5:1 Bonus Issue: Multibagger Solar Pump Manufacturer Hits Back-to-Back Upper Circuits After Announcing Bonus Shares; FIIs Purchased 3,10,544 Shares!
The company’s shares have delivered an impressive return of over 400 per cent in just 1 year.
The stock of this solar pump manufacturing company has been gaining continuous traction since the announcement of a bonus issue for its shareholders. Today, the stock surged by around 5 per cent, hitting the upper circuit once again. The ongoing rally reflects growing investor interest, driven by the company's recent 5:1 bonus share announcement, further boosting market sentiment.
The Board of Directors of Shakti Pumps (India) Limited, during its meeting held today, October 7, 2024, has approved the recommendation for the issuance of bonus shares at a ratio of 5:1. This means eligible shareholders will receive five (5) new fully paid-up equity shares of Rs 10 each for one (1) existing fully paid-up equity share of Rs 10 each they own. This recommendation is subject to the approval of the company’s members. The record date for determining the eligible shareholders for the bonus equity shares will be announced to the exchanges in due course.
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Currently, shares of Shakti Pumps (India) Limited are at around Rs 4678.20 per share. The company’s current market capitalization stands at Rs 9373 crore. Additionally, the shares have delivered a multibagger return of over 400 per cent in the past 1 year.
As per the Quarterly Results, in Q1 FY25, Shakti Pumps (India) Limited recorded a revenue of Rs 568 crore from Rs 113 crore. The operating profit for Q1 FY25 stood at Rs 136 crore. The net profit for Q1 FY25 stood at Rs 93 crore compared to a profit of Rs 1 crore last year same quarter. Looking at the annual performance, the company generated a revenue of Rs 1371 crore in FY24. The operating profit for FY24 was Rs 225 crore with a net profit of Rs 142 crore compared to a net profit of Rs 24 crore in FY23.
Shakti Pumps (India) Limited is engaged in the manufacturing of a diverse range of pumps and motors. The company provides advanced water pumping solutions for various applications, including irrigation, horticulture, domestic water supply, and commercial and industrial uses. The brand "Shakti" enjoys strong recognition and acceptance in both domestic and international markets.
As per the current shareholding pattern, promoters own 51.57 per cent, while public investors hold 39.25 per cent. Foreign Institutional Investors (FIIs) have increased their stake from 0.77 per cent to 2.32 per cent by purchasing 3,10,544 shares.
Investors must keep this Small-Cap company on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.