Shares of Shakti Pumps (India) Ltd. jumped 8% on Friday, fueled by a hefty Rs 258 crore contract win from the Haryana Renewable Energy Department (HAREDA).
This marks the second order under the KUSUM-3 scheme for Shakti Pumps.
The company will supply, install, and commission 6,408 solar water pumping systems across Haryana within 90 days. This project aligns with the government’s push for clean energy adoption in agriculture.
About Shakti Pumps
Shakti Pumps (NSE: SHAKTIPUMP) is a leading manufacturer of submersible pumps and solar water pumping systems, catering primarily to the agricultural sector.
Their solar water pumping systems offer a reliable and cost-effective alternative to traditional diesel pumps for farmers.
The company boasts a strong presence in India with a wide distribution network and a loyal customer base.
This latest contract win underscores Shakti Pumps’ dominant position in the burgeoning solar water pumping market.
The KUSUM scheme, aimed at promoting off-grid solar solutions for farmers, presents a lucrative opportunity for the company.
Impact on Shakti Pumps
- The deal significantly bolsters Shakti Pumps’ order book for the current fiscal year, now exceeding Rs 900 crore.
- Reinforces the company’s position as a leader in the solar water pumping space, particularly under government schemes like KUSUM.
- Expected to boost revenue and profitability in the coming quarters.
- The KUSUM scheme offers significant growth opportunities for Shakti Pumps, with the government aiming to install 2 million solar water pumps by 2027.
- Continued focus on technological innovation and expanding its product portfolio will be crucial for sustained success.
With a robust order book and increasing focus on green energy initiatives, Shakti Pumps is well-positioned for sustained growth in the coming years.
Shakti Pumps’ continuous order wins and focus on renewable energy solutions bode well for the company’s future prospects,” said a Mumbai-based analyst.
“The stock’s recent surge reflects investor confidence in the company’s ability to capitalize on the growing demand for solar water pumps.”
While the near-term outlook appears promising, factors like potential policy changes and competition from other players could impact the company’s performance.
Investors should closely monitor these developments and conduct thorough due diligence before making investment decisions.
Disclaimer: This analysis is for informational purposes only and should not be taken as investment advice. Investors are advised to conduct their own due diligence before making any investment decisions.