Shakti Pumps hits 5% upper circuit for 2nd day amid Rs 24 crore MEDA order

Over the past three months, shares of Shakti Pumps have surged 14 percent

Shares of Shakti Pumps were locked at a 5 percent upper circuit for the second consecutive day on February 6, at Rs 874 per share. The rally follows the company’s latest order worth Rs 24 crore from the Maharashtra Energy Department Agency (MEDA) for the supply of 877 Solar Photovoltaic Water Pumping Systems (SPWPS) under Component-B of the PM-KUSUM scheme.

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

Shakti Pumps specialises in manufacturing pumps, motors, and spare parts, with a core product lineup that includes engineered pumps, industrial pumps, and solar pumps.

In the recently concluded third quarter, the company’s net profit skyrocketed 130 percent year-on-year (YoY) to Rs 104 crore, while revenue from operations jumped 31 percent to Rs 648.8 crore.

As of December 2024, Shakti Pumps boasted an order book of Rs 2,070 crore, with major contracts including a Rs 754.3 crore order under Maharashtra’s Magel Tyala Saur Krushi Pump Yojana.

Looking ahead, the management remains optimistic about the electric vehicle (EV) market, emphasising research and development in electric controllers and motors. To streamline supply chains and scale production, the company is also planning to set up a solar module manufacturing plant.

The company has set a growth target of at least 25 percent and aims to raise Rs 400 crore through a Qualified Institutional Placement (QIP) to expand capacity.

Over the past three months, shares of Shakti Pumps have surged 14 percent, significantly outperforming the benchmark Nifty 50, which has declined 9 percent in the same period.