Shakti Pumps, one of India’s foremost manufacturers of solar pumps and motors, experienced a notable surge in its share price on April 2, 2023. The stock climbed 4.3% during intraday trading, reaching ₹1,011 per share. This upward momentum followed the announcement of a significant contract awarded by the Maharashtra Energy Development Agency (MEDA), marking a pivotal moment for the company.

Significant Contract Win

In a recent update to the stock exchanges, Shakti Pumps disclosed that it had received a Letter of Award from MEDA for the installation of 445 off-grid Solar Photovoltaic Water Pumping Systems (SPWPS) throughout Maharashtra. This project falls under Component-B of the PM-KUSUM scheme, which aims to enhance solar energy use in agriculture. The total value of this work order is approximately ₹12.42 crore, inclusive of GST.

• Contract Details:
  • 445 off-grid solar pumping systems
  • Value: ₹12.42 crore (inclusive of GST)
  • Scheme: PM-KUSUM

Expanding Order Book

As of the end of the December quarter, Shakti Pumps reported a robust order backlog of ₹20,700 million, which is expected to be fulfilled within the next year. During this quarter, the company also received a Letter of Empanelment for 25,000 pumps, valued at ₹7,543 million under the Magel Tyala Saur Krushi Pump Scheme in Maharashtra. Additionally, they secured an order for 3,174 pumps from the Haryana Renewable Energy Department (HAREDA), worth ₹1,163.6 million.

Market Leadership and Future Outlook

Shakti Pumps holds a commanding 25% share of the domestic solar pump market within the framework of the PM-KUSUM scheme, a government initiative aimed at revolutionizing India’s agricultural practices. The company’s diversification into schemes like the Magel Tyala Saur Krushi Pump Scheme positions it favorably for future growth. The Indian government anticipates the installation of over 14 lakh solar pumps under Component B and 35 lakh solar pumps under Component C.

Recent Developments

In a strategic move to bolster its operations, Shakti Pumps has invested an additional ₹60 million in its subsidiary, Shakti EV Mobility. The investment involved subscribing to 6 million equity shares at a face value of ₹10 each, raising the company’s consolidated stake in the subsidiary to ₹450 million. Shakti EV Mobility specializes in manufacturing electric vehicle motors and charger controllers.

A Strong Performer in the Stock Market

Shakti Pumps has shown remarkable resilience in the stock market, bouncing back with a 21.36% increase in March after facing a two-month downturn. This decline followed an impressive rally between March 2023 and December 2024, during which the stock soared by 1,483%.

Since November 25, shares have been trading ex-bonus following a 5:1 bonus share issuance. Over the past two years, the stock has appreciated by 1,368%, and in the last five years, it has delivered an astonishing 5,180% return.

In summary, Shakti Pumps continues to solidify its position as a leader in the solar pump market while expanding its operations into electric mobility, paving the way for a promising future in both renewable energy sectors.