Prakash Diwan of Altamount Capital Management told CNBC-TV18, "Shakti Pumps (India) has done exceedingly well in the market as well as in its product segment. It is the only company that makes steel submersible pumps in India and it competes with the likes of Grundfos which is a global player. It exports to more than 100 countries now – that has been a great story till last quarter where because of the fact that it has a significant export towards the Gulf market, it suffered in Iraq, Libya and Syria because of the geopolitical issues. In fact not just suffered it decided to go slow on that as the conference call tells us now."
"People misinterpreted the numbers which came out on Friday and the stock took a hammering of sorts whereas fundamentally there is nothing that has changed so drastically that you would need to discount the stock so negatively. The company is doing exceedingly well, there is 20 percent domestic growth rate, they are pioneers in solar power pumps; that is a huge change that they are making and it’s an excellent company from an engineering perspective where the input side has been so well managed, their margins have been improving," he said.
"It is a great story in the making, the stock has done well but at ten times forward FY15 earnings per share (EPS) it is still not so expensive."
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