Shakti Pumps shares locked in 5% upper circuit on Rs 558 crore-order win

Shakti Pumps stock hits upper circuit: Shares of Shakti Pumps were locked in 5 per cent upper circuit at Rs 4695.45 per share on Friday, August 02, 2024.

The uptick in stock price came after the company announced that it has secured Letter of Intent (LoI) for an order worth Rs 558.16 crore from Department of Agriculture, Uttar Pradesh.

In an exchange filing, Shakti Pumps said, “We would like to inform you that Shakti Pumps (India) Limited has received Letter of Intent from the Department of Agriculture, Uttar Pradesh for 12,537 pumps for the entire state of Uttar Pradesh under Component-B of PM-KUSUM scheme (Phase-III).”

Under the order details, Shakti Pumps will be responsible for supply, installation and commissioning of solar water pumping systems.

The work order needs to be executed within March 31, 2025. The order is to be executed in a phased manner on the basis of quantities defined under the letters of proceed (once received), Shakti Pumps said.

Financial performance

Shakti Pumps revenue increased to Rs 567.6 crore in Q1FY25 as compared to Rs 113.1 crore in Q1FY24.

The company’s profit after tax (PAT) grew to Rs 92.6 crore in Q1FY25, from Rs 1 crore in Q1FY24. Its PAT margin expanded to 16.3 per cent in Q1FY25, from 0.9 per cent in Q1FY24.

Earnings before interest, tax, depreciation and amortisation (Ebitda) came in at Rs 135.9 crore in Q1FY25, as against Rs 7.9 crore in Q1FY24. Consequently, Ebitda margin stood at 23.9 per cent in Q1FY25, as against 7 per cent in Q1YF24, largely driven by economies of scale and higher execution rate.

Shakti Pumps India manufactures submersible pumps for domestic, industrial, horticultural and agricultural use. It operates internationally, exporting its products to over 100 countries and maintaining branches in the USA, Australia, and UAE. Listed on the Bombay Stock Exchange and the National Stock Exchange of India, the company boasts two manufacturing facilities with an annual production capacity of 500,000 pumps and is a leading manufacturer and exporter of solar pumps in India.

The market capitalisation of Shakti Pumps is Rs 9,407.38 crore, according to Bombay Stock Exchange (BSE). The company falls into the SmallCap category.

The 52-week high of the Shakti Pumps stock is Rs 4,740.50 while its 52-week low is Rs 618.50 apiece.

At 1:52 PM, Shakti Pumps stock continued to be locked in the upper circuit. By comparison, BSE Sensex was trading 0.81 per cent lower at 81,200.53 levels.