Shakti Pumps: 143% Growth, EV Expansion Makes It a Multibagger Pick

1. Company Overview

Shakti Pumps (India) Limited (BSE: 531431 | NSE: SHAKTIPUMP) is a leading manufacturer of solar-powered and submersible pumps, serving agriculture, industrial, and government projects. The company has established a strong presence in over 100 countries and holds a significant 25% market share in solar pumps under the PM KUSUM Scheme.

2. Q3 FY25 Financial Performance

Metric	Q3 FY25	Q3 FY24	YoY Growth	Q2 FY25	QoQ Growth
Revenue	₹6,488 Cr	₹4,956 Cr	+30.9%	₹6,346 Cr	+2.2%
EBITDA	₹1,544 Cr	₹710 Cr	+117.6%	₹1,487 Cr	+3.8%
PAT	₹1,040 Cr	₹452 Cr	+130.2%	₹1,014 Cr	+2.6%
EPS (₹)	8.7	4.1	+111.1%	8.4	+2.6%

9M FY25 Performance Highlights

Revenue surged 143.1% YoY to ₹18,509 Cr
EBITDA margins expanded by 948 bps to 23.8%
PAT grew by 472.8% YoY to ₹2,981 Cr

3. Future Growth Plans & Strategic Expansions

A. Solar Business Expansion

PM Surya Ghar: Muft Bijli Yojana with ₹75,000 Cr outlay
Strong government focus on irrigation & solar integration

B. Electric Vehicle (EV) Segment

Shakti EV Mobility Pvt. Ltd. developing EV components
₹114.3 Cr investment approved over 5 years
Patent granted for Permanent Magnet Rotor

C. International Expansion

Exports grew 58% YoY to ₹3,119 Cr in 9MFY25
$35.3 million Uganda contract secured
Part of International Solar Alliance (ISA)

4. Capital Expenditure & Strategic Rationale

Solar Pumping & Rooftop

Expanding production under PM-KUSUM & Surya Ghar schemes

EV Segment

₹114.3 Cr investment over 5 years

Manufacturing

Doubling production capacity

Backward Integration

In-house component manufacturing

5. Competitive Landscape & Risks

Competitive Edge

Market Leader: ~25% share in solar pump segment
Strong Export Growth: Present in 100+ countries
Robust R&D: 15 granted patents, 29 patents filed
Government Support: Benefits from multiple schemes

Key Risks

Government Policy Changes impact on PM-KUSUM revenues
Rising Raw Material Costs affecting margins
High Working Capital Cycle management
Increased Competition in solar & EV sectors

6. Valuation & Investment Thesis

Market Cap

₹11,931 Cr

Current Price

₹992

52W High/Low

₹1,398 / ₹187

P/E Ratio

30.8

ROCE

31.4%

ROE

24.2%

Debt

₹162 Cr

Reserves

₹922 Cr

Investment Rationale

Strong Revenue Growth: 161% growth driven by government projects
Margin Expansion through in-house manufacturing
EV Market Potential with early-mover advantage
Export Growth with rising international demand

Target Price

₹1,300 – ₹1,500 (12-month horizon)

7. Conclusion

Investment Strengths

Strong growth momentum from government-supported solar & irrigation projects
Diversified revenue streams through strategic EV market entry
Robust export performance with significant international presence
Vertical integration leading to improved cost efficiency

Growth Metrics

Sales Growth

161%

Profit Growth

614%

Key Risk Factors

Heavy dependency on government policies and schemes
Raw material price volatility impact on margins
Working capital constraints in large projects
Competitive pressure in both solar and EV segments

Investment Verdict

Strong growth stock with significant upside potential, supported by:

Robust order book visibility through government projects
Strategic expansion into high-growth EV segment
Strong export market penetration
Improving operational efficiency through backward integration

8. Disclaimer

📢 This report is for informational purposes only and should not be considered as investment advice. The information contained herein is based on sources believed to be reliable, but no guarantee is made as to its accuracy or completeness.

Investors should:

Conduct their own research and due diligence
Consider their investment objectives and risk tolerance
Consult with financial advisors before making investment decisions
Be aware that past performance is not indicative of future results

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.