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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Shakti Pumps (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 1:54 am

Market Cap 8,950 Cr.
Current Price 4,467
High / Low5,151/929
Stock P/E27.2
Book Value 470
Dividend Yield0.01 %
ROCE31.4 %
ROE24.2 %
Face Value 10.0
PEG Ratio1.15

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Shakti Pumps (India) Ltd

Competitors of Shakti Pumps (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hawa Engineers Ltd 87.1 Cr. 247338/99.931.0 55.90.00 %14.7 %10.4 % 10.0
Shakti Pumps (India) Ltd 8,950 Cr. 4,4675,151/92927.2 4700.01 %31.4 %24.2 % 10.0
Latteys Industries Ltd 228 Cr. 39.648.6/13.0207 3.210.00 %11.8 %9.00 % 2.00
Bright Solar Ltd 12.2 Cr. 4.9012.5/4.90 11.80.00 %10.9 %11.5 % 10.0
Kirloskar Brothers Ltd 16,290 Cr. 2,0512,685/83741.4 2330.29 %27.3 %21.7 % 2.00
Industry Average9,963.00 Cr1,272.5874.54141.920.12%19.90%15.65%6.00

All Competitor Stocks of Shakti Pumps (India) Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales320156369269385254216314183113153496609
Expenses270144335241348233204292172105138425479
Operating Profit50133427362112221181571131
OPM %16%8%9%10%9%8%6%7%6%7%10%14%21%
Other Income1112211111111
Interest3335566343458
Depreciation5555555545555
Profit before tax4462720291231531763119
Tax %30%-12%23%27%23%26%30%24%24%-37%20%28%25%
Net Profit30721152292112164590
EPS in Rs16.593.9711.318.0511.954.761.036.121.220.543.1924.5944.75

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2092922972644284355443839301,1799681,3711,825
Expenses1792492492443683564543717881,0689011,1461,472
Operating Profit304347206078891214211067225353
OPM %14%15%16%8%14%18%16%3%15%9%7%16%19%
Other Income710119234446346
Interest12131314171418211616191925
Depreciation571012131415171819181919
Profit before tax2034363335460-221118232190315
Tax %14%27%26%58%35%35%25%-35%32%21%25%25%
Net Profit1725261223545-14766524142233
EPS in Rs11.0316.3915.700.6411.7818.9624.53-7.6641.1335.2713.1370.73118.77
Dividend Payout %9%12%13%0%0%20%20%0%19%6%15%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)47.06%4.00%-96.15%2100.00%59.09%28.57%-131.11%642.86%-14.47%-63.08%491.67%
Change in YoY Net Profit Growth (%)0.00%-43.06%-100.15%2196.15%-2040.91%-30.52%-159.68%773.97%-657.33%-48.60%554.74%

Shakti Pumps (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:20%
3 Years:14%
TTM:202%
Compounded Profit Growth
10 Years:19%
5 Years:26%
3 Years:23%
TTM:1517%
Stock Price CAGR
10 Years:37%
5 Years:84%
3 Years:90%
1 Year:327%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:17%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital15151717181818181818182020
Reserves94115175170205235272247322375400736922
Borrowings9211311711989110178193791067585162
Other Liabilities446562601069411583251364232610746
Total Liabilities2453083713664194575835416718647251,4501,850
Fixed Assets8090106110121121140153147146147149152
CWIP0258001211123950
Investments0000000000000
Other Assets1652172612482983364313875227175771,2631,648
Total Assets2453083713664194575835416718647251,4501,850

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2918-4335320-250141173954
Cash from Investing Activity +-29-29-25-18-17-19-44-350-8-12-67
Cash from Financing Activity +-21228-14-33642-14-1260-47192
Net Cash Flow-21-1126-511510-20180

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-62.00-70.00-70.00-99.00-29.00-32.00-89.00-181.0063.004.00-8.00140.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1051051249611812012111910411992178
Inventory Days2552072733021611781512127487102118
Days Payable757975699176807510211562172
Cash Conversion Cycle2842333233301892221922567691131123
Working Capital Days1641261881871381811922368998123118
ROCE %17%21%18%5%16%20%19%-0%29%21%10%31%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters54.66%54.82%54.82%54.82%55.95%56.14%56.22%56.22%56.22%51.57%51.57%51.57%
FIIs1.47%0.44%0.27%0.34%0.36%0.35%0.39%0.64%0.49%0.77%2.32%3.36%
DIIs0.07%0.08%0.06%0.00%0.00%0.00%0.15%0.22%0.31%8.68%6.85%6.79%
Public43.79%44.66%44.85%44.83%43.68%43.53%43.23%42.93%43.00%38.96%39.25%38.27%
No. of Shareholders39,83942,01841,65942,78444,27342,63645,54145,27947,50252,94370,19096,955

