As per my knowledge, component c of KUSUM has two sub types. 1st is kusum C Individual pump solarization (ips) and 2nd feeder level solarization (fls).
I think Installation of new solar water pump is not mandatory.
Scope of work for shakti pump under component c need to be identified as solar pump is not mandatory.
Management is very positive for upcoming tender of component c.
Some links are attached.
FinalFAQsKUSUMC2.pdf (575.1 KB)
KUSUM C scheme is mainly solar project of small sizes normally in the range of 1 - 10 MW where the power output will be directly feeded at different sub stations. Solar Pump replacement is not part of this project.
Can any one advise the status of Maharashtra project progress as Company was having large tender order for execution.
In KUSUM C , if replacement of pumps is not mandatory, then many EPC players will arise and fill the gap of setting up Solar PV module to connect the feeder station and pumps in farm. This will Indirectly become IPP( Independent Power Producer) model,
Eventually Shakthi Pumps will loose moat and end up being sole supplier of electric pumps and less action in KUSUM C.( where they boast its big driver in future)
I’m just randomly connecting dots, it would be great if someone comment on it!
As per my understanding there is no role of Shakti Pump under KUSUM scheme C.
Small size solar plant (1-10MW ) will directly feed power to Substation as against present arrangement of drawing power from Grid.
Connection from Sub Station to Pump is already there.
What is the role of Shakti as a solar Pump supplier under this scheme???
Commentary in concall on this. Search for Ajmer keyword
Shakti Pumps (India) Limited has received a Letter of Empanelment from
Maharashtra State Electricity Distribution Company Limited for 25000 Stand-alone Off-Grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) pumps for
the entire state of Maharashtra under Magel Tyala Saur Krushi Pump Scheme. The
total value of the 25000 pumps is around Rs. 754.30 Crores (inclusive of GST) which is
to be executed within 60 days from the issuance of NTP/work order.
check last 2 concalls, u will understand wat was dinesh ji saying !
For a 5 hp pump, a farmer only has to pay 32 thousand (3/5/7 hp options are available as per land). This is a speedy process; after applying for the solar pump scheme, farmers get the notification for payment within a month, and after that, they have to choose a pump. There are different companies available to choose from in my area(MH). Most of the farmers are going toward solar because of lots of new well schemes and connections of pumps transformers not handling a load and pumps getting frequent problems.
PM on Kusum C yojna and the farmer being Urjadata which Shakti pump promoters emphasize in the concalls.
https://x.com/narendramodi/status/1868993579269734440/mediaViewer
The Company is at peak margin of 23% and in all probability it will revert to mean to around 15%. Government will not allow any entity to have such high margins in any project which is being funded by way of subsidy. The abnormal margins are because pricing under KUSUM has not been revised for last around 2 years and there has substantial reduction in panel prices. Any investor should be wary of all such factors.
Kusum scheme is on track only in Haryana and Maharashtra state and as per ground report budgetary allotment of subsidy is a main challenge.
In my opinion KUSUM alone cannot lead to such kind of appreciation and valuation of the stock on permanent basis. May be there are other triggers apart from KUSUM which I may not be aware of. would love to hear counter views.
Pump and dump is very very much prevalent in the current market and investors should be vary of their investments.
Would certainly like to review the stock and my opinion after 1 year.
Disclosure: Exited long time back and it has run beyond my expectation and comfort level. I am more than happy to leave profit above my comfort level.
good luck to you, @VALUE2017
According to my estimate, still there is trigger left
If by “worth buying” based on PE, you mean will it go up in the short, medium or long term, the correct answer is absolutely no one knows. Promoters announced fund raising mostly through a QIP. You shall have to do your own due diligence based on what parameters you like buying stocks by.
Promoters have been guiding only for the next quarter revenue so far. The order book remains short so it will be hard to get some long term visibility here. Key trigger remains Kusum C which may or maynot pan out. So one can track that along with the EV vertical ramp up. Margins to me look peaked out.
It would be interesting to see what kind of money they will try to raise and who all participate in the plan for QIP announced today.
Not only KUSUM,But yes kusum play a very imp role for future growth
Also, Shakti Pump is enrolled as vendor in Maharashtra as per following link:
Another round of fund raising. Previous fund raising is yet to be utilised. Capacity utilisation is less then 70%. Why the management needs more fund raising.
Raising of funds through issuance of eligible securities of the Company by way of, inter alia, a preferential allotment or a private placement (including one or more Qualified Institutions Placements (“QIP”) or further public issue of equity shares or through any other permissible mode or any combination thereof, in accordance with the applicable provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (each as amended), in such manner, and on
such terms and conditions as may be deemed appropriate by the Board of the Company in its absolute discretion, subject to the subsequent approval of the shareholders of the Company through postal ballot;
