🧵 At a Glance
Shakti Pumps went from a loss-making traditional pump-maker to a solar-powered superstar. With a 5-year profit CAGR of 99%, 55% ROCE, and a ₹114 Cr government solar order just last month, the company is flexing harder than a Bollywood gym selfie. But with rising debtors, 9.8x P/BV, and margin volatility, is the pump running dry?
1. 🎬 Introduction – From Borewell to Boardrooms
Once a sleepy pump manufacturer from Pithampur, Shakti Pumps today features in investor decks next to solar giants. Why?
- 5x revenue in 5 years
- ₹2,500+ Cr topline in FY25
- Net profit of ₹408 Cr, up 17x from FY21
- Solar pump orders are flowing in from Maharashtra and beyond
- FIIs and DIIs are finally noticing — but so are 2 lakh+ shareholders 😮💨
The problem? Everyone wants in after the flood.
2. 🏭 WTF Do They Even Do?
Shakti Pumps manufactures motors, pumps, and advanced solar water pumping systems.
Core Segments:
- Pumps: Submersible, monoblock, vertical multistage, booster, open well, wastewater…basically, if it moves water, they make it.
- Motors: For submersible and surface use + even EV motors (hello, diversification).
- Controllers & Solar Tech: Universal solar pump controllers, soft starters, solar structures, PLC modules.
Bonus: They even sell “parameter setting manuals”. Because Indian jugaad deserves documentation.
3. 💰 Financials Overview – From Drip to Deluge
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | ROCE (%) | ROE (%) |
|---|---|---|---|---|---|
| FY20 | ₹383 | ₹-14 | 3% | -0% | – |
| FY22 | ₹1,179 | ₹65 | 9% | 21% | 27% |
| FY24 | ₹1,371 | ₹142 | 16% | 31% | 29% |
| FY25 | ₹2,516 | ₹408 | 24% | 55% | 43% |
📈 5-Year Revenue CAGR: 46%
📈 5-Year Profit CAGR: 99%
💸 TTM Profit Growth: 188%
🪙 Dividend Payout: 3% (they believe in reinvestment, not romance)
4. 📦 Valuation – Is This a Value Tank or a Pricey Geyser?
Multiples:
- P/E: 28x
- P/B: 9.8x
- EV/EBITDA (Est): ~20x
- Market Cap: ₹11,400 Cr
EduInvesting Fair Value Range:
| Basis | Assumptions | Range |
|---|---|---|
| P/E (18–22x on FY25 EPS ₹33.97) | Normal industrial growth | ₹610 – ₹750 |
| EV/EBITDA (15–18x on est. ₹700 Cr EBITDA) | Capital goods peers | ₹680 – ₹820 |
| DCF (20% growth, 12% discount rate) | Conservative | ₹700 – ₹850 |
🎯 EduFair™ Value Range: ₹650 – ₹820
At ₹949, it’s not nosebleed altitude, but the oxygen gets thin.
5. 🗞 What’s Cooking – Orders, Solar Buzz & Conferences
🆕 June 2025: ₹114.6 Cr solar pump order from Maharashtra’s Energy Dept (4,500 units)
🎤 May 2025: Presented at Axis Capital + B&K Securities investor conferences
🎧 May 2025 Earnings Call: Solar pump demand strong, export outlook upbeat
⚡ EV motor division under “R&D and pilot commercialization”
Basically, Shakti’s in every investor’s pitch deck with “sustainable rural irrigation” font in Comic Sans.
6. 🧾 Balance Sheet – Clean, Lean, But Debtors Mean
| Metric | FY25 |
|---|---|
| Total Assets | ₹1,974 Cr |
| Borrowings | ₹168 Cr |
| Reserves | ₹1,041 Cr |
| Fixed Assets | ₹227 Cr |
| CWIP | ₹33 Cr |
| Debt/Equity | ~0.16 |
So far, so solid. BUT…
- Debtor Days: 152 days 🤦 (up from 92 in FY23)
- That’s a lot of waiting to get paid after delivering your solar pumps.
7. 💵 Cash Flow – Steady, But Not Splashy
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹39 | ₹-12 | ₹-47 | ₹-20 |
| FY24 | ₹54 | ₹-67 | ₹192 | ₹180 |
| FY25 | ₹20 | ₹-198 | ₹44 | ₹-134 |
🧠 Capex-heavy year = negative net cash in FY25
Still, positive operating cash = the real 💪
8. 📊 Ratios – Sizzling or Slippery?
| Ratio | FY25 |
|---|---|
| ROCE | 55.3% |
| ROE | 42.6% |
| OPM | 24% |
| PAT Margin | ~16% |
| Inventory Days | 80 |
| CCC | 124 Days |
| Working Capital Days | 130 |
💥 Ultra-high returns, but cash conversion cycle longer than Indian weddings.
9. 📈 P&L Breakdown – Show Me the Margins
- Sales: ₹2,516 Cr
- EBITDA: ₹603 Cr
- Net Profit: ₹408 Cr
- EPS: ₹33.97
- OPM: 24%
- PAT Margin: 16%
In FY20, they were barely profitable. In FY25, they’re dripping ₹100 Cr+ profit per quarter. That’s what solar subsidies + operational leverage looks like.
10. 🔍 Misc – Shareholding & Retail Parade
| Category | Mar 2025 |
|---|---|
| Promoters | 51.61% (down from 56.22% in FY23) |
| FIIs | 5.16% (👀 sharp jump) |
| DIIs | 4.33% |
| Public | 38.91% |
| No. of Shareholders | 1.98 lakh (up from 41k in 2022) |
🔥 The crowd is here. Question is: who stays when the pump slows?
✅ EduInvesting Verdict™
Shakti Pumps is that rare smallcap that actually delivers:
✅ Orders are flowing
✅ Profits are growing
✅ ROCE is glowing
But…
🟠 Debtors are high
🟠 Promoters trimmed stake
🟠 Retail is… extremely excited
So no, we’re not saying it’s undervalued, overvalued, or a 10x. We’re just saying:
The pump is on. But don’t confuse pressure with precision.
As always, dig deeper, do the math, and pump responsibly.
✍️ Written by Prashant | 📅 28 June 2025
Tags: Shakti Pumps, Solar Pumps, Capex Stocks India, Capital Goods, EduInvesting, Rural Irrigation Stocks, High ROCE, Renewable Theme Stocks
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