Shakti Pumps

The stock has been having a spectacular run on the bourses ever since it announced its numbers for Q4FY14 and FY14. For Q4FY14, the company’s net profit has doubled from Rs.5 crore to Rs.10 crore (YoY) on a 92% jump in total income at Rs.98 crore. And for FY14, the rise was comparatively more staid, with consolidated net profit increasing 47% on a 40% jump in total income. OPM jumped up from 17.19% to 20.09% though jump in NPM is more subdued – from 9.67% to 9.89%. The four times surge in tax, from Rs.1 crore to Rs.4 crore surely dented the NPM. Interest outgo remains pretty high at Rs.4 crore

The company is India’s largest stainless steel submersible pump maker, with plant at Madhya Pradesh. It has a very good export presence with major chunk of income coming from exports. A few months ago the company introduced solar power operated pumps and that, given the power deficit situation in rural India, is expected to do well. It now plans to look at new export markets in EU, Brazil and Russia and is also increasing its dealer network by three times over the next 2-3 years. But the only irking aspect in this stock is the fact that of the promoters holding of 44.95% stake, 60.33% stake in pledged. There is no FII holding and DIIs hold 7.44% stake.