Shakti Pumps (India) Ltd is primarily engaged in 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, commercial and industrial applications.
Its brand “Shakti” is well received in the domestic and international markets.

Two charts are shown, the first one shows the price action vis-à-vis the EPS growth over last several quarters. We can note that, clearly, earnings have been bounding higher while prices have chosen to stay dull. In the second chart we can see that the prices have been working out a corrective pattern of a long rise. The classic Evening Doji star at the top led to a multi week decline, bringing prices down from a high of 1387 to a low at 755 in Mar 25 and followed that up with some further corrective moves without breaking the low.

Now we find a strong candle up for this month on much better volumes, after completing an A-B-C structure that suggests a good rally, at the minimum to emerge in the counter. The results for Q4 were also quite satisfactory and the valuations have adjusted sharply. Now down to the median PE level near 26, the stock appears to be a value bet.

It seems that prices may attempt a pullback to around 1075 to meet a retracement target and that represents a potential 15% gain from current levels. If it continues beyond that level then even a retest of the highs would be possible (which would be 47% gain).