BSE:522034

Stock Analysis Report

Executive Summary

Shanthi Gears Limited designs, manufactures, supplies, and services gears and gear boxes in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

Risks

  • Shanthi Gears is covered by less than 3 analysts.

Share Price & News

How has Shanthi Gears's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.7%

522034

3.8%

IN Machinery

2.0%

IN Market


1 Year Return

-23.1%

522034

-18.6%

IN Machinery

-6.2%

IN Market

522034 underperformed the Machinery industry which returned -18.6% over the past year.

522034 underperformed the Market in India which returned -6.2% over the past year.


Share holder returns

522034IndustryMarket
7 Day5.7%3.8%2.0%
30 Day15.2%8.8%5.2%
90 Day-14.2%-9.5%-3.7%
1 Year-19.4%-23.1%-17.2%-18.6%-4.3%-6.2%
3 Year-18.3%-22.9%0.6%-3.2%20.7%14.6%
5 Year-5.8%-11.9%42.1%34.2%41.3%28.0%

Price Volatility Vs. Market

How volatile is Shanthi Gears's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shanthi Gears undervalued based on future cash flows and its price relative to the stock market?

22.96x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Shanthi Gears's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Shanthi Gears's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Shanthi Gears is overvalued based on earnings compared to the IN Machinery industry average.

Shanthi Gears is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Shanthi Gears, we can't assess if its growth is good value.


Price Based on Value of Assets

Shanthi Gears is overvalued based on assets compared to the IN Machinery industry average.


Next Steps

Future Growth

How is Shanthi Gears expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shanthi Gears's revenue is expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Shanthi Gears's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

Shanthi Gears's revenue growth is expected to exceed the India market average.

Shanthi Gears's earnings growth is positive but not above the India market average.

Shanthi Gears's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Shanthi Gears will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Shanthi Gears performed over the past 5 years?

23.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shanthi Gears has delivered over 20% year on year earnings growth in the past 5 years.

Shanthi Gears's 1-year earnings growth is less than its 5-year average (7.1% vs 23.8%)

Shanthi Gears's earnings growth has not exceeded the IN Machinery industry average in the past year (7.1% vs 13.6%).


Return on Equity

Shanthi Gears has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Shanthi Gears used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Shanthi Gears has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Shanthi Gears's financial position?


Financial Position Analysis

Shanthi Gears is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Shanthi Gears's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Shanthi Gears has no debt.

Shanthi Gears has not taken on any debt in the past 5 years.

Shanthi Gears has no debt, it does not need to be covered by operating cash flow.

Shanthi Gears has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Shanthi Gears has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Shanthi Gears's current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Dividend Yield and Payments Analysis

Shanthi Gears's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

Shanthi Gears's dividend is below the markets top 25% of dividend payers in India (2.33%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Shanthi Gears's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average board tenure


CEO

M. Karunakaran 0

0.6yrs

Tenure

₹7,104,000

Compensation

Mr. M. Karunakaran serves as a Chief Executive Officer at Shanthi Gears Limited since February 1, 2019 and serves as a Head of Operations & Technical since 2014. He has also completed Advanced Manufacturin ...


CEO Compensation Analysis

M.'s remuneration is higher than average for companies of similar size in India.

Insufficient data for M. to compare compensation growth.


Board Age and Tenure

1.6yrs

Average Tenure

60.5yo

Average Age

The average tenure for the Shanthi Gears board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • C. Subramaniam

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹1.68m
  • Debashis Chattopadhyay

    Head of Marketing

    • Tenure: 0yrs
  • M. Karunakaran

    CEO and Head of Operations & Technical Function

    • Tenure: 0.6yrs
    • Compensation: ₹7.10m
  • M. Mahendran

    Head of Engineering

    • Tenure: 0yrs
  • P. Satishkumar

    Head of Costing

    • Tenure: 0yrs
  • R. Hariprakash

    Head of Research & Development

    • Tenure: 0yrs
  • B. Balamurugan

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: ₹3.31m

Board Members

  • Vellayan Subbiah (50yo)

    Additional Non-Executive Director

    • Tenure: 0.6yrs
  • Sangampalyam Sundararaman (45yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: ₹635.00k
  • L. Ramkumar (63yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: ₹391.67k
  • N. Samaraj (64yo)

    Additional Director

    • Tenure: 0.5yrs
  • J. Balamurugan (58yo)

    Independent Non-Executive Director

    • Tenure: 7yrs
    • Compensation: ₹710.00k
  • Soundara Kumar (65yo)

    Independent Non Executive Director

    • Tenure: 4.5yrs
    • Compensation: ₹620.00k

Company Information

Shanthi Gears Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shanthi Gears Limited
  • Ticker: 522034
  • Exchange: BSE
  • Founded: 1960
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹6.939b
  • Shares outstanding: 76.72m
  • Website: https://www.shanthigears.com

Number of Employees


Location

  • Shanthi Gears Limited
  • 304-A, Trichy Road
  • Singanallur
  • Coimbatore
  • Tamil Nadu
  • 641005
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
522034BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1996
SHANTIGEARNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1996

Biography

Shanthi Gears Limited designs, manufactures, supplies, and services gears and gear boxes in India and internationally. The company offers standard products, such as helical and bevel helical, worm, extrude ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 12:31
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.