This 'T' group stock surged 75% in one month; zoomed 660% in 1 year

Shakti Pumps shares locked in 5 per cent upper circuit at Rs 1,337.85, also its new high on the BSE, after its board approved raising Rs 400 crore by way of a qualified institutions placement issue

Shares of Shakti Pumps (India) (SPIL) locked in upper circuit of 5 per cent at Rs 1,337.85, also its new high, on the BSE in Wednesday’s intra-day trade after the board of directors of the company in its meeting held today approved raising Rs 400 crore by way of a qualified institutions placement (QIP) issue. 

 

In comparison, the BSE Sensex was down 0.65 per cent, at 77,687, at 10:46 AM. A combined 464,000 equity shares had changed hands so far, and there are pending buy orders for nearly 1,600 more shares on the BSE.

 

In one month, the stock price of SPIL has zoomed 75 per cent, compared to the 4.65 per cent decline in the benchmark index during the same period. In one year, it has skyrocketed 660 per cent, as compared to the 9 per cent rise in the BSE Sensex.

 

 

Currently, SPIL is trading under ‘T’ or Trade-for-Trade (T) group. The T group is a surveillance measure that requires securities to be settled on a trade-to-trade basis.

 

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 the exchanges showed. Retail shareholders held 32.52 per cent holding in the company, data showed.

 

SPIL is a leading integrated player manufacturing fabrication technology-based solar/ electricity operated submersible pumps in India, and catering to customers across the globe. The company is one of the few Indian manufacturers with the competency to make 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; it 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.

 

Shakti Pumps, on December 12, had announced that it has received a Letter of Empanelment from the 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.

 

Meanwhile, as on September 2024, SPIL’s outstanding order book stood at around Rs 1,800 crore. Given the company’s leadership position in the PM KUSUM Scheme, the management is confident that the company will continue to witness an influx of orders, which will play a pivotal role in sustained growth. 

 

Parallelly, the company continues to remain focused on expanding its presence in the retail business as well as the electric vehicle (EV) business, which would contribute to a sustained financial performance in the future, the management said.