Solar Pump
I was not aware earlier that the solar pumps sector is booming so much. I don't think anyone fully grasps what is about to happen in this sector.
The govt has target to install 15 lakhs solar pumps under Kusum-B scheme and solarize 35 lacs grid connected pumps under Kusum scheme-C.
Now, if we look at last 2 investor presentations and the latest nos:
In Q3, the total no of solar pumps installed all india was 21,700. Out of this Shakti pumps executed 9164 or 42% market share.
Now in Q4, the total no of solar pumps installed is 30,068 which is more than Q3. If shakti pumps derives 67% of its revenues from this sector, then at same share its revenue in Q4 would be higher than Q3.
But this is not the best part yet. The total no of solar pumps executed till date is 3.14 lacs. The total target is 15 lacs so only 20% has been executed or 80% of the market is still to be tapped.
Now, the latest pace of installation is 30k pumps per quarter. But in next 6 years , to install 15 lac pumps we have to install 62k pumps per quarter. And Shakti pumps at same share, revenue can go up to 1000 cr per quarter also!!!!!
And Kusum C which means solarisation of 35 lacs is not even started yet. The capacity of shakti pumps is to manufacture 5 lac solar pumps and at 3 lac rs per pump revenue, total revenue can touch 15k cr also without expansion.
I am not even going into their EV mobility solutions co as that biz is yet to take off but even the existing biz can yield so much upside.
At 500 cr revenues per quarter min, the full year EPS will be 100 min, or at CMP its just a forward PE of 17.
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