Shakti Pumps shares locked in 5% upper circuit on Long term rating upgrade

Shakti Pumps stock hits upper circuit: Shares of Shakti Pumps were locked in 5 per cent upper circuit 2,845.20 per share. 

The uptick in stock price came after the company announced that its Long term rating has been upgraded.

In an exchange filing, Shakti Pumps said, “We are glad to inform you that the INDIA Ratings & Research Private Limited has assigned the Ratings for Bank facilities on the basis of recent developments including operational and financial performance of the company.”

The company's term loan maturing in FY25 has been upgraded to IND A+/Stable. Similarly, its fund-based limits' long-term rating has been upgraded, with the short-term rating affirmed at IND A+/Stable/IND A1.

Additionally, the company has received a new long-term rating for its non-fund-based limits, with the short-term rating also affirmed. It has been rated IND A+/Stable/ IND A1.

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.

Financial performance
 

Shakti Pumps posted a multifold jump in its consolidated profit after tax to Rs 89.70 crore during the quarter ended March 2024 on the back of higher revenues.

It had clocked a net profit after tax (PAT) of Rs 2.2 crore during the fourth quarter of the preceding fiscal, the company said in a statement.

Its revenues surged over three-fold to Rs 609.3 crore from Rs 182.7 crore in the year-ago quarter.

The company's order book stood at Rs 2,400 crore as of March 31, 2024, which includes three new orders worth Rs 250.62 crore from Haryana and Maharashtra for installation of solar pumps, he added.

During the quarter, the company also raised Rs 200 crore through a QIP. A significant portion of these funds will be directed towards scaling up the production capacities of pumps/motors, inverters and supporting structures.

Shakti Pumps India Limited reported a considerable increase in its consolidated profit after tax, reaching Rs 89.7 crore for the quarter ending March 2024, driven by robust revenue growth. This marks a notable rise from the Rs 2.2 crore PAT recorded in the same quarter of the previous fiscal year, as stated by the company.

The company's revenues soared more than three-fold to Rs 609.3 crore from Rs 182.7 crore in the corresponding quarter last year. 

As of March 31, 2024, Shakti Pumps' order book amounted to Rs 2,400 crore.

In addition, during the quarter, Shakti Pumps successfully raised Rs 200 crore through a Qualified Institutional Placement (QIP). A major portion of these funds will be utilised to expand production capacities for pumps, motors, inverters, and related infrastructure.

The market capitalisation of SHakti Pumps is Rs 5,700.39 crore, and the company falls into SmallCap category.

The 52-week high of the Shakti Pumps stock is Rs 2,964.70 while its 52-week low is Rs 564 apiece. 

At 9:52 AM, Shakti Pumps stock continued to be locked in the upper circuit. By comparison, BSE Sensex was trading 0.43 per cent higher at 77,321.58 levels.