Despite the bruising selloff, institutional money is betting big. In July, Shakti raised ₹292 crore through a QIP at ₹918 per share, backed by PineBridge, LIC MF, and Bank of India MF. The funds will help build a 2.2 GW solar DCR cell and PV module plant in Pithampur, Madhya Pradesh, signaling long-term expansion even as near-term stock momentum stalls.
“After delivering around 6x returns in 2025, Shakti has been in a consolidation phase recently. With over 25% market share in a burgeoning industry which presents a multi-year run, we believe there is a lot of steam left in this as yet,” Pawan Bharaddia, Co-founder and CIO at Equitree Capital, whose fund is an investor in Shakti, told ET Markets.
Bharaddia highlighted the company’s dominance in the PM Kusum Yojana, where Shakti commands an estimated 25% market share in major beneficiary states. “An engineering company which boasts of over 16 patents and business visibility to compound at 25-30% over the next few years, presents a compelling investment opportunity trading at its 10yr median PE ~ 23x FY26 estimated PAT,” he added.
The PM Kusum Yojana remains a pivotal growth driver, with only a fraction of the government’s multi-year target installed so far, signaling massive untapped potential.
However, cracks are showing in the near term. In the June quarter, revenue growth slowed to just 9.7% while PAT growth decelerated to 4.5% as EBITDA margins declined 87 basis points to 23.1%.”Given the substantial price correction, solid institutional support, robust order book, and the structural opportunities provided by the PM Kusum Yojana, Shakti Pumps could be an attractive bet for investors with a medium to long term horizon, while taking note of near term growth moderation and execution risks,” said Om Ghawalkar, Market Analyst at Share.Market.Also Read | 7 multibagger stocks that FIIs are hoarding in 2025. Are you missing out?
Technical Reality Check
Ghawalkar’s technical analysis reveals a mixed picture: “Shakti Pumps currently shows weak momentum, as the stock has underperformed relative to broader indices, signaling limited price strength in the near term. On the other hand, it earns a strong score on quality, underpinned by healthy financials, strong balance sheet management, and operational efficiency.”
The analyst noted the company demonstrates moderate volatility, reflecting exposure to cyclical demand from agriculture and renewable energy markets, while value and sentiment metrics remain challenging to gauge due to limited analyst coverage.
Shakti’s strategic pivot beyond its core pump business is gaining traction. “In addition to the Kusum scheme, diversification into EV motors and solar rooftop solutions reflect a well-defined strategy to capture emerging opportunities. These initiatives not only enhance long-term growth visibility but also de-risk the business model, positioning the company to unlock significant value over time,” Bharaddia explained.
The recent QIP participation by domestic mutual funds and increasing FII stake further endorse the industry leader’s potential, with smart money betting on a multi-year structural opportunity despite the current turbulence.
For investors brave enough to stomach the volatility, Shakti Pumps presents a classic contrarian play—a quality business trading at reasonable valuations after a sharp correction, backed by institutional confidence and positioned in a sunrise sector with government tailwinds.
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