Markets India
Shakti Pumps shares surged 11%, hitting ₹359, as the Sensex and Nifty rallied on Wednesday. The stock's rise coincided with foreign inflows, improved earnings, and falling oil prices.
The sharp rally in Shakti Pumps' shares came amid a broader market upswing, with the BSE Sensex rising 1,097 points to 82,186.92 and Nifty 50 gaining 274 points to 25,317.55. The stock saw over 95 million shares traded intraday despite no fundamental catalyst cited for the surge.
While Shakti Pumps reported a 12% year-on-year revenue increase to ₹746 crore in Q2 FY27, its EBITDA dropped 53% to ₹64 crore and PAT fell 58% to ₹38.5 crore. These declines highlight persistent profitability challenges despite the market rally.
Brokerage Choice Broking assigned a target price of ₹410, implying a potential 12% upside from current levels. However, the stock's year-to-date decline of 46.97% underscores its underperformance relative to broader markets.
Choice Broking revised its target price to ₹410 using DCF analysis pending updates on the renewed KUSUM scheme announcement.
Market optimism drove Shakti Pumps' rally, but weak fundamentals and declining margins raise questions about sustainable growth amid policy uncertainty.
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Source: LiveMint
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