Shakti Pumps (India) share price: The company is said to be the biggest beneficiary under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) scheme

Shakti Pumps share price was locked at the 5 per cent upper circuit band on the BSE on Thursday. At 1:45 PM, the shares were frozen at the upper limit at Rs 1,061.85 per share, a fresh record high for the stock. With this, Shakti Pumps share has surged 15.7 per cent in just three sessions. 

By comparison, the BSE Sensex was up 32 points (0.04 per cent) at the time of the writing of this report, and has gained just 1 per cent in three days.

  Shakti Pumps (India) manufactures energy-efficient pumps and motors, providing a variety of renewable energy solutions, primarily for the agriculture sector. The company has over 1,200 products in its portfolio, which has been indigenously developed by their Research & Development department.

  The company’s product portfolio caters to agriculture, irrigation, industrial applications and processes, pressure boosting in high rise buildings, rural/urban community water supply schemes, waste and sewage water treatments, and fire-fighting among others. 

  On December 14, Shakti Pumps (India) said it has invested Rs 4 crore in its wholly-owned subsidiary i.e. Shakti Energy Solutions Private Limited, by subscribing to 40 million equity shares of face value of Rs 1 each.

  Besides, the company informed the stock exchanges on December 12 that it has received a Letter of Empanelment for 25,000 pumps from Maharashtra State Electricity Distribution Company Limited. 

  “The company will receive a series of orders from MSEDCL over the next one year that will cumulatively amount to 25,000 pumps with a total value of Rs 754.30 crore (inclusive of GST). The stipulated timeline of 60 days for the execution of these orders will commence from the date each work order is issued,” the company said in its statement.

  The company is said to be the biggest beneficiary under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) scheme and holds approximately 25 per cent market share in the scheme.

  The PM KUSUM scheme targets to boost the use of solar energy in agriculture, reduce the dependency on grid power and diesel pumps. The scheme aims to add 10,000 MW of solar power capacity, install 1.4 million solar-powered agricultural pumps, and solarise 3.5 million existing grid-connected agriculture pumps.

  Notably, Shakti Pumps received a work order worth Rs 116.36 crore (including GST) under Component‐B of the PM‐KUSUM scheme from Haryana Renewable Energy Department (HAREDA) for 3,174 pumps.