Shakti Pumps shares jump 5% on fresh order win; soar 400% in 2024

Shakti Pumps has delivered exceptional returns, with its stock skyrocketing by 400 percent in 2024 alone.

Shares of Shakti Pumps surged 5 percent to hit an upper circuit of Rs 857, extending gains for a fourth session in a row on December 12 after the company received an order from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 25,000 standalone off-grid DC Solar Photovoltaic Water Pumping Systems.

Shakti Pumps announced in a regulatory filing on December 11 that the Rs 754.30 crore order is slated for completion within 60 days of receiving the notice to proceed with the work order.

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This is a second order in quick succession after it secured an order in November under Component B of the PM-KUSUM scheme. The order, placed by the Haryana Renewable Energy Department (HAREDA), involved the supply of 3,174 solar pumps worth Rs 116.36 crore.

Shakti Pumps is one of India’s prominent players in the solar pump market, garnering a 25 percent share under the PM-KUSUM scheme, a government initiative aimed at boosting agricultural productivity with solar energy. The scheme envisions the installation of over 14 lakh off-grid pumps (Component B) and 35 lakh on-grid pumps (Component C) across the country.

Shakti Pumps has delivered exceptional returns, with its stock gaining a staggering 400 percent in 2024 alone. Over five years, it has delivered a staggering 2,413 percent return, generating multifold returns for its investors.

For the quarter ended September, the company reported a sharp rise in revenue to Rs 635 crore, up from Rs 153 crore in Q2 FY24. EBITDA jumped to Rs 149 crore, with margins improving from 10 percent in Q2 FY24 to 23 percent in Q2 FY25.

Net profit for the quarter surged to Rs 101 crore, a significant increase from Rs 6 crore a year ago, while PAT margins expanded from 3.8 percent to 16 percent. As of June 30, Shakti Pumps had a robust order book of Rs 1,800 crore.

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