Shakti Pumps (India) Limited, a leader in the production of energy-efficient pumps and motors, has announced a 5:1 bonus share issue. The record date for eligibility is set for November 25, 2024. The company, with over 30 years of experience, manufactures pumps for various applications, including firefighting, waste treatment, industrial processes, high-rise pressure boosting, and agricultural systems.
For the quarter ending September 30, 2024, Shakti Pumps reported a remarkable performance. Revenue surged from ₹152.8 crore in Q2 FY24 to ₹634.6 crore in Q2 FY25. EBITDA also saw significant growth, rising from ₹15.2 crore to ₹148.7 crore, with EBITDA margins improving from 10% to 23.4%. Profit After Tax (PAT) soared from ₹5.9 crore to ₹101.4 crore, resulting in a PAT margin increase from 3.8% to 16%.
The company’s robust order book, valued at around ₹1,800 crore as of September 2024, is driven by strong demand, particularly from the PM KUSUM Scheme. Shakti Pumps continues to focus on efficient execution, backed by its advanced manufacturing capabilities and is expanding into the retail and electric vehicle (EV) sectors for sustained growth.
Despite this strong financial performance and optimistic outlook, technical analysts suggest that the stock price shows a bearish trend, with a strong support level at ₹4875. If the stock closes below ₹4475, it could potentially decline to ₹4180 in the near term, as per independent analyst A R Ramachandran.
Investors interested in the bonus share issue should buy shares before the record date of November 25, 2024, to be eligible.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice. Please conduct your own research or consult with a financial advisor before making any investment decisions.
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