This smallcap water pump manufacturer stock with ₹1,800 crore order book hits 5% upper circuit; here’s why

Earlier on November 11, Shakti Pumps informed the exchanges that it has fixed Monday, November 25 as the record date for a bonus issue of shares in the 5:1 ratio. As a part of the bonus issue eligible shareholders will receive 5 new shares of Shakti Pumps for each share held by them.

Investors who owned at least one share of Shakti Pumps one day before the ex-date, Friday, November 22, are eligible to receive bonus shares. This is the first bonus issue by the small-cap company in more than ten years. Shakti Pump’s last bonus issue was announced in 2011. The company issued bonus shares in the 1:1 ratio in 2011, wherein the eligible shareholders received 1 bonus share of Shakti Pumps for every share they held.

Shakti Pumps’ consolidated revenue from operations for the September quarter of FY25 increased by 315.4% to ₹634.6 crore compared to ₹152.8 crore in the September quarter of FY24. The company’s consolidated profit-after-tax also increased multifold to ₹101.4 crore in Q2FY25 compared to ₹5.9 crore in Q2FY24.

Earnings Before Interest Taxes, Depreciation and Amortisation (EBITDA) for the September quarter increased by 878.4% to ₹148.7 crore compared to ₹15.2 crore in the corresponding quarter of the preceding fiscal year. The company’s EBITDA margin improved by 1,349 basis points to 23.4% in Q2FY25 compared to 10% in the year-ago period.

Shakti Pumps mentioned in its investor presentation that its outstanding order book stood at ₹1,800 crore as of September 30, 2024.

Shakti Pumps India Limited is a leading manufacturer of submersible pumps, electric control panels, stainless steel submersible pumps, and motors. The company markets its products in India and abroad under the brand name ‘Shakti’.