Rs 800 crore order book and 300 per cent returns: This multibagger pump manufacturer bags new order worth Rs 149.71 crore!

Shares of the company gained more than 350 per cent in the last three years.

Shakti Pumps (India) Limited informed in the exchange filing that the company has received a letter of an award worth Rs 149.71 crore under the PM- KUSUM 3 scheme from Ajmer Viduyt Vitran Nigam Limited. The order for implementation of grid-connected Solar Water pumping System.

The company recently also received a letter of an award under the PM- KUSUM 3 scheme under component B from the Department of Agriculture, Uttar Pradesh for 10,000 pumps. The total amount of the work order is for around Rs 293 crores. The order is for the supply, installation and commissioning of solar water pumping systems.

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Shakti Pumps is primarily engaged in the manufacturing of pumps and motors of various kinds. It also offers advanced water pumping solutions to a wide range of applications such as irrigation, horticulture, domestic water supply, and commercial and industrial applications. Its brand "Shakti" is well-received in the domestic and international markets.

In the recent quarter, the company posted weak Quarterly Results. The revenue of the company for Q1FY24 stood at Rs 113.06 crore which decreased by 55.57 per cent on a YoY basis. The operating profit of the company stood at Rs 8.46 crore, while the PAT of the company stood at Rs 1.00 crore, representing a decrease of 88.6 per cent YoY.

The company has a ROCE of 10.7 per cent and an ROE of 5.95 per cent with a market capitalisation of Rs 1,683 crore. In the last three years, the shares of the company have delivered multibagger returns of over 300 per cent returns. The company has an order book of Rs 800.71 crore.

Investors should keep a close eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.