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.


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

4.2%

SHAKTIPUMP

0.8%

IN Machinery

1.6%

IN Market


1 Year Return

-35.1%

SHAKTIPUMP

-14.3%

IN Machinery

0.8%

IN Market

Return vs Industry: SHAKTIPUMP underperformed the Indian Machinery industry which returned -14.3% over the past year.

Return vs Market: SHAKTIPUMP underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

SHAKTIPUMPIndustryMarket
7 Day4.2%0.8%1.6%
30 Day-12.7%2.5%1.5%
90 Day-23.4%-8.4%-3.3%
1 Year-34.0%-35.1%-12.9%-14.3%2.7%0.8%
3 Year122.3%115.9%-1.4%-5.1%22.0%16.0%
5 Year19.4%12.9%39.7%31.9%42.3%29.3%

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?

12.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SHAKTIPUMP (₹272.85) is trading above our estimate of fair value (₹43.02)

Significantly Undervalued: SHAKTIPUMP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHAKTIPUMP is good value based on its PE Ratio (12.3x) compared to the Machinery industry average (12.4x).

PE vs Market: SHAKTIPUMP is good value based on its PE Ratio (12.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low 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 1 analyst?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHAKTIPUMP's forecast earnings growth (3.8% per year) is below the savings rate (7.6%).

Earnings vs Market: SHAKTIPUMP's earnings (3.8% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: SHAKTIPUMP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SHAKTIPUMP's revenue (16.1% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: SHAKTIPUMP's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SHAKTIPUMP's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: SHAKTIPUMP's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: SHAKTIPUMP's earnings growth over the past year (14.4%) is below its 5-year average (24.8% per year).

Earnings vs Industry: SHAKTIPUMP earnings growth over the past year (14.4%) exceeded the Machinery industry 13.7%.


Return on Equity

High ROE: SHAKTIPUMP's Return on Equity (14.1%) is considered low.


Return on Assets

ROA vs Industry: SHAKTIPUMP has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: SHAKTIPUMP has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SHAKTIPUMP's short term assets (₹4.1B) exceeds its short term liabilities (₹2.6B)

Long Term Liabilities: SHAKTIPUMP's short term assets (4.1B) exceeds its long term liabilities (376.8M)


Debt to Equity History and Analysis

Debt Level: SHAKTIPUMP's debt to equity ratio (58.5%) is considered high

Reducing Debt: SHAKTIPUMP's debt to equity ratio has reduced from 72.7% to 58.5% 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 (3.7x 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 2.424000x debt).


Next Steps

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SHAKTIPUMP's dividend (1.83%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: SHAKTIPUMP's dividend (1.83%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

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 low payout ratio (22.4%), 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?

6.4yrs

Average management tenure


CEO

Dinesh Patidar (57yo)

12.9yrs

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: Insufficient data to establish whether Dinesh's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

6.4yrs

Average Tenure

50yo

Average Age

Experienced Management: SHAKTIPUMP's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

47yo

Average Age

Experienced Board: SHAKTIPUMP's board of directors are considered experienced (4.8 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₹2,858,98222 Aug 19
Dinesh Patidar
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares10,000
Max Price₹285.90

Ownership Breakdown


Management Team

  • Dinesh Patidar (57yo)

    Chairman & MD

    • Tenure: 12.9yrs
    • Compensation: ₹23.25m
  • Ramesh Patidar (46yo)

    Whole Time Director

    • Tenure: 13yrs
    • Compensation: ₹3.76m
  • B. Patidar

    Finance Controller

    • Tenure: 0yrs
  • Sunil Patidar (50yo)

    Whole Time Director

    • Tenure: 24.5yrs
    • Compensation: ₹2.37m
  • Ankit Patidar

    Deputy General Manager of Marketing

    • Tenure: 9.8yrs
  • Ravi Patidar

    Company Secretary & Compliance Officer

    • Tenure: 3yrs
    • Compensation: ₹880.80k
  • Dinesh Patel

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Dinesh Patidar (57yo)

    Chairman & MD

    • Tenure: 12.9yrs
    • Compensation: ₹23.25m
  • Ramesh Patidar (46yo)

    Whole Time Director

    • Tenure: 13yrs
    • Compensation: ₹3.76m
  • Sunil Patidar (50yo)

    Whole Time Director

    • Tenure: 24.5yrs
    • Compensation: ₹2.37m
  • Navin Patwa (44yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: ₹120.00k
  • Sridhar Narayan (48yo)

    Nominee Director

    • Tenure: 4.8yrs
  • Nishtha Neema (39yo)

    Women Independent Director

    • Tenure: 4.6yrs
    • Compensation: ₹120.00k
  • Pramod Bhavsar (66yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹120.00k
  • Keyur Thaker (44yo)

    Additional Independent Director

    • Tenure: 0.3yrs

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: ₹4.788b
  • 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 Analysis2019/10/15 12:54
End of Day Share Price2019/10/15 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.