Karvy initiates coverage on Shakti Pumps (India) Ltd with a Buy rating. Shakti's revenue are expected to grow at a CAGR of 11.3% during FY15-17E driven by volume growth of 7.0% and realization growth of 4.3% during FY15- 7E. Change in product mix specifically higher volumes from industrial boosters, solar pumps etc. and increased share of exports to LATAM and South East Asian markets are key drivers of growth. EBITDA and PAT margins are expected to improve to 17.7% and 9.6% by FY17E respectively and return ratios, RoE and RoCE, to reach to 15.4% and 10.9% by FY17E respectively. We value Shakti on 1yr forward mean P/E (during FY05-15) of 8.2x FY17E EPS of Rs.21.2 for a target of Rs.174 with an upside potential of 16%.