5:1 Bonus Share & Rs 2,070 Crore Order Book: Solar Company Invests Rs 6,00,00,000 In Its EV-Subsidiary For Business Expansion
The stock gave multibagger returns of 1,130 per cent in 2 years and a whopping 2,200 per cent in 5 years.
Shakti Pumps (India) Ltd has further invested in its wholly owned subsidiary, Shakti EV Mobility Private Limited, by subscribing to 60,00,000 equity shares at Rs 10 each, totalling Rs 6 crore. This investment brings the consolidated investment in Shakti EV Mobility to Rs 45 crore. Shakti EV Mobility, formerly Shakti Green Industries, was incorporated on December 16, 2021, and focuses on manufacturing electric vehicle motors and chargers. As of March 31, 2024, it had total assets of Rs 3,723.92 lakh and a turnover of Rs 430.09 lakh. This infusion of capital aims to expand the subsidiary's operations within the electric vehicle component manufacturing sector.
As a wholly owned subsidiary, Shakti EV Mobility is a related party, but this specific equity subscription does not constitute a related party transaction requiring an arm's length assessment. The investment, made in exchange for equity shares, was completed on the same day without requiring any governmental or regulatory approvals. Shakti EV Mobility is engaged in the production of motors for various electric vehicles, including two, three and four-wheelers, as well as specialized vehicles, and also manufactures EV chargers. The company operates exclusively in India, and this investment is intended to bolster its growth and market presence in the electric mobility sector.
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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 over Rs 10,000 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. 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. Similarly, PAT soared to Rs 298.10 crore, a remarkable YoY growth, with margins improving significantly to 16.1 per cent.
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 1,130 per cent in 2 years and a whopping 2,200 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.