NSEI:SHANTIGEAR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

SHANTIGEAR

-5.4%

IN Machinery

-2.9%

IN Market


1 Year Return

-49.1%

SHANTIGEAR

-39.6%

IN Machinery

-29.3%

IN Market

Return vs Industry: SHANTIGEAR underperformed the Indian Machinery industry which returned -39.6% over the past year.

Return vs Market: SHANTIGEAR underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

SHANTIGEARIndustryMarket
7 Day-1.0%-5.4%-2.9%
30 Day-29.1%-30.3%-26.5%
90 Day-35.0%-30.2%-28.5%
1 Year-47.4%-49.1%-38.5%-39.6%-27.9%-29.3%
3 Year-35.8%-40.9%-35.2%-37.9%-15.4%-20.0%
5 Year-39.8%-45.0%-22.3%-27.0%-3.3%-8.3%

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

Valuation

Is Shanthi Gears undervalued compared to its fair value and its price relative to the market?

17.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHANTIGEAR (₹65.7) is trading above our estimate of fair value (₹19.2)

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


Price To Earnings Ratio

PE vs Industry: SHANTIGEAR is poor value based on its PE Ratio (17.3x) compared to the Machinery industry average (10.1x).

PE vs Market: SHANTIGEAR is poor value based on its PE Ratio (17.3x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SHANTIGEAR is overvalued based on its PB Ratio (2.1x) compared to the IN Machinery industry average (0.8x).


Next Steps

Future Growth

How is Shanthi Gears forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.7%

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 Shanthi Gears 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 Shanthi Gears performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHANTIGEAR has high quality earnings.

Growing Profit Margin: SHANTIGEAR's current net profit margins (11.5%) are lower than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: SHANTIGEAR's earnings have grown significantly by 22.5% per year over the past 5 years.

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

Earnings vs Industry: SHANTIGEAR had negative earnings growth (-19.1%) over the past year, making it difficult to compare to the Machinery industry average (-6.2%).


Return on Equity

High ROE: SHANTIGEAR's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Shanthi Gears's financial position?


Financial Position Analysis

Short Term Liabilities: SHANTIGEAR's short term assets (₹2.0B) exceed its short term liabilities (₹440.7M).

Long Term Liabilities: SHANTIGEAR's short term assets (₹2.0B) exceed its long term liabilities (₹12.8M).


Debt to Equity History and Analysis

Debt Level: SHANTIGEAR is debt free.

Reducing Debt: SHANTIGEAR has not had any debt for past 5 years.

Debt Coverage: SHANTIGEAR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SHANTIGEAR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SHANTIGEAR's debt is covered by short term assets.


Next Steps

Dividend

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

3.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHANTIGEAR's dividend (3.02%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: SHANTIGEAR's dividend (3.02%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.4%), SHANTIGEAR's payments are 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

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average board tenure


CEO

M. Karunakaran

1.08s

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

Compensation vs Market: M.'s total compensation ($USD94.25K) is above average for companies of similar size in the Indian market ($USD48.50K).

Compensation vs Earnings: Insufficient data to compare M.'s compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Vellayan Subbiah
Additional Non-Executive Director1.08yrsno datano data
Sangampalyam Sundararaman
Independent Non-Executive Director2.08yrs₹635.00kno data
L. Ramkumar
Chairman2.08yrs₹391.67kno data
N. Samaraj
Additional Director1yrno datano data
J. Balamurugan
Independent Non-Executive Director7.5yrs₹710.00kno data
Soundara Kumar
Independent Non Executive Director5yrs₹620.00kno data

2.1yrs

Average Tenure

60.5yo

Average Age

Experienced Board: SHANTIGEAR's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Shanthi Gears Limited
  • Ticker: SHANTIGEAR
  • Exchange: NSEI
  • Founded: 1960
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹5.082b
  • 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, extruder, and cooling tower gear boxes, as well as geared motors. It also provides custom built loose gears that include gears and pinions, and special gearboxes; and iron, as well as phosphor bronze, aluminum bronze, leaded bronze, and copper alloy castings. In addition, the company offers installation support, refurbishment, and on site services. Its products are used in steel, cement, sugar, crane and material handling, paper, power, rubber and plastics, off-highway and mining, process, compressor, railway, textile, and aerospace applications. The company was founded in 1960 and is based in Coimbatore, India. Shanthi Gears Limited is a subsidiary of Tube Investments of India Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:05
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.