Regardless of the bruising selloff, institutional cash is betting huge. In July, Shakti raised ₹292 crore by a QIP at ₹918 per share, backed by PineBridge, LIC MF, and Financial institution of India MF. The funds will assist construct a 2.2 GW photo voltaic DCR cell and PV module plant in Pithampur, Madhya Pradesh, signaling long-term growth whilst near-term inventory momentum stalls.
“After delivering round 6x returns in 2025, Shakti has been in a consolidation part just lately. With over 25% market share in a burgeoning business which presents a multi-year run, we consider there may be plenty of steam left on this as but,” Pawan Bharaddia, Co-founder and CIO at Equitree Capital, whose fund is an investor in Shakti, informed ET Markets.
Bharaddia highlighted the corporate’s dominance within the PM Kusum Yojana, the place Shakti instructions an estimated 25% market share in main beneficiary states. “An engineering firm which boasts of over 16 patents and enterprise visibility to compound at 25-30% over the following few years, presents a compelling funding alternative buying and selling at its 10yr median PE ~ 23x FY26 estimated PAT,” he added.
The PM Kusum Yojana stays a pivotal development driver, with solely a fraction of the federal government’s multi-year goal put in thus far, signaling large untapped potential.
Nevertheless, cracks are displaying within the close to time period. Within the June quarter, income development slowed to only 9.7% whereas PAT development decelerated to 4.5% as EBITDA margins declined 87 foundation factors to 23.1%.”Given the substantial worth correction, strong institutional assist, sturdy order e-book, and the structural alternatives supplied by the PM Kusum Yojana, Shakti Pumps might be a horny guess for buyers with a medium to long run horizon, whereas being attentive to close to time period development moderation and execution dangers,” mentioned Om Ghawalkar, Market Analyst at Share.Market.Additionally Learn | 7 multibagger shares that FIIs are hoarding in 2025. Are you lacking out?
Technical Actuality Test
Ghawalkar’s technical evaluation reveals a blended image: “Shakti Pumps at the moment exhibits weak momentum, because the inventory has underperformed relative to broader indices, signaling restricted worth power within the close to time period. However, it earns a robust rating on high quality, underpinned by wholesome financials, robust steadiness sheet administration, and operational effectivity.”
The analyst famous the corporate demonstrates reasonable volatility, reflecting publicity to cyclical demand from agriculture and renewable vitality markets, whereas worth and sentiment metrics stay difficult to gauge as a consequence of restricted analyst protection.
Shakti’s strategic pivot past its core pump enterprise is gaining traction. “Along with the Kusum scheme, diversification into EV motors and photo voltaic rooftop options mirror a well-defined technique to seize rising alternatives. These initiatives not solely improve long-term development visibility but in addition de-risk the enterprise mannequin, positioning the corporate to unlock vital worth over time,” Bharaddia defined.
The current QIP participation by home mutual funds and rising FII stake additional endorse the business chief’s potential, with good cash betting on a multi-year structural alternative regardless of the present turbulence.
For buyers courageous sufficient to abdomen the volatility, Shakti Pumps presents a traditional contrarian play—a high quality enterprise buying and selling at cheap valuations after a pointy correction, backed by institutional confidence and positioned in a dawn sector with authorities tailwinds.
