Shakti Pumps stock gains another 18% to touch new all-time high, up 264% in less than a year; what’s behind the rally?
Shakti Pumps stock has gained 44% in the current month so far and has consistently shown an upward trend since March 2023, delivering a remarkable return of 264% in less than a year. Shakti Pumps reported its highest ever revenue and profitability in Q3FY24.
Continuing their robust rally for the second consecutive session, shares of Shakti Pumps surged another 18% in today's intraday trade, reaching a new all-time high of ₹1,498 apiece. The stock initiated its bull run in the previous trading session, hitting the 20% upper circuit limit, after a positive response from investors to the company's December quarter performance.
This impressive rally has propelled the stock to a 44% gain in the current month so far. What's even more noteworthy is the stock's consistent upward trend since March 2023, closing eight out of the nine subsequent months in positive territory.
With the January surge included, the stock has delivered a remarkable return of 264% in less than a year.
In an exchange filing on Monday (January 29), the company informed investors that Madhya Pradesh Industrial Development Corporation Limited (MPIDC) has sanctioned 46 acres of land to the company, situated at A-10 and B-86, Smart Industrial Township, Sector 7, Pithampur, Indore (M.P.). The company said it uses this land for future expansion.
Stellar Performance in Q3
On January 27, the company released its December quarter numbers (Q3FY24), reporting the highest ever revenue and profitability in a quarter. The revenue from operations during the quarter soared to ₹495.6 crore, marking a 57.7% increase compared to the ₹314.2 crore reported in Q3FY23.
EBITDA for Q3FY24 stood at ₹71.0 crore, a significant rise from the ₹21.9 crore reported in Q3FY23, and the EBITDA margin expanded impressively by 735 basis points to 14.3%.
The consolidated profit after tax came in at ₹45.2 crore in Q3FY24 from ₹11.2 crore, reflecting 301.8% YoY growth. For the 9MFY24, PAT grew by 137.9% YoY to ₹52.1 crore from ₹21.9 crore in 9MFY23.
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This stellar performance can be attributed to the company's robust order book, secured over the last six months from the states of Haryana, Uttar Pradesh, Rajasthan, and Maharashtra (LOE). The company secured new orders in December for 6,408 Off-Grid solar photovoltaic water pumping systems (SPWPS), valued at ₹258 crore, from the Haryana Renewable Energy Department.
As on date, the company holds approximately ₹2,250 crore worth of orders to be executed over the next 21 months, ensuring sustained and robust growth momentum in the future, the company highlighted in its earnings report.
About Shakti Pumps
Shakti Pumps is a leading manufacturer of stainless-steel submersible pumps, pressure booster pumps, pump motors, controllers, and inverters, among other products. It is one of the largest Indian solar pumping companies, with a 30%+ share of the PM Kusum scheme. Over the last few years, SPIL has developed a highly advanced in-house R&D team and infrastructure.
SPIL offers over 1,200 product variants across all categories, with applications ranging from agricultural to building services, power, oil & gas, metals & mining, and others.
It has a strong presence in the domestic market, with over 500 dealers, 400 service centres, and 18 state-based marketing branches, and sells all of its products under the "Shakti" brand.
The company has a presence in over 100 countries and is present on all continents, according to the company's recent exchange filing.
At 11:00 am, the stock was trading with a gain of 14% at ₹1,446 apiece.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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