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)76.9113.1335.2641.12-7.66
Diluted EPS (Rs.)76.9113.1335.2641.12-7.66
Cash EPS (Rs.)80.2323.1445.3751.121.70
Book Value[Excl.RevalReserv]/Share (Rs.)377.19227.45213.91185.31144.26
Book Value[Incl.RevalReserv]/Share (Rs.)377.19227.45213.91185.31144.26
Revenue From Operations / Share (Rs.)684.17526.48641.20505.80208.28
PBDIT / Share (Rs.)114.0037.9863.4379.348.89
PBIT / Share (Rs.)104.5027.9753.3369.34-0.46
PBT / Share (Rs.)94.7817.5444.8060.52-11.78
Net Profit / Share (Rs.)70.7313.1335.2641.12-7.66
NP After MI And SOA / Share (Rs.)70.7313.1335.2641.12-7.66
PBDIT Margin (%)16.667.219.8915.684.26
PBIT Margin (%)15.275.318.3113.71-0.22
PBT Margin (%)13.853.336.9811.96-5.65
Net Profit Margin (%)10.332.495.498.13-3.67
NP After MI And SOA Margin (%)10.332.495.498.13-3.67
Return on Networth / Equity (%)18.755.7716.4822.19-5.30
Return on Capital Employeed (%)27.3511.8123.5433.70-0.28
Return On Assets (%)9.773.327.5011.27-2.60
Long Term Debt / Equity (X)0.000.010.020.050.09
Total Debt / Equity (X)0.100.170.260.260.69
Asset Turnover Ratio (%)1.261.221.541.520.65
Current Ratio (X)1.821.941.591.711.53
Quick Ratio (X)1.381.221.111.260.92
Inventory Turnover Ratio (X)3.903.525.474.792.02
Dividend Payout Ratio (NP) (%)0.0015.2322.680.00-78.70
Dividend Payout Ratio (CP) (%)0.008.6417.630.00355.04
Earning Retention Ratio (%)0.0084.7777.320.00178.70
Cash Earning Retention Ratio (%)0.0091.3682.370.00-255.04
Interest Coverage Ratio (X)11.733.647.448.990.78
Interest Coverage Ratio (Post Tax) (X)8.282.265.135.660.32
Enterprise Value (Cr.)2555.39799.01903.14996.11363.06
EV / Net Operating Revenue (X)1.860.820.761.070.94
EV / EBITDA (X)11.1911.447.756.8322.22
MarketCap / Net Operating Revenue (X)1.950.760.711.020.56
Retention Ratios (%)0.0084.7677.310.00178.70
Price / BV (X)3.541.782.142.780.81
Price / Net Operating Revenue (X)1.950.760.711.020.56
EarningsYield0.050.030.070.07-0.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Shakti Pumps (India) Ltd as of November 14, 2024 is: 3,094.04

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Shakti Pumps (India) Ltd is Overvalued by 30.74% compared to the current share price 4,467.00

Intrinsic Value of Shakti Pumps (India) Ltd as of November 14, 2024 is: 3,825.04

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Shakti Pumps (India) Ltd is Overvalued by 14.37% compared to the current share price 4,467.00

Last 5 Year EPS CAGR: 23.63%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.25%, which is a positive sign.
  2. The company has higher reserves (328.31 cr) compared to borrowings (116.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (365.62 cr) and profit (72.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 153.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 204.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Shakti Pumps (India) Ltd:
    1. Net Profit Margin: 10.33%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.35% (Industry Average ROCE: 19.9%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 18.75% (Industry Average ROE: 15.65%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 8.28
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.38
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 27.2 (Industry average Stock P/E: 62.12)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.1
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Shakti Pumps (India) Ltd. is a Public Limited Listed company incorporated on 21/04/1995 and has its registered office in the State of Madhya Pradesh, India. Company’s Corporate Identification Number(CIN) is L29120MP1995PLC009327 and registration number is 009327. Currently Company is involved in the business activities of Manufacture of other pumps, compressors, taps and valves etc.. Company’s Total Operating Revenue is Rs. 1124.06 Cr. and Equity Capital is Rs. 18.38 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PumpsPlot No. 401, 402 and 413, Sector III, Dhar District Madhya Pradesh 454774cs@shaktipumpsindia.com
http://www.shaktipumps.com
Management
NamePosition Held
Mr. Dinesh PatidarChairman & Wholetime Director
Mr. Ramesh PatidarManaging Director
Mr. Sunil PatidarWhole Time Director
Mr. Ashwin BhootdaWhole Time Director
Mr. Keyur Bipinchandra ThakerIndependent Director
Mr. Hirabhai Somabhai PatelIndependent Director
Mr. Bhim SinghIndependent Director
Mr. Venkata Samrajya Sri Pavan Kumar HariIndependent Director
Mrs. Nishtha NeemaIndependent Woman Director

FAQ

What is the latest intrinsic value of Shakti Pumps (India) Ltd?

The latest intrinsic value of Shakti Pumps (India) Ltd as on 14 November 2024 is ₹3094.04, which is 30.74% lower than the current market price of ₹4,467.00.

What is the Market Cap of Shakti Pumps (India) Ltd?

The Market Cap of Shakti Pumps (India) Ltd is 8,950 Cr..

What is the current Stock Price of Shakti Pumps (India) Ltd as on 14 November 2024?

The current stock price of Shakti Pumps (India) Ltd as on 14 November 2024 is ₹4,467.

What is the High / Low of Shakti Pumps (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Shakti Pumps (India) Ltd stocks is 5,151/929.

What is the Stock P/E of Shakti Pumps (India) Ltd?

The Stock P/E of Shakti Pumps (India) Ltd is 27.2.

What is the Book Value of Shakti Pumps (India) Ltd?

The Book Value of Shakti Pumps (India) Ltd is 470.

What is the Dividend Yield of Shakti Pumps (India) Ltd?

The Dividend Yield of Shakti Pumps (India) Ltd is 0.01 %.

What is the ROCE of Shakti Pumps (India) Ltd?

The ROCE of Shakti Pumps (India) Ltd is 31.4 %.

What is the ROE of Shakti Pumps (India) Ltd?

The ROE of Shakti Pumps (India) Ltd is 24.2 %.

What is the Face Value of Shakti Pumps (India) Ltd?

The Face Value of Shakti Pumps (India) Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Shakti Pumps (India) Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE