Shares of Shakti Pumps (India) Ltd were locked among the top gainers on the BSE SmallCap on Monday, with the stock trading around Rs 725, up roughly 11% from the previous close of Rs 649.70 and well above its intraday low of about Rs 633. Volumes have swelled to nearly three times the recent two-week average, signalling fresh institutional and high-beta interest after the company disclosed three large government orders for solar water pumping systems aggregating to a little over Rs 500 crore (about Rs 539 crore including GST).

The latest contracts, Rs 407.5 crore (Rs 443.8 crore with GST) from Maharashtra State Electricity Distribution Company (MSEDCL), Rs 71.25 crore from Madhya Pradesh Urja Vikas Nigam and Rs 23.98 crore from Jharkhand Renewable Energy Development Agency, are all for design, supply, installation and commissioning of off-grid DC solar photovoltaic water pumping systems, with execution windows of just 60–120 days.

Against FY25 revenue of about Rs 2,516 crore and PAT of roughly Rs 408 crore, these orders add visibility equivalent to a little over 20% of last year’s sales and meaningfully thicken an already strong solar-pump order book that was estimated around Rs 1,300–1,650 crore earlier this year. Because the work is largely EPC-style and within Shakti’s core product set, the street is reading this as near-term revenue and cash-flow accretion rather than a distant pipeline.

At a trailing P/E of roughly 22–23x and with the stock still trading well below its 52-week high near Rs 1,400 after a sharp drawdown in 2025, the fresh rally looks more like a repair of sentiment than pure froth.

The company has delivered explosive growth over the last two years on the back of PM-KUSUM and state solar-pump schemes, FY25 revenue grew more than 80% and PAT almost trebled but this has come with stretched working-capital cycles and high receivables from state agencies, which remain key execution and governance risks even as order momentum stays strong.