Why Shakti Pumps shares are rising 11% today amid Sensex, Nifty rally? Buy for more returns? Target, upside, rationale
Shakti Pumps shares surged as much as 11% in Wednesday's trading session amid positive sentiments on Dalal Street. The stock opened at ₹359 per share today, as compared to previous close of ₹355.80 on Monday.
It is to be noted that there is no fundamental trigger behind the significant rally in Shakti Pumps shares. The stock witnessed a spurt in its trading volume as around 95.32 lakh shares changed hands on NSE during the intraday session on Wednesday.
Meanwhile, Indian equity benchmarks, the Sensex and Nifty, opened Wednesday's session on a strong note, supported by foreign institutional inflows, better-than-expected September-quarter earnings and a continued decline in crude oil prices. The BSE Sensex surged 1,097.33 points to 82,186.92 in early trade, while the NSE Nifty 50 advanced 274.30 points to 25,317.55.
Shakti Pumps (India) reported a 12% year-on-year increase in consolidated revenue from operations to ₹746 crore in Q2 FY27, compared with ₹666.4 crore in the corresponding quarter last year. However, the company's profitability came under significant pressure during the quarter, with EBITDA declining 52.9% to ₹64 crore from ₹136 crore in Q2 FY26.
The company's EBITDA margin contracted sharply to 8.6% in the September quarter, compared with 20.4% in the year-ago period, reflecting pressure on operating profitability. Profit before tax (PBT) declined 59.3% year-on-year to ₹49.5 crore from ₹121.5 crore in Q2 FY26.
Shakti Pumps' consolidated profit after tax (PAT) fell 57.6% year-on-year to ₹38.5 crore in Q2 FY27, against ₹90.7 crore in the corresponding quarter of the previous financial year. Its PAT margin also declined to 5.2% from 13.6% a year ago.
Shakti Pumps (India) shares have witnessed a sharp recovery in the near term, gaining 10.04% over the past week. However, the stock has remained under pressure over the past month, declining 5.60%.
The solar pump manufacturer's shares have plunged 46.50% on a year-to-date basis and 46.97% over the last one year, reflecting significant weakness despite the recent rebound.
On a longer-term basis, Shakti Pumps shares have delivered strong returns, rising 124.13% over the past three years and 254.02% over five years.
Brokerage firm Choice Broking has assigned ‘add’ rating to the Shakti Pumps stock with a target price of ₹410, with an upside potential up to 12%.
“We now estimate EBITDA margin of 15% in FY29E as captive module supply scales up and KUSUM 2.0 restores order inflow. Our forecast builds Revenue / EBITDA / PAT CAGR of 14.6% / 13.0% / 13.3% over FY26–FY29E, respectively. We remain cautious on the stock, pending announcement of a renewed KUSUM scheme and revise our TP to INR 410/share using the DCF approach (vs. INR 640), assigning an ‘ADD’ rating,” the firm said.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsWhy Shakti Pumps shares are rising 11% today amid Sensex, Nifty rally? Buy for more returns? Target, upside, rationale
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