Shares of Shakti Pumps, a key player in India's solar pump and motor manufacturing industry, saw a temporary pause on Friday, October 4, after experiencing a strong 15.76% surge over the last three trading days, reaching ₹4,708 per share. Despite being locked in the upper circuit for three consecutive sessions, the stock declined today, dipping to a low of ₹4,506.75 on the NSE, which marks a nearly 5% drop from its previous close.
Shakti Pumps has been one of the standout performers in share market investment, consistently delivering exceptional returns. In 2024 alone, the stock has soared by 357%, and in the past year, it has gained nearly 450%, offering multibagger returns to investors.
The company's robust position in the solar pumps and motors sector, along with its steady growth, has made it a popular choice for those looking to buy shares online and engage in long-term share market investment strategies.
The recent uptick in the share price was largely driven by the company's September 30 announcement regarding the potential issue of bonus shares. This news renewed investor interest, pushing the stock price upward. The board of directors is set to meet on October 7 to discuss a 5:1 bonus share issue, where shareholders would receive five new equity shares for every existing share at a face value of ₹10.
If approved, this will be Shakti Pumps' first-ever bonus issue, further boosting its appeal to investors involved in share market investment. Such corporate actions typically enhance liquidity and make shares more accessible to a wider range of investors, particularly those who buy shares online.
Shakti Pumps has showcased impressive financial results for the June 2024 quarter. The company's revenue surged to ₹567.6 crore, up from ₹113.1 crore in Q1 FY24. Additionally, its EBITDA jumped significantly to ₹135.9 crore from ₹7.9 crore during the same period last year, with the EBITDA margin expanding to 23.9% from 7%.
In terms of profit after tax (PAT), the company reported ₹92.6 crore for Q1 FY25, a massive leap from ₹1 crore in the corresponding quarter of FY24. This indicates strong profitability, which is likely to attract further share market investment. Investors keen on buying shares online would notice the PAT margin's growth from 0.9% to 16.3%, further solidifying the company's appeal.
Shakti Pumps has solidified its market presence as a leading manufacturer in the Indian pump industry, commanding a significant 25% share of the domestic solar pump market under the PM KUSUM scheme. This government initiative aims to promote solar-powered agriculture, which aligns with India's broader sustainable energy goals.
The company currently has an order book worth ₹2,300 crore, highlighting its strong growth trajectory. With favourable government policies such as subsidised electricity and support for solar water pumps, Shakti Pumps is well-positioned to benefit from continued demand in the agricultural sector.
Despite the recent cooling in its share price, analysts remain optimistic about the company's long-term potential, especially for those focusing on share market investment. The upcoming board decision on the bonus share issue could be a catalyst for further stock appreciation. Investors looking to buy shares online may find this an opportune moment to enter the stock, considering its strong fundamentals and growth prospects.
Additionally, the consistent demand for solar pumps in India, driven by falling groundwater levels and increasing agricultural needs, positions Shakti Pumps favourably in the market. This makes it an attractive option for investors who prioritise sustainable and long-term share market investment strategies.
Shakti Pumps' temporary pause in its stock price, following a remarkable 16% rally, offers a moment of reflection for investors. With a robust financial performance, a potential bonus share issue on the horizon, and a strong foothold in the solar pump sector, the company remains an appealing choice for those engaged in share market investment.
For individuals looking to buy shares online, Shakti Pumps represents a solid opportunity backed by consistent growth and strategic market positioning.
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