Lower Circuit Alert & Rs 2,070 Crore Order Book: Multibagger Solar Stock To Keep Under Radar; PAT Jumps 472.8 Per Cent In 9MFY25

The stock gave multibagger returns of 1,425 per cent in 2 years and a whopping 2,400 per cent in 5 years.

On Monday, one of the Top Losers on BSE & NSE, shares of this multibagger solar pumps manufacturer hit a 5 per cent lower circuit to Rs 1,084.70 per share from its previous closing of Rs 1,141.75 per share. The stock gave multibagger returns of 479.4 per cent from its 52-week low of Rs 187.21 per share.

The buzzing stock name is Shakti Pumps (India) Limited (SPIL)

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 13,039 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.

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. After the bonus issue, the stock rallied 74.33 per cent. The stock gave multibagger returns of 1,425 per cent in 2 years and a whopping 2,400 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.