5:1 Bonus By Diesel Company: Midcap That Rose By 385% YTD; To Offer Big Reward; Strong Buy Recommendation

Shakti Pumps, a compressors, pumps and diesel engines-making company, is all set to reward investors with bonus issues for the second time since its listing. Last week, the stock jumped by a whopping 13% on BSE, as investors added the stock heavily to their portfolio ahead of the big reward. Shakti Pumps is a 2024 multi-bagger, and the consensus of recommendation on the stock is 'STRONG BUY'.

Shakti Pumps Share Price:

Last week, on Friday, the stock ended at Rs 4980.15 apiece, up by 1.4% on BSE with a market cap of Rs 9,977.78 crore. During the trading hours of October 11, the midcap touched a new 52-week high of Rs 5,151 apiece.

Shakti Pumps' weekly performance is up by Rs 560.55 or 12.66% on BSE. While in a month, the stock zoomed by Rs 732.30 or 17.20%. YTD, the stock skyrocketed by a whopping Rs 3,959.35 or 384.16%.

Shakti Pumps Bonus Issue:

The company has recommended the issue of Bonus Shares in the ratio of 5:1 i.e., 5 (Five) new fully paid up equity shares of Rs.10/- (Rupees Ten only) each for every 1 (One) existing fully paid up equity share of Rs.10/- (Rupees Ten only) each to the eligible Shareholders of the Company as on the record date.

It said, "Record Date to determine the eligible shareholders for Bonus Equity Shares shall be intimated in due course of time to the exchanges separately."

The company plans to complete its bonus issues on or before November 30, 2024.

This will be the second bonus issue by Shakti Pumps. The first time the company issued bonus shares was in April 2011, in a ratio 1:1. Hence, the upcoming bonus becomes its highest ever.

BUY Shakti Pumps Share Price?

As per Trendlyne data, the consensus recommendation from 1 analyst for Shakti Pumps (India) Ltd. is STRONG BUY. However, the 1-year average target price is set at Rs 1753 apiece.

It needs to be noted that Shakti Pumps' share price will be adjusted to the bonus shares ratio once it takes place.

According to Markets Mojo report, with a strong buy rating and positive trend, the company shows great potential for growth and success in the market. Further, it said, with its impressive performance and positive outlook, Shakti Pumps (India) Ltd is a company to watch out for in the compressors/pumps industry. Investors can expect to see continued growth and success from this midcap company.

About Shakti Pumps:

Shakti Pumps (India) Limited, a pioneer in manufacturing energy-efficient pumps and motors since 1982. The company is at the forefront of providing various renewable energy solutions, primarily for the agriculture sector. The company has over 1200 product portfolios, which have been indigenously developed by their Research & Development department.

With an investment of 3-4% of the company's net profit towards Research & Development, innovation is the backbone of their operations.

Shakti Pumps has a sprawling state-of-the-art manufacturing facility with an installed capacity of 5 lakh pumps per annum which is strategically situated in central India at Pithampur in the state of Madhya Pradesh. Over the years, Shakti Pumps has seen a steady growth trajectory and has become one of the leading pump exporters in India. The company exports its products to over 120 countries.