A strong fourth quarter in FY17 has placed Shakti Pumps in a position for growth. The company's sales grew by 124% in Q4, from Rs 164 crore in the same period last year; net profits jumped from Rs 0.22 crore to Rs 10.9 crore yoy. Promoters have increased their stake in the company in the most recent quarter. 

The firm delivered growth in FY17 in the face of multiple challenges: a weak monsoon, lower demand in the agri segment, and low Middle East demand due to weak oil prices.  Among these issues, a few are starting to resolve, pointing to stronger quarters in the coming months. Strong monsoon predictions have revived demand and credit growth, although challenges remain in rural spending due to indebtedness. Government moves towards more efficient pumps to replace older infrastructure, and solar-powered pumps are driving growth for the company.

Another big positive shift for Shakti is GST. GST is set to make unorganized pump makers and their prices less competitive, and also allow Shakti Pumps to target a broader domestic market. The firm is focusing on this through spends to expand its distribution network. This is happening as the pump market is expanding - estimates suggest that close to 2.6 crore pumps need to be replaced in India to conserve both electricity and diesel.

Shakti Pumps is present in the trendlyne screener for high YoY net profit growth.