 "This SBI, LIC MF portfolio stock zoomed over 500% in 1 year; hits new high")
Shakti Pumps (India) shares (SPIL) hit a new high of Rs 1,010, gaining 5 per cent on the BSE in Tuesday’s intra-day trade on a healthy business outlook. In two days, the stock has rallied 10 per cent. It surpassed its previous high of Rs 977.55 that it touched on December 17, 2024.
Meanwhile, in one year, Shakti Pumps share price has skyrocketed 515 per cent from the level of Rs 164.26 (adjusted to 5:1 bonus issue) on the BSE. In comparison, the BSE Sensex had gained 10.3 per cent during the same period.
As on November 26, 2024, LIC Mutual Fund (3.62 per cent) and SBI Mutual Fund (2.27 per cent) collectively held a 5.9 per cent stake in SPIL, the shareholding pattern data from exchanges showed. Retail shareholders held 32.52 per cent holding in the company, data showed.
In two weeks, the market price of Shakti Pumps surged 29 per cent after the company, on December 12, had announced that it has received a Letter of Empanelment from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the supply of 25,000 standalone off-grid DC solar photovoltaic water pumping system (SPWPS) pumps for the entire state of Maharashtra under the Magel Tyala Saur Krushi Pump Scheme.
Under this arrangement, the company will receive a series of orders from MSEDCL over the next one year that will cumulatively amount to 25,000 pumps with a total value of Rs 754.30 crore (inclusive of GST). The stipulated timeline of 60 days for the execution of these orders will commence from the date each work order is issued.
"This is the second major Letter of Empanelment we have received from the Government of Maharashtra during the past year, following the initial Letter of Empanelment for 50,000 pumps," the company said in an exchange filing.
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Shakti Pumps is a leading integrated player manufacturing fabrication technology-based solar/electricity operating submersible pumps in India, catering to customers across the globe. The company is one of the few Indian manufacturers with the competency to manufacture solar and submersible pumps and motors in-house. The company is the biggest beneficiary under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) scheme and holds approximately 25 per cent market share in the scheme. The company has two manufacturing facilities located at Pithampur in Madhya Pradesh with a combined capacity of 500,000 pumps and motors per year.
The PM KUSUM scheme aims to boost the use of solar energy in agriculture, reducing dependency on grid power and diesel pumps. It encompasses the addition of 10,000 MW of solar power capacity, installing 1.4 million solar-powered agricultural pumps, and solarising 3.5 million existing grid-connected agriculture pumps. By promoting sustainable energy, PM KUSUM empowers farmers to increase efficiency, reduce electricity costs, and contribute to a greener future.
Last month, Shakti Pumps received a work order worth Rs 116.36 crore (including GST) under Component‐B of the PM‐KUSUM scheme from Haryana Renewable Energy Department (HAREDA) for 3,174 pumps.
Meanwhile, in the first half (April to September) of the financial year 2024-25 (H1FY25), SPIL had reported robust earnings, with profit after tax (PAT) jumping 28 times to Rs 194.1 crore on a strong operational performance. The company had posted a PAT of Rs 6.9 crore in H1FY24.
The company's revenues increased to Rs 1,202 crore in H1FY25, as compared to Rs 265.8 crore in H1FY24. Earnings before interest, tax, depreciation and amortisation (Ebitda) rose to Rs 284.6 crore in H1FY25, as against Rs 23.1 crore in H1FY24. Ebitda margin expanded to 23.7 per cent in H1FY25 as against 8.7 per cent in H1YF24.