Hello Sir,

Hope you are doing well.

Shakti Pumps is one of the largest players supplying Solar Pumps under the KUSUM scheme and expects strong growth going ahead.

Like all the other stocks, this one too is going through a phase of correction and is down 50% from the peak. We decided to dig deeper into the company.

Below, we have shared notes from the Q3 FY 23 con-call transcript of the company:


Before that, some good news for medium-long term investors

Individual investor participation in shares dropped to 34 months low in Jan'23. Google trends - Multibagger chart also indicating low investor interest

To know why this is good news for investors with 3-4 years investment horizon Click HERE


Shakti Pumps - Notes from Q3 FY 23 con-call transcript

General Points

  • I am very happy with our performance in Quarter 3 and our team’s hard work despite these harsh conditions which has enabled us to post a revenue increase of 17% Y-o-Y with 29% YoY increase in the Solar EPC business
  • The business we did in KUSUM in this quarter is total of Rs 223 crores

Export business

  • Export revenue stood at Rs 166 crores in 9MFY23 up by 24.5% from Rs 133 crores the previous year
  • USA contribution is 33% of export revenue
  • In the US, we are also selling water pumps and in a few places we have started selling our solar pumps also, but our major sale is domestic water-supply pumps

KUSUM - Solar Pumps

  • Solar Energy Corporation of India (SECI) has issued new tenders for approximately 6.6 lakhs pumps in the month of December 2022. The tenders are expected to complete by March 2023 and we are expecting to receive some orders from Q1 FY 24
  • Government has also tightened up the rules and laws and improved the eligibility conditions of the tenders due to which large/organized players are in a better situation as against the earlier orders
  • This time its rate is also very good and competition is also less, so we are confident we will get good business
  • Our strong states like Madhya Pradesh, Rajasthan, Haryana and Punjab where we have already established ourselves has been coming up with strong demand
  • Out of this 666,000 pumps, requirement of approximately 500,000 pumps are from these states only
  • We feel that in the coming time, we will be able to take 30% to 35% market share

Understanding tender conditions

  • This is a market mode tender. In this farmers will be the decision maker, whichever company’s pumps he wants, he will purchase the pump of that company
  • In previous tenders MSMEs had the right to give their rate, but in this tender they do not have the right first of all. Further, along with their financial bid they have been asked 3% bank guarantee which they have to give on the spot and if they run away after giving tender then their 3% guarantee will be seized
  • Tender in different states will be different. If at one place, if anybody gives a wrong rate then at remaining states he will not be able to give the tender
  • We and Tata are the only players in India who can give tenders in all states as there's a experience requirement of selling at least 40,000 pumps

Old orders

  • The rate has already expired, so we requested to the ministry that at this rate we are not in a situation to supply pumps which the ministry accepted and new tender came and at the increased rate itself the orders worth of Rs 500 crores of Haryana which we have kept on hold, we hope that we will get it at the increased rate and we are working on that
  • We have few orders, in Maharashtra we are working in one different tender. We are working on one different tender in Chhattisgarh which does not come under KUSUM, in that we will continue our sale in that and we will execute that

Why low margins

  • Solar panel prices have increased


  • 10 crore term loan and 46 crore short term loan

Capacity utilization

  • Around 30%


If you are looking for wealth creation with growth stocks do check out our premium subscriptions. We have been helping our clients with our stock research for over a decade now.



Disclaimer: This is not a recommendation to buy/sell Shakti Pumps. These notes are as announced by the companies on exchanges and only for the purpose of information and education.


Best Regards,

Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.com/


SEBI Research Analyst Registration No. INH100001690
Research Analyst Details

Name: Ekansh Mittal     Email Id: [email protected]    Ph: +91 727 5050062

Details of Associate: Not Applicable

Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer: http://www.katalystwealth.com (here in referred to as Katalyst Wealth) is the domain owned by Ekansh Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research services to investors on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No. INH100001690

The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision

This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.

The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.

We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.

Disclaimer: You can access it here - LINK

Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – No

Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No

Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No

Whether it or its associates have received any compensation from the subject company in the past twelve months – No

Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No

Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No

Whether the research analyst has served as an officer, director or employee of the subject company – No

Whether the research analyst or research entity has been engaged in market making activity for the subject company – No