Shakti Pumps Sees 13% Stock Surge After Landing Major Solar Pump Order

Big Win for Shakti Pumps

Shares of Shakti Pumps, a leading industrial machinery maker, jumped over 13% on December 11. This surge came after the company announced it had received a significant order from the Maharashtra State Electricity Distribution Company (MSEDCL).

Details of the Order

The order is for 16,025 off-grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) pumps, which will be used across the state of Maharashtra. The total value of this order is approximately Rs 443.78 crore, including GST. Shakti Pumps will be responsible for designing, manufacturing, supplying, transporting, installing, testing, and commissioning these solar-powered water pumping systems.

Impact on Share Price

Following the announcement, the company's shares rose to Rs 624.75 per share, breaking an eight-session losing streak. This significant rise comes on the heels of the stock hitting a 52-week low just a day prior. Despite recent gains, the stock has still experienced a decline of around 17% over the past month and 36% over the past six months.

Company Performance

Shakti Pumps has a market capitalization of over Rs 7,690 crore and a P/E ratio of over 16. The company is expected to complete the order within 60 days.

This order is part of the Magel Tyala Saur Krushi Pump Yojana/PM Kusum B Scheme, aiming to promote the use of solar energy in agriculture. The surge in Shakti Pumps' stock reflects the positive impact of this order on the company's growth prospects in the renewable energy sector.

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