Shakti Pumps shares surge 12% on Rs 236 crore Maharashtra solar pump order

The company received a Letter of Empanelment for the supply of 10,000 off-grid Solar Photovoltaic Water Pumping Systems (SPWPS) under the Magel Tyala Saur Krushi Pump Yojana across Maharashtra.

The order covers solar water pumps with capacities of 3 HP, 5 HP and 7.5 HP, with the total contract value pegged at Rs 216.64 crore, excluding GST, and approximately Rs 235.92 crore including GST.

Under the contract, Shakti Pumps will be responsible for the design, manufacture, supply, transportation, installation, testing and commissioning of the solar-powered pumping systems.

The order must be executed within 60 days from the issuance of the Work Order or Notice to Proceed (NTP), making timely execution a key focus for the company.

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The company clarified that a domestic entity was awarded the order and that the promoter or promoter group has no interest in MSEDCL. It also does not fall under related-party transactions.
The large order strengthens Shakti Pumps’ position in Maharashtra’s renewable-energy and agricultural irrigation segments as solar-powered irrigation adoption grows.Stock reaction: Following the announcement, Shakti Pumps shares climbed as much as 11.71% to Rs 522.55 in Thursday’s session, reflecting strong investor interest in the sizeable order win.

Share Price and Technical Indicators

Following today’s 12% surge, Shakti Pumps’ market capitalisation stood at around Rs 6,255 crore. The stock’s 52-week high is Rs 915.

On the valuation front, the company’s price-to-earnings (P/E) ratio stands at 27.49, while its price-to-book (P/B) ratio is 3.42.

From a technical perspective, Shakti Pumps is currently trading below four of its eight key Simple Moving Averages (SMAs), indicating a mixed trend across different time frames.

Disclosure: “This article has been written by Ritesh Presswala, who is not a SEBI-registered Research Analyst or an Investment Adviser. Ritesh Presswala and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.”