5:1 Bonus Issue: Solar Pump Manufacturer Posts Stellar Q2 Results – Profit Surges 1,600 Per cent, Operating Margin Jumps from 10 Per cent to 23 Per cent, Stock Hits Upper Circuit
The company’s shares have delivered an impressive return of over 330 per cent in just 1 year.
This Small-Cap solar pump manufacturer has delivered stellar results, showcasing its strong performance. The company specializes in manufacturing a diverse range of pumps and motors. Following this announcement, the shares have hit the upper circuit today.
As per the Quarterly Results in September 2024, Shakti Pumps (India) Ltd recorded a revenue of Rs 635 crore compared to Rs 153 crore representing a growth of around 315 per cent YoY. The operating profit for the period stood at Rs 149 crore with a margin of 23 per cent compared to Rs 15 crore with a margin of 10 per cent. The net profit stood at Rs 101 crore compared to a profit of Rs 6 crore representing an impressive growth of 1583 per cent YoY. Looking at the annual performance, the company generated a revenue of Rs 1371 crore in FY24, compared to Rs 968 crore in FY23. The operating profit for FY24 was Rs 225 crore, with a net profit of Rs 142 crore compared to a profit of Rs 24 crore.
Today, shares of Shakti Pumps (India) Ltd are locked into the upper circuit and currently are at around Rs 4474.95 per share. The company’s current market capitalization stands at Rs 8,965 crore. Additionally, the shares have delivered a multibagger return of over 330 per cent in the past 1 year.
The Board of Directors of Shakti Pumps (India) Ltd, during its meeting held on 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.
Business Overview
Shakti Pumps (India) Ltd 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 38.27 per cent. Foreign Institutional Investors (FIIs) have increased their stake from 2.32 per cent to 3.36 per cent.
Investors must keep this small-cap company on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.