This Multibagger Stock Gained 1,260% in 2 Years! Promoters Buying More – Is It the Next Big Thing?
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🚀 This Multibagger Stock Gained 1,260% in 2 Years! Promoters Buying More – Is It the Next Big Thing? 🔥
Shakti Pumps (India) Limited has recently garnered significant attention in the stock market, achieving a 5% upper circuit on March 18, 2025, with shares reaching ₹959.20 apiece, up from the previous close of ₹913.55. This surge marks a remarkable recovery of over 350% from its 52-week low of ₹211.73 per share. The trading session also witnessed a notable increase in volume, with transactions more than tripling on the Bombay Stock Exchange (BSE).
Strategic Expansion and New Ventures
In a strategic move to bolster its renewable energy portfolio, Shakti Pumps has acquired 113 acres in Pithampur, Madhya Pradesh, sanctioned by the Madhya Pradesh Industrial Development Corporation Limited (MPIDC). This land is earmarked for their wholly-owned subsidiary, Shakti Energy Solutions Limited, to establish a state-of-the-art solar cell and photovoltaic (PV) module manufacturing facility, utilizing wafers as input material. This initiative aligns with global sustainability trends and positions the company to meet the increasing demand for solar energy solutions.
Complementing this expansion, the company secured a domestic work order from the Maharashtra Energy Development Agency (MEDA) valued at ₹23.91 crore under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme. The project entails the design, manufacture, supply, installation, testing, and commissioning of 877 Solar Photovoltaic Water Pumping Systems (SPWPS) across Maharashtra, with a completion timeline of 120 days.
Expanding its footprint in the electric vehicle (EV) sector, Shakti Pumps has infused an additional ₹6 crore into its wholly-owned subsidiary, Shakti EV Mobility Private Limited, through the subscription of 6 million equity shares. This investment elevates the total consolidated investment to ₹45 crore, aiming to enhance the subsidiary's operations in manufacturing electric vehicle motors and chargers. As of March 31, 2024, Shakti EV Mobility reported assets totaling ₹3,723.92 lakh and a turnover of ₹430.09 lakh, reflecting its growing presence in the EV component market.
Financial Performance and Market Position
Shakti Pumps has demonstrated robust financial performance in recent quarters. Below is a summary of the company's results for the last four quarters:
| Quarter | Revenue (₹ Crore) | PAT (₹ Crore) | Margin (%) |
|---|---|---|---|
| Q3 FY25 | 648.80 | 104.00 | 16.0% |
| Q2 FY25 | 602.10 | 94.30 | 15.7% |
| Q1 FY25 | 600.00 | 90.20 | 15.0% |
| Q4 FY24 | 580.50 | 88.10 | 15.2% |
As of December 31, 2024, the company's unexecuted order book stood at ₹2,070 crore, indicating a strong pipeline of future projects.
Promoter Confidence and Shareholder Value
The promoters' recent acquisition of 33,400 shares in February and March 2025 signals strong confidence in the company's future prospects. Additionally, the company issued bonus shares in a 5:1 ratio (five new fully paid-up equity shares for every existing share), with the ex-date on November 25, 2024. This move enhances liquidity and makes the stock more accessible to a broader investor base.
Company Overview and Market Presence
Established in 1982, Shakti Pumps has evolved into a leading Indian manufacturer of pumps and motors, catering to applications such as irrigation and domestic water supply. The company specializes in energy-efficient pumps, including solar-powered options, and manufactures a wide range of components in-house to provide comprehensive solar pump solutions. With a market capitalization exceeding ₹11,000 crore, the company continues to strengthen its position in both domestic and international markets.
Stock Performance and Investor Considerations
Over the past two years, Shakti Pumps' stock has delivered multibagger returns of 1,260% and an astounding 4,960% over five years. While such returns are impressive, investors should consider inherent risks associated with market volatility and sector-specific challenges.
Conclusion
Shakti Pumps (India) Limited's strategic initiatives in renewable energy and electric mobility, coupled with robust financial performance, have positioned the company as a formidable player in the industry. The promoters' increased stake and the issuance of bonus shares further underscore the company's commitment to enhancing shareholder value. As the global focus shifts towards sustainable solutions, Shakti Pumps' integrated approach and diversified portfolio are likely to drive its growth in the coming years.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult a financial advisor before making investment decisions.
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Disclaimer: The stock price targets and analysis presented are based on publicly available information from top brokerage firms and may change over time. Always consult with your financial advisor before making any investment decisions. The opinions expressed in this article are for informational purposes only and do not constitute financial advice.
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