5:1 Bonus Shares: November 25 Record Date; Right Time To Buy To Be Eligible?

Since 1982, Shakti Pumps (India) Limited has been a leader in the production of energy-efficient pumps and motors. With more than thirty years of expertise in the pumping sector, Shakti Pumps is one of the world's most quality-conscious pump manufacturers. The largest manufacturer and supplier of pumps and motors in the world is Shakti Pumps India Ltd. The majority of the products in the company's portfolio are used for things like firefighting, waste and sewage water treatment, industrial applications and processes, pressure bolstering in high-rise structures, rural and urban community water supply systems, and agriculture.

Shakti Pumps Bonus Shares

"This is further to our letters dated October 7, 2024 and November 11, 2024 intimating the approval by the members for issue of bonus shares in the ratio of 5:1. In this regard, we wish to inform that the Company has fixed Monday, November 25, 2024 as the Record Date for the purpose of determining the equity shareholders of the Company eligible for bonus equity shares of the Company," said the company in a stock exchange filing.

Shakti Pumps (India) Financials

The financial results for the quarter and a half-year that ended on September 30, 2024, were released by Shakti Pumps (India) Limited (SPIL). The reported revenue from operations increased from Rs. 152.8 Crores in Q2FY24 to Rs. 634.6 Crores. EBITDA increased from Rs. 15.2 crores in the same quarter of the previous fiscal year to Rs. 148.7 crores in Q2FY25. Additionally, EBITDA margins increased dramatically from 10.0% in Q2FY24 to 23.4% in Q2FY25. PAT grew from Rs. 5.9 Crores in Q2FY24 to Rs. 101.4 Crores during the quarter under review. PAT margin increased from 3.8% in Q2FY24 to 16.0% in the September 2024 quarter.

Shakti Pumps (India) Limited Chairman, Mr. Dinesh Patidar said, "We are delighted to announce another exceptional quarter for our company, showcasing significant revenue expansion and a marked increase in profitability. This has also translated into a remarkable first half of the financial year. Our achievements are a direct result of faster execution of orders within both the domestic and international spheres. Profitability margins also witnessed a significant expansion which can be mainly attributed to the realization of economies of scale, which was facilitated by increased operational activities during the quarter."

"Our order inflow continues to remain robust with the outstanding order book stood at around Rs. 1,800 Crores as on September 2024. Given our leadership position in the PM KUSUM Scheme, we are confident that we will continue to witness an influx of orders, which will play a pivotal role in our sustained growth," he added.

"To conclude, given our robust order book, in conjunction with our consistent success in winning more orders, we are confident that we will deliver better than anticipated results this year. This confidence also stems from our ability to execute the current orders efficiently, backed by our advanced backward-integrated manufacturing capabilities. Parallelly, we continue to remain focused on expanding our presence in retail business as well as the EV business, which would contribute to a sustained financial performance in the future," Dinesh Patidar commented.

Shakti Pumps Share Price Target

"Shakti Pumps stock price is bearish on the Daily charts with strong support at 4875. A Daily close below support of 4475 could lead to a target of 4180 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

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