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.

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹5B)



Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


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

Stable Share Price: SHAKTIPUMP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

SHAKTIPUMP

2.8%

IN Machinery

1.9%

IN Market


1 Year Return

-34.4%

SHAKTIPUMP

-8.3%

IN Machinery

8.1%

IN Market

Return vs Industry: SHAKTIPUMP underperformed the Indian Machinery industry which returned -11.1% over the past year.

Return vs Market: SHAKTIPUMP underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

SHAKTIPUMPIndustryMarket
7 Day-2.8%2.8%1.9%
30 Day29.2%6.8%3.1%
90 Day-3.6%5.9%6.5%
1 Year-33.3%-34.4%-6.9%-8.3%10.1%8.1%
3 Year88.5%83.1%8.8%4.7%35.1%28.0%
5 Year23.2%16.4%23.2%16.4%36.6%24.2%

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 compared to its fair value and its price relative to the market?

16.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHAKTIPUMP (₹264.55) is trading above our estimate of fair value (₹47.09)

Significantly Below Fair Value: SHAKTIPUMP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHAKTIPUMP is poor value based on its PE Ratio (16.2x) compared to the Machinery industry average (14.8x).

PE vs Market: SHAKTIPUMP is poor value based on its PE Ratio (16.2x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SHAKTIPUMP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SHAKTIPUMP is overvalued based on its PB Ratio (1.7x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Shakti Pumps (India) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Shakti Pumps (India) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHAKTIPUMP has high quality earnings.

Growing Profit Margin: SHAKTIPUMP's current net profit margins (5.8%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: SHAKTIPUMP's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: SHAKTIPUMP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SHAKTIPUMP had negative earnings growth (-29%) over the past year, making it difficult to compare to the Machinery industry average (2.3%).


Return on Equity

High ROE: SHAKTIPUMP's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SHAKTIPUMP's short term assets (₹3.8B) exceed its short term liabilities (₹2.2B).

Long Term Liabilities: SHAKTIPUMP's short term assets (₹3.8B) exceed its long term liabilities (₹404.1M).


Debt to Equity History and Analysis

Debt Level: SHAKTIPUMP's debt to equity ratio (61.4%) is considered high.

Reducing Debt: SHAKTIPUMP's debt to equity ratio has reduced from 63.1% to 61.4% over the past 5 years.

Debt Coverage: SHAKTIPUMP's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SHAKTIPUMP's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: SHAKTIPUMP has a high level of physical assets or inventory.

Debt Coverage by Assets: SHAKTIPUMP's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

1.88%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.2%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SHAKTIPUMP's dividend (1.89%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: SHAKTIPUMP's dividend (1.89%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: SHAKTIPUMP's dividend payments have been volatile in the past 10 years.

Growing Dividend: SHAKTIPUMP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.6%), SHAKTIPUMP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


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?

6.6yrs

Average management tenure


CEO

Dinesh Patidar (57yo)

13.2yrs

Tenure

₹23,250,000

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 since April  ...


CEO Compensation Analysis

Compensation vs Market: Dinesh's total compensation ($USD328.09K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Dinesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.6yrs

Average Tenure

50yo

Average Age

Experienced Management: SHAKTIPUMP's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

47yo

Average Age

Experienced Board: SHAKTIPUMP's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: SHAKTIPUMP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹2,230,65721 Nov 19
Dinesh Patidar
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares10,000
Max Price₹223.07
Buy₹2,858,98222 Aug 19
Dinesh Patidar
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares10,000
Max Price₹285.90

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dinesh Patidar (57yo)

    Chairman & MD

    • Tenure: 13.2yrs
    • Compensation: ₹23.25m
  • Ramesh Patidar (46yo)

    Whole Time Director

    • Tenure: 13.3yrs
    • Compensation: ₹3.76m
  • B. Patidar

    Finance Controller

    • Sunil Patidar (50yo)

      Whole Time Director

      • Tenure: 24.8yrs
      • Compensation: ₹2.37m
    • Ankit Patidar

      Deputy General Manager of Marketing

      • Tenure: 10yrs
    • Ravi Patidar

      Company Secretary & Compliance Officer

      • Tenure: 3.3yrs
      • Compensation: ₹880.80k
    • Dinesh Patel

      Chief Financial Officer

      • Tenure: 0.8yrs

    Board Members

    • Dinesh Patidar (57yo)

      Chairman & MD

      • Tenure: 13.2yrs
      • Compensation: ₹23.25m
    • Ramesh Patidar (46yo)

      Whole Time Director

      • Tenure: 13.3yrs
      • Compensation: ₹3.76m
    • Sunil Patidar (50yo)

      Whole Time Director

      • Tenure: 24.8yrs
      • Compensation: ₹2.37m
    • Navin Patwa (44yo)

      Independent Director

      • Tenure: 8yrs
      • Compensation: ₹120.00k
    • Sridhar Narayan (48yo)

      Nominee Director

      • Tenure: 5.1yrs
    • Nishtha Neema (39yo)

      Women Independent Director

      • Tenure: 4.8yrs
      • Compensation: ₹120.00k
    • Pramod Bhavsar (66yo)

      Independent Director

      • Tenure: 2.7yrs
      • Compensation: ₹120.00k
    • Keyur Thaker (44yo)

      Additional Independent Director

      • Tenure: 0.6yrs

    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: ₹4.896b
    • Shares outstanding: 18.38m
    • Website: https://www.shaktipumps.com

    Location

    • Shakti Pumps (India) Limited
    • Plot No. 401, 402, 413
    • Sector 3
    • 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 vertical multistage, pressure booster, end suction, waste water, immersible, open well, self-priming, and slow speed pumps, as well as submersible motors, hydro-pneumatic booster systems, starters, valves, and drips. The company also provides support services. Its pumps are used for agricultural, industrial, horticultural, and domestic applications. The company also exports its products to approximately 100 countries. Shakti Pumps (India) Limited was founded in 1982 and is headquartered in Pithampur, India. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 12:52
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    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.