NSEI:SHAKTIPUMP

Stock Analysis Report

Executive Summary

Shakti Pumps (India) Limited manufactures and sells submersible pumps and motors under the Shakti brand name in India.

Snowflake

Fundamentals

Proven track record with adequate balance sheet.

Risks

  • Shakti Pumps (India) has significant price volatility in the past 3 months.
  • Shakti Pumps (India) is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Shakti Pumps (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.8%

NSEI:SHAKTIPUMP

-0.2%

IN Machinery

0.4%

IN Market


1 Year Return

-36.1%

NSEI:SHAKTIPUMP

-27.8%

IN Machinery

-13.4%

IN Market

SHAKTIPUMP underperformed the Machinery industry which returned -26.6% over the past year.

SHAKTIPUMP underperformed the Market in India which returned -12.8% over the past year.


Share holder returns

SHAKTIPUMPIndustryMarket
7 Day6.8%-0.2%0.4%
30 Day-18.6%-10.3%-3.7%
90 Day-30.8%-15.8%-7.4%
1 Year-35.5%-36.1%-26.6%-27.8%-11.7%-13.4%
3 Year109.1%104.2%-3.9%-7.5%18.7%12.4%
5 Year16.3%11.8%37.1%29.4%37.5%24.5%

Price Volatility Vs. Market

How volatile is Shakti Pumps (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shakti Pumps (India) undervalued based on future cash flows and its price relative to the stock market?

12.74x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Shakti Pumps (India) is overvalued based on earnings compared to the IN Machinery industry average.

Shakti Pumps (India) is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Shakti Pumps (India), we can't assess if its growth is good value.


Price Based on Value of Assets

Shakti Pumps (India) is overvalued based on assets compared to the IN Machinery industry average.


Next Steps

Future Growth

How is Shakti Pumps (India) expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shakti Pumps (India)'s revenue is expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).

Shakti Pumps (India)'s earnings are expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Shakti Pumps (India)'s revenue growth is expected to exceed the India market average.

Shakti Pumps (India)'s earnings growth is positive but not above the India market average.

Shakti Pumps (India)'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 Shakti Pumps (India) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Shakti Pumps (India) performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shakti Pumps (India) has delivered over 20% year on year earnings growth in the past 5 years.

Shakti Pumps (India)'s 1-year earnings growth is less than its 5-year average (14.4% vs 24.8%)

Shakti Pumps (India)'s earnings growth has exceeded the IN Machinery industry average in the past year (14.4% vs 14.1%).


Return on Equity

Shakti Pumps (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Shakti Pumps (India) used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Shakti Pumps (India)'s financial position?


Financial Position Analysis

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

Shakti Pumps (India)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Shakti Pumps (India)'s level of debt (58.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (72.7% vs 58.5% today).

Debt is not well covered by operating cash flow (11.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.4x debt.


Next Steps

Dividend

What is Shakti Pumps (India)'s current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Shakti Pumps (India) before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Shakti Pumps (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Shakti Pumps (India)'s dividend is below the markets top 25% of dividend payers in India (2.51%).

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

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.5x 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 Shakti Pumps (India)'s salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

Dinesh Patidar (57yo)

12.8yrs

Tenure

₹16,800,000

Compensation

Mr. Dinesh Patidar has been the Managing Director of Shakti Pumps (India) Limited since November 2006. Mr. Patidar serves as the Chairman and Executive Director of Shakti Pumps (India) Limited. 


CEO Compensation Analysis

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

Dinesh's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.2yrs

Average Tenure

50yo

Average Age

The average tenure for the Shakti Pumps (India) management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.7yrs

Average Tenure

48yo

Average Age

The tenure for the Shakti Pumps (India) board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹6,405,11903 Oct 18
Vintex Tools Private Limited
EntityCompany
Shares20,000
Max Price₹320.26

Ownership Breakdown


Management Team

  • Dinesh Patidar (57yo)

    Chairman & MD

    • Tenure: 12.8yrs
    • Compensation: ₹16.80m
  • Ramesh Patidar (46yo)

    Whole Time Director

    • Tenure: 12.8yrs
    • Compensation: ₹3.10m
  • B. Patidar

    Finance Controller

    • Tenure: 0.0yrs
  • Sunil Patidar (50yo)

    Whole Time Director

    • Tenure: 24.3yrs
    • Compensation: ₹2.35m
  • Ankit Patidar

    Deputy General Manager of Marketing

    • Tenure: 9.6yrs
  • Ravi Patidar

    Company Secretary & Compliance Officer

    • Tenure: 2.8yrs
    • Compensation: ₹760.80k
  • Dinesh Patel

    Chief Financial Officer

    • Tenure: 0.4yrs

Board Members

  • Dinesh Patidar (57yo)

    Chairman & MD

    • Tenure: 12.8yrs
    • Compensation: ₹16.80m
  • Ramesh Patidar (46yo)

    Whole Time Director

    • Tenure: 12.8yrs
    • Compensation: ₹3.10m
  • Sunil Patidar (50yo)

    Whole Time Director

    • Tenure: 24.3yrs
    • Compensation: ₹2.35m
  • Navin Patwa (44yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: ₹80.00k
  • Sridhar Narayan (48yo)

    Nominee Director

    • Tenure: 4.7yrs
  • Nishtha Neema (39yo)

    Women Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹100.00k
  • Pramod Bhavsar (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹40.00k
  • Keyur Thaker

    Additional Independent Director

    • Tenure: 0.2yrs

Company Information

Shakti Pumps (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shakti Pumps (India) Limited
  • Ticker: SHAKTIPUMP
  • Exchange: NSEI
  • Founded: 1982
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹5.513b
  • Shares outstanding: 18.38m
  • Website: https://www.shaktipumps.com

Location

  • Shakti Pumps (India) Limited
  • Plot No. 401, 402, 413
  • Sector III
  • Pithampur
  • Madhya Pradesh
  • 454774
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531431BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002
SHAKTIPUMPNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2002

Biography

Shakti Pumps (India) Limited manufactures and sells submersible pumps and motors under the Shakti brand name in India. Its products include submersible, solar, vertical multistage centrifugal, single shaft ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 12:47
End of Day Share Price2019/08/20 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.