Shakti Pumps India shares soar 13%, take 3-day gains to 34%; here's why

Shares of Shakti Pumps (India) Ltd surged over 13 per cent in Monday’s trade on strong volumes, extending their three-day rally to 34 per cent, as the stock reacted to a series of fresh order wins. The stock rose 13.44 per cent to hit an intraday high of Rs 737.05, after gaining 14 per cent on Thursday and 3.49 per cent on Friday.

The company has been in focus after securing multiple orders under the PM-KUSUM scheme. In a stock exchange filing on Friday, Shakti Pumps said it had received a work order from Madhya Pradesh Urja Vikas Nigam Limited for 2,033 stand-alone off-grid DC solar photovoltaic water pumping systems across Madhya Pradesh under Component-B of the scheme. The order is valued at about Rs 71.25 crore, inclusive of GST, and is to be executed within 120 days.

On the same day, the company said it had also received an order from the Jharkhand Renewable Energy Development Agency for 1,200 solar water pumping systems to be installed at various locations across Jharkhand under Component-B of PM-KUSUM. The order value stood at around Rs 23.98 crore, inclusive of GST.

Earlier, on December 11, Shakti Pumps had received a letter of empanelment from Maharashtra State Electricity Distribution Company Limited for 16,025 off-grid DC solar photovoltaic water pumping systems of 3 HP, 5 HP and 7.5 HP across Maharashtra under the Magel Tyala Saur Krushi Pump Yojana and PM-KUSUM B scheme. The total value of this empanelment was about Rs 443.78 crore, inclusive of GST, with execution scheduled within 60 days from the issuance of the work order or notice to proceed.
Despite the sharp rally, the stock is off 47.27 per cent from its 52-week high of Rs 1,398 hit on January 9.

The Pithampur-based company reported a 4.42 per cent year-on-year increase in net profit for the quarter at Rs 96.80 crore, compared with Rs 92.70 crore in the corresponding quarter last year. Revenue rose 9.67 per cent year-on-year to Rs 622.50 crore from Rs 567.60 crore.

The company had earlier this year successfully closed its qualified institutions placement (QIP) issue, raising Rs 292.60 crore from institutional investors.