Shares of leading solar pump manufacturers, Oswal Pumps Ltd and Shakti Pumps (India) Ltd, experienced a significant rally of up to 8.28 percent in Monday's trading session. The surge came after both companies announced securing substantial new orders, enhancing their revenue visibility and market confidence.
Oswal Pumps Secures ₹235 Crore Repeat Order
Oswal Pumps Ltd received a repeat order valued at 235.92 crore rupees from the Maharashtra State Electricity Distribution Company (MSEDCL). This order is for an additional 10,000 off-grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) and is to be executed within 60 days under the central government's PM Kusum B Scheme.
Vivek Gupta, Chairman and Managing Director at Oswal Pumps, expressed his delight, stating, "We are delighted to receive this additional order for 10,000 solar pumps, which reflects the strong and enduring partnership we have built with MSEDCL driving Maharashtra's solar irrigation mission. This repeat order underscores the trust our customers place in Oswal Pumps and stands as a testament to our consistent execution, timely deliveries, and unwavering commitment to quality across every project we undertake."
This latest award further expands Oswal Pumps' cumulative order book under various solar pumping initiatives, solidifying its position as a key partner for large-scale solar water pumping solutions in India.
Shakti Pumps Wins ₹353 Crore MSEDCL Contract
Concurrently, Shakti Pumps (India) Ltd announced receiving a Letter of Empanelment from MSEDCL for 15,000 off-grid SPWPS. This order, valued at approximately 353.89 crore rupees (inclusive of GST), falls under the 'Magel Tyala Saur Krushi Pump Yojana' scheme.
Market Reaction and Analyst Outlook
Following these positive developments, Oswal Pumps' shares climbed 8.28 percent to reach a high of Rs 443.65 on the BSE. Similarly, Shakti Pumps India Ltd also advanced by 8.28 percent, hitting a high of Rs 622.
Despite the recent order wins, analyst firm Choice has revised its margin guidance downwards for both companies, citing higher material costs and lower realization for the current order book. For the June quarter, Choice anticipates a 25.4 percent drop in profit after tax for Oswal Pumps and a 74.5 percent year-on-year fall in profit for Shakti Pumps. However, Choice maintains an "ADD" rating for both stocks, with target prices of Rs 640 for Shakti Pumps and Rs 450 for Oswal Pumps, awaiting further policy catalysts.