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Last Updated on: 21 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Shakti Pumps (India) Ltd

Basic Stock Data

Last Updated: July 20, 2024, 10:37 pm

Market Cap 7,816 Cr.
Current Price 3,901
High / Low4,690/611
Stock P/E33.5
Book Value 377
Dividend Yield0.05 %
ROCE31.4 %
ROE24.2 %
Face Value 10.0
PEG Ratio0.24

Data Source: screener.in

Competitors of Shakti Pumps (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
KSB Ltd 16,484 Cr. 4,7365,300/2,15177.6 3740.37 %23.3 %17.1 % 10.0
Latteys Industries Ltd 114 Cr. 19.945.5/13.071.9 3.210.00 %11.8 %9.00 % 2.00
Industry Average8,299.00 Cr2,377.9574.75188.610.19%17.55%13.05%6.00

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: July 11, 2024, 9:32 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 9:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2092922972644284355443839301,1799681,371
Expenses1792492492443683564543717881,0689011,146
Operating Profit304347206078891214211067225
OPM %14%15%16%8%14%18%16%3%15%9%7%16%
Other Income71011923444634
Interest121313141714182116161919
Depreciation5710121314151718191819
Profit before tax2034363335460-221118232190
Tax %14%27%26%58%35%35%25%35%32%21%25%25%
Net Profit1725261223545-14766524142
EPS in Rs11.0316.3915.700.6411.7818.9624.53-7.6641.1335.2713.1370.73
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%

Growth

Compounded Sales Growth
10 Years:17%
5 Years:20%
3 Years:14%
TTM:42%
Compounded Profit Growth
10 Years:19%
5 Years:26%
3 Years:23%
TTM:487%
Stock Price CAGR
10 Years:34%
5 Years:64%
3 Years:68%
1 Year:527%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:17%
Last Year:24%

Last Updated: July 17, 2024, 5:11 pm

Balance Sheet

Last Updated: July 10, 2024, 9:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital151517171818181818181820
Reserves94115175170205235272247322375400736
Preference Capital0015150000000
Borrowings9211310210489110178193791067583
Other Liabilities446577751069411583251364232611
Total Liabilities2453083713664194575835416718647251,450
Fixed Assets8090106110121121140153147146147150
CWIP02580012111238
Investments000000000000
Other Assets1652172612482983364313875227175771,263
Total Assets2453083713664194575835416718647251,450

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-62.00-70.00-70.00-99.00-29.00-32.00-89.00-181.0063.004.00-8.00142.00

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters54.66%54.66%54.66%54.82%54.82%54.82%55.95%56.14%56.22%56.22%56.22%51.57%
FIIs2.64%0.00%1.47%0.44%0.27%0.34%0.36%0.35%0.39%0.64%0.49%0.77%
DIIs1.17%2.51%0.07%0.08%0.06%0.00%0.00%0.00%0.15%0.22%0.31%8.68%
Public41.53%42.82%43.79%44.66%44.85%44.83%43.68%43.53%43.23%42.93%43.00%38.96%
No. of Shareholders31,15435,70339,83942,01841,65942,78444,27342,63645,54145,27947,50252,943

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: 3,057.87

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.

Overvalued: 21.61% compared to the current price 3901

Intrinsic Value: 7,334.52

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 88.02% compared to the current price 3901

Last 5 Year EPS CAGR: 139.86%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (278.83 cr) compared to borrowings (112.83 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (396.00 cr) and profit (52.75 cr) over the years.
  1. The stock has a low average ROCE of 14.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 153.33, which may not be favorable.
  3. 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: %)
      • 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: %)
      • 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: 33.5 (Industry average Stock P/E: )
      • 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: 0.10
      • 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

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 454774info@shaktipumpsindia.com
http://www.shaktipumps.com
Management
NamePosition Held
Mr. Dinesh PatidarChairman & Wholetime Director
Mr. Ramesh PatidarManaging Director
Mr. Sunil PatidarWhole Time Director
Mr. Navin Sunderlal PatwaIndependent Director
Mr. Keyur Bipinchandra ThakerIndependent Director
Mrs. Nishtha NeemaIndependent Woman Director

FAQ

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

The latest fair value of Shakti Pumps (India) Ltd is ₹3057.87.

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

The Market Cap of Shakti Pumps (India) Ltd is 7,816 Cr..

What is the current Stock Price of Shakti Pumps (India) Ltd as on 21 July 2024?

The current stock price of Shakti Pumps (India) Ltd as on 21 July 2024 is 3,901.

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 4,690/611.

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

The Stock P/E of Shakti Pumps (India) Ltd is 33.5.

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

The Book Value of Shakti Pumps (India) Ltd is 377.

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

The Dividend Yield of Shakti Pumps (India) Ltd is 0.05 %.

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