In simple terms, a solar-powered pump operates using energy from photovoltaic panels or collected sunlight, rather than relying on grid electricity or diesel. These pumps are more economical due to their lower operation and maintenance costs and have a smaller environmental footprint compared to diesel-powered pumps.
To encourage this technology, the Indian government has introduced the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) scheme through the Ministry of New and Renewable Energy (MNRE). This initiative aims to enhance energy security for farmers and promote the use of renewable energy in agriculture.
The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) scheme aims to install 30,800 MW of solar power capacity by 2026. This initiative supports the promotion of renewable energy and helps India achieve its goal of increasing the share of non-fossil fuel-based power capacity to 40% by 2030.
The scheme specifically targets the installation of 1.75 million standalone solar pumps, each with a capacity of up to 7.5 HP, in off-grid areas where electricity access is limited. Farmers benefit from a 60% subsidy provided by both state and central governments for installing these solar pumps.
The Government of Maharashtra has allocated ₹4,200 crore for implementing solar pumps under the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) scheme, aimed at improving energy security for farmers and encouraging the adoption of renewable energy in agriculture.
Additionally, the government has introduced a 95% subsidy on the installation costs of solar pumps, making solar irrigation more accessible, especially for small and marginal farmers.
Here are four stocks that have seen a surge in stock prices in 2024
Shakti Pumps (India) Ltd
Year-to-date, Shakti Pumps (India) Ltd shares have surged by 280%, with a nearly 30% increase in less than a month. On Friday, the company shares were trading at ₹3,890 per share.
The company’s yearly earnings have seen remarkable growth, with a 42% rise in revenue, climbing from ₹968 crore in FY22-23 to ₹1,371 crore in FY23-24.
Additionally, net profit soared by 491%, jumping from ₹24 crore to ₹142 crore over the same period.
Shakti Pumps India specializes in manufacturing submersible pumps for a range of applications including domestic, industrial, horticultural, and agricultural use.
The core operations of Shakti Pumps (India) Ltd. focus on producing various types of pumps and motors and offering advanced water pumping solutions for sectors such as irrigation, horticulture, domestic water supply, and commercial and industrial application
The company maintains a leading position in the domestic solar pump market with a 30% share under the PM KUSUM scheme.
Recently, Shakti Pumps was awarded a contract worth ₹33.47 crores by the Maharashtra Energy Development Agency (MEDA) for 1,200 off-grid solar photovoltaic water pumping systems.
Kirloskar Brothers Ltd
As of Friday, shares of Kirloskar Brothers Ltd were trading at ₹2,203, giving the company a market capitalization of ₹17,497 crores. Year-to-date, the shares have risen by 145%, and over the past 12 months, they have surged by 210%.
The company’s yearly earnings have seen remarkable growth, with a 7% rise in revenue, climbing from ₹3,730 crore in FY22-23 to ₹4,001 crore in FY23-24. Additionally, net profit soared by 48%, jumping from ₹236 crore to ₹350 crore over the same period.
KSB Ltd
As of Friday, KSB Ltd shares were trading at ₹4,745, with the company having a market capitalization of ₹16,497 crores. Year-to-date, Shakti Pumps (India) Ltd shares have increased by 37%, and over the past 12 months, the stock has risen by 120%.
KSB Ltd experienced a decline in yearly earnings, with revenue declined by 9.7%, from ₹603 crore in Q3FY24 to ₹544 crore in Q4FY24. Additionally, its net profit declined by 18%, from ₹55 crore to ₹45 crore during the same period.
Roto Pumps Ltd
On Friday, Roto Pumps Ltd shares were trading at ₹664, giving the company a market capitalization of ₹2,084 crores. Year-to-date, the shares have increased by 60%, and over the past 12 months, they have risen by 87%.
Roto Pumps experienced a notable increase in yearly earnings, with revenue increased by 21%, from ₹226 crore in FY22-23 to ₹274 crore in FY23-24. Additionally, its net profit increased by 18%, climbing from ₹33 crore to ₹39 crore during the same period.
