Mumbai: Shakti Pumps India Limited’s shares rose sharply on Monday, December 15, gaining over 14 percent and trading at Rs 741. The stock had closed at Rs 650 last Friday. Over the past three trading sessions, Shakti Pumps shares have given investors a return of more than 35 percent.
Reason for the Surge
The main reason behind this strong rally is the large orders the company has recently received. Last Friday, Shakti Pumps announced that it got several orders under the PM KUSUM scheme. This news attracted a lot of attention from investors, including retail buyers, mutual funds, and foreign institutional investors (FIIs).
Details of the Orders
The first big order came from Madhya Pradesh. The MP Urja Vikas Nigam Limited gave Shakti Pumps the task of installing 2,033 off-grid DC solar water pump systems. The total value of this order is Rs 71.25 crore.
The second order came from Jharkhand. The Jharkhand Renewable Energy Development Agency gave an order worth Rs 23.98 crore for 1,200 solar water pumping systems.
The third order is from Maharashtra. The Maharashtra State Electricity Distribution Company Limited assigned Shakti Pumps the work of installing 16,025 off-grid DC solar water pumping systems, with a total value of Rs 443.78 crore.
Interest from Mutual Funds and FIIs
Due to the recent surge, Shakti Pumps’ market capitalization has reached Rs 9,079 crore. The company mainly provides solar-based motor pumps along with compressors, pumps, and diesel engines.
The stock has attracted interest from retail investors, FIIs, and mutual funds. After the September quarter, FII holdings in Shakti Pumps increased to 5.60 percent from 5.06 percent in June. Mutual funds now hold 6.59 percent, up from 4.71 percent in the previous quarter.
The combination of big government-backed orders and growing institutional interest has made Shakti Pumps one of the most watched stocks in the market currently.
Disclaimer: This content is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research or consult a professional before making investment decisions.
