Dark horse stock of the day: Shakti Pumps surges 20% and hits the upper circuit

Shakti Pumps Limited, a prominent company engaged in the manufacturing of various types of pumps, experienced a significant increase in its share price today. The company is well-known for providing advanced water pumping solutions for a wide range of applications, including irrigation, horticulture, domestic water supply, and commercial and industrial use.

The stock opened trading at Rs 95.85 per share, marking a 3% increase compared to the previous day’s closing price of Rs 92.65 per share on the BSE. As of writing this article, the stock is trading at Rs 110.8 per share, representing an impressive gain of 20% from its previous closing price. It reached the upper circuit price limit of 20%, indicating strong demand, with no sellers willing to part with their shares.

Furthermore, it reached a 52-week high price of Rs 1108.35 per share today. Additionally, there is a significant increase in the trading volumes of the company’s stock today, which were 2.34 times higher than its average daily volumes.

The current market capitalization of the company stands at Rs 2,037 crore, and the stock has exhibited exceptional performance in recent periods, delivering an impressive multibagger return of 324% over the past three years.

Bagged an order worth of Rs 1,603 crore: 

The company has been granted an official Letter of Empanelment by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the supply of 50,000 Off-Grid Solar Photovoltaic Water Pumping Systems (SPWPS) pumps throughout the entire state of Maharashtra as part of Component-B within the PM-KUSUM scheme (Phase-III).

The total worth of this project, encompassing all 50,000 pumps, amounts to approximately Rs 1,603 crore, inclusive of GST. This project is scheduled for completion within a 24-month timeframe.

Business Overview: 

Shakti Pumps (India) Limited is an India-based company engaged in the manufacturing of pumps, motors, and spare parts. Its product range includes Submersible pumps, Solar Pumps, Vertical Multistage Centrifugal Pumps, Monoblock End Suction Pumps, Pressure Booster Pumps, Wastewater Pumps, and others.

The company also provides water pumping solutions for various applications, such as irrigation (flood and micro-irrigation), horticulture, domestic water supply, commercial and industrial applications, and more. Their product portfolio caters to a wide range of applications, including agriculture, irrigation, industrial processes, pressure boosting in high-rise buildings, rural/urban community water supply schemes, and waste and sewage water treatments. The company exports its products to over 100 countries worldwide.

Stock Price Chart (Monthly time frame) 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.