Small cap stock jumps 4% after company received patent for grid connected motor

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Small cap stock jumps 4% after company received patent for grid connected motor
Credit: © Reuters.

Shares of this smallcap company jumped 4 percent in Friday’s trading session after securing a patent for new motor technology. The shares have delivered a whopping 413 percent returns to its shareholders in one year.

With a market capitalization of Rs. 5,570 crores, the shares of Shakti Pumps (India) started Friday’s trading session on a higher note at Rs. 2,740 compared to its previous close of Rs. 2,693.45. During the trading session, the shares hit a high of Rs. 2,828.10, gaining around 4 percent and are currently trading at Rs. 2,782 apiece.

Such a positive movement in the share price was observed after the company in an exchange filing announced that they had received a patent for inventing a Method and Apparatus for Soft Start, Soft Stop, Protection and Brown Out Operation of a Grid-Connected Motor.

The Patent Office, Government of India, has awarded Shakti Pumps this patent and is set to maintain its validity for a duration of 20 years, commencing from the date of filing. This is the 14th Patent that the company has secured.

Furthermore, the company mentioned that this patented technology offers several key benefits for both motor and grid electrical systems. By gradually ramping up the motor speed, the soft starter reduces mechanical stress on the motor and connected equipment, extending the motor’s lifespan and reducing maintenance costs.

Additionally, the company stated that the technology enhances the reliability of power electronic circuits by providing an input boost, thereby eliminating the risk of surges caused by voltage swells and in pump applications, preventing water hammer and mechanical shock in piping systems.

Coming onto the company’s financial statements, the revenue zoomed by 33 percent from Rs. 495.62 crores in the December quarter to Rs. 609.28 crores in the March quarter. In addition, the net profits magnified by 98 percent from Rs. 45.19 crores to Rs. 89.66 crores during the same timeframe.

Furthermore, the company incorporated a new subsidiary Shakti EV Mobility in December 2021. The subsidiary is engaged in the manufacturing and sale of EV motors, charging stations, battery management systems, electric control panels, smart electric control panels, VFDs and other items.

SPIL Board has approved investments of Rs. 114.3 crores in Shakti EV Mobility, in one or more tranches over 5 years.

As of 31st March 2024, Shakti Pumps has an order book totalling Rs. 2,400 crores, with an additional Rs. 250 crores in orders received during the recent quarter from the Haryana and Maharashtra governments.

Headquartered in Pithampur, Shakti Pumps was incorporated in 1995. The company is primarily engaged in the manufacturing of pumps and motors of various kinds. It also offers advanced water pumping solutions to a wide range of applications such as irrigation, horticulture, domestic water supply, and commercial and industrial applications.

Written By Vaibhav Patil


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The post Small cap stock jumps 4% after company received patent for grid connected motor appeared first on Trade Brains.

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