Q4 Financial Highlights:

► QoQ revenue growth        :22.9%

► QoQ EBIDTA growth         :84.2%

► QoQ PAT growth               :98.4%

► QoQ EPS growth               :97.9%

Positives:

► High quality energy efficient stainless-steel pumps with 30-40% less energy consumption.

► ~40% more output compared to cast iron pumps.

► 3 Year Compounded profit growth rate of 23%

► EPS increased from 13.13 (Mar 23) to huge 70.73 (Mar 24).

► Operating Profit Margin increased from 7% (Mar 23) to 16% (Mar24)

► Order book grew by 42% as it increased to 138.23 Cr (May 24) from 97.49 Cr (May 23).

► Reserves of 736 Cr against the debt of only 83 Cr.

Negatives:

► Almost 5% decrease in promoter holding (56% to 51%) in the last quarter.

Product applications:

The products of the company have applications in the following fields:

►Solar-Pumps ranging from 0.5 HP to 300 HP that are simple to operate with remote monitoring system).

►Agriculture-For agricultural needs like irrigation pumps, solar pumping solutions agricultural sprinkler system.

►Commercial-Used in hotels, corporates, malls, high rises buildings, commercial premises where heavy pressure and boosting is required.

►Domestic- For domestic needs of bungalows, high-rise buildings, housing complexes and apartment.

►Industrial-Used in industries for variety of purposes such as fire fighting, sewage, heating & cooling of systems, washing, storage etc.

►Sewage & Drainage- For draining flood water from various areas like basements, car parks, empty cesspools to managing sewage in a water treatment plant.

Future Prospects: Solar Pumping Systems the need of the hour as solar-powered pump is a pump running on solar energy generated by photovoltaic panels or the radiated thermal energy available from collected sunlight as opposed to grid electricity or diesel run water pumps.

                          The operation of solar powered pumps is more economical mainly due to the lower operation and maintenance costs and has less environmental impact than pumps powered by an internal combustion engine. The government is also supporting the installation of Solar Pumping Systems and Shakti Pumps is one of the major beneficiary. This puts Shakti Pumps in win-win position aided by the strong industry tailwinds.

The Multibagger takeaway:

                    Shakti Pumps is a leading Indian manufacturer of energy-efficient pumps and motors and this company is well prepared for significant growth and innovation in the coming years. With a strong emphasis on sustainability and technological advancement, Shakti Pumps is expanding its product portfolio to include solar-powered solutions, addressing the increasing demand for renewable energy sources in agriculture and industry. The company’s focus on international markets, along with its robust R&D capabilities, positions it well to capitalize on the global shift towards energy efficiency and green technologies.

               As India continues to prioritize sustainable development and energy conservation, Shakti Pumps is set to play a pivotal role in transforming the water management landscape, both domestically and globally. Investors can take position in this rapidly growing business slowly by doing the monthly SIPs in this stock.