Shares of Shakti Pumps were locked at five percent upper circuit for the fifth consecutive day after it reported a bumper January-March quarter (Q4FY24) performance. The stock also hit an all-time high of Rs 2,285 per share on May 6 and zoomed over 28 percent since it announced its Q4 results.
Shakti Pumps is a leading maker of solar stainless-steel submersible pumps, pressure booster pumps, controllers, invertors, and other products. It is the only company that manufactures products for solar pump installation in-house, which includes drives, structures, motors, and inventors.
So far this year, the stock of this smallcap company has soared over 124 percent, outperforming three percent rise in benchmark Nifty 50 index during the same period.
The company's profit-after-tax (PAT) rose over 40x to Rs 89.7 crore in Q4FY24 from Rs 2.2 crore a year back. Revenue, too, jumped 233 percent YoY to Rs 600 crore, while EBITDA margin expanded by 1,550 basis points to 21.5 percent in Q4FY24.
Under the PM-KUSUM scheme, over 35 lakh solar pumps are estimated to be installed by FY28. The average pricing of installing a solar pump is around Rs 3 lakh, so the total market opportunity stands at Rs 1.05 lakh crore.
ALSO READ: Shakti Pumps Consolidated March 2024 Net Sales at Rs 609.28 crore, up 233.56% Y-o-Y
Manish Chowdhury, Head of Research, StoxBox believes that since Shakti Pumps is the market leader in the industry, it is poised to benefit from such a scheme over the years.
"Considering the long-term scenario, the high energy targets set by the government coupled with the ease of installation of the company’s products, are expected to drive the market going ahead. These factors coupled with volatile fuel prices associated with fuel-based pumping systems are about to create ample opportunities for solar-based pumping systems," he said.
Earlier this year, the company had raised Rs 200 crore via qualified institutional placement (QIP). The QIP was fully subscribed by two large mutual funds such as LIC Mutual Fund and SBI Mutual Fund.
So far this year, the stock of this smallcap company has soared over 124 percent, outperforming benchmark Nifty 50 index during the same period.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
