Rs 2,070 Crore Order Book: Multibagger Solar Stock Turns Green After Additional Tie-Up for DCR Cell-Based Solar Module for FY 2025-26
The stock gave multibagger returns of 390 per cent from its 52-week low of Rs 187.21 per share.
On Monday, shares of this multibagger solar stock jumped 5.73 per cent to Rs 919 per share from its intraday low of Rs 869.15 per share. The stock gave multibagger returns of 390 per cent from its 52-week low of Rs 187.21 per share.
The buzzing stock name is Shakti Pumps (India) Limited (SPIL)
The recent surge in Shakti Pumps (India) Limited's stock price can be attributed to the announcement of a new partnership with ReNew Photovoltaic Private Limited for the supply of DCR cell-based solar modules, valued at Rs 1,300 crore. This deal supplements their existing collaborations with Mundra Solar PV Limited (Adani) and Premier Energies Ltd., also for DCR cell-based solar modules. The company's expanded network of suppliers is anticipated to significantly boost growth and solidify Shakti Pumps' leading position in the market, demonstrating its commitment to expansion and sustained success.
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 specialize 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.
The company has a market cap of Rs 11,033 crore and as of December 31, 2024, the company has an unexecuted order book of Rs 2,070 crore. In Q3FY25, the company witnessed strong growth across key financial metrics. Revenue from Operations surged by 30.9 per cent YoY to Rs 648.80 crore, driven by robust order execution. This translated into a significant EBITDA growth of 117.6 per cent YoY to Rs 154.40 crore, with margins expanding by 938 bps to 23.8 per cent. Consequently, PAT witnessed a remarkable 130.2 per cent YoY growth to Rs 104 crore, resulting in a healthy 16 per cent margin. This strong performance was further reflected in the 9MFY25 results. Revenue jumped to Rs. 1,850.90 crore, a substantial increase from Rs 761.50 crore in the same period last year. EBITDA grew significantly to Rs 439 crore, with margins expanding to 23.7 per cent. Similarly, PAT soared to Rs 298.10 crore, a remarkable YoY growth, with margins improving significantly to 16.1 per cent.
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The Board of Directors approved raising up to Rs 400 crore through a Qualified Institutions Placement (QIP) in one or more tranches, subject to necessary approvals. Additionally, during the quarter, the company invested Rs 7.80 crore in Shakti Energy Solutions Pvt Ltd. (SESPL), its wholly owned subsidiary engaged in manufacturing solar structures. This investment, made in two tranches through the subscription of 78 Mn equity shares at Rs. 1 each, aims to support SESPL's expansion plans.
Furthermore, the shares of the company ex-traded bonus Shares in the ratio of 5:1, i.e., 5 new fully paid-up equity shares for every 1 existing fully paid-up equity share. The ex-date for bonus shares was Monday, November 25, 2024. The stock gave multibagger returns of 1,230 per cent in 2 years and a whopping 2,000 per cent in 5 years. Investors should keep an eye on this solar pump stock.
Disclaimer: The article is for informational purposes only and not investment advice.