Rs 1,655 crore order book: Multibagger solar pumps stock; Board approves QIP issue at floor price Rs 965.96 per share, opened on July 2, 2025
The stock gave multibagger returns of 855 per cent in 2 years and a whopping 3,200 per cent in 5 years.
Shakti Pumps India Ltd's Board of Directors has approved a Qualified Institutional Placement (QIP) issue, which commenced on July 2, 2025, at a floor price of Rs 965.96 per share. This decision follows a special resolution passed on February 12, 2025, with the Treasury Committee formally approving the preliminary placement document and application form on July 2, 2025. The QIP aims to issue an unspecified number of equity shares to eligible qualified institutional buyers, adhering to Chapter VI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and relevant sections of the Companies Act, 2013.
Earlier, the company had secured a significant domestic order from the Maharashtra Energy Department Agency (MEDA) for the supply and installation of 4500 off-grid solar photovoltaic water pumping systems (SPWPS). This project, valued at approximately Rs 114.58 crore (inclusive of GST), falls under the MNRE Component-B of the PM-KUSUM scheme and will be executed at various locations across Maharashtra. The comprehensive work order includes the design, manufacturing, supply, transport, installation, testing, and commissioning of these systems, with a stipulated completion period of 90 days from the date of issuance of the work order.
About the Company
Shakti Pumps, a leading Indian manufacturer of pumps and motors for various applications like irrigation and domestic water supply, has been at the forefront of innovation with its well-regarded "Shakti" brand. Founded in 1982, they specialise in energy-efficient pumps, including solar options and manufacture a wide range of components in-house for complete solar pump solutions. Committed to sustainability and transforming agriculture, Shakti Pumps exports its products to over 100 countries and is India's first 5-star-rated pump manufacturer.
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The company has a market cap of over Rs 11,000 crore and as of March 31, 2025, the company has an unexecuted order book of Rs 1,655 crore. In Q4FY25, the company witnessed strong growth across key financial metrics. Revenue from Operations surged by 9.2 per cent YoY to Rs 665 crore, driven by robust order execution. Consequently, PAT witnessed a remarkable 22.2 per cent YoY growth to Rs 110 crore. This strong performance was further reflected in the FY25 results. Revenue jumped to Rs 2,516 crore, a substantial increase from Rs 1,371 crore in the same period last year, an increase of 84 per cent. Similarly, PAT soared to Rs 408 crore, a skyrocket of 187 per cent from Rs 142 crore in FY24.
In March 2025, Promoters bought 33,396 shares and FIIs bought 24,04,357 shares and increased their stake to 51.61 per cent and 5.16 per cent compared to December 2024. The shares of the company have a PE of 29x, an ROE of 43 per cent and an ROCE of 55 per cent. The stock gave multibagger returns of 855 per cent in 2 years and a whopping 3,200 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.