Shanthi Gears Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: June 29, 2025, 8:00 pm

Market Cap	3,776 Cr.
Current Price	492
High / Low	704/386
Stock P/E	39.3
Book Value	52.5
Dividend Yield	1.02 %
ROCE	34.8 %
ROE	25.7 %
Face Value	1.00
PEG Ratio	1.07

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Shanthi Gears Ltd

Competitors of Shanthi Gears Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
Shanthi Gears Ltd	3,776 Cr.	492	704/386	39.3	52.5	1.02 %	34.8 %	25.7 %	1.00
JTEKT India Ltd	3,646 Cr.	143	225/106	46.4	30.0	0.41 %	15.9 %	12.4 %	1.00
Industry Average	3,711.00 Cr	317.50		42.85	41.25	0.72%	25.35%	19.05%	1.00

All Competitor Stocks of Shanthi Gears Ltd

Quarterly Result

Metric	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025
Sales	104	99	109	115	123	121	135	126	154	139	155	158	153
Expenses	85	81	87	92	97	98	107	102	127	110	121	123	122
Operating Profit	19	18	22	23	27	23	29	23	27	29	34	35	31
OPM %	18%	18%	20%	20%	22%	19%	21%	19%	17%	21%	22%	22%	20%
Other Income	2	2	3	3	3	4	4	4	10	3	3	4	4
Interest	0	0	0	0	0	0	0	0	0	0	0	0	0
Depreciation	3	3	3	3	3	3	3	3	4	3	3	3	4
Profit before tax	19	18	23	23	27	24	30	24	32	29	34	35	31
Tax %	35%	24%	26%	25%	27%	25%	29%	27%	20%	25%	25%	26%	28%
Net Profit	12	13	17	18	19	18	21	17	26	22	26	26	22
EPS in Rs	1.59	1.75	2.16	2.29	2.54	2.36	2.74	2.27	3.35	2.82	3.34	3.43	2.93

Last Updated: May 31, 2025, 7:50 am

Below is a detailed analysis of the quarterly data for Shanthi Gears Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Sales, as of Mar 2025, the value is 153.00 Cr.. The value appears to be declining and may need further review. It has decreased from 158.00 Cr. (Dec 2024) to 153.00 Cr., marking a decrease of 5.00 Cr..
For Expenses, as of Mar 2025, the value is 122.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 123.00 Cr. (Dec 2024) to 122.00 Cr., marking a decrease of 1.00 Cr..
For Operating Profit, as of Mar 2025, the value is 31.00 Cr.. The value appears to be declining and may need further review. It has decreased from 35.00 Cr. (Dec 2024) to 31.00 Cr., marking a decrease of 4.00 Cr..
For OPM %, as of Mar 2025, the value is 20.00%. The value appears to be declining and may need further review. It has decreased from 22.00% (Dec 2024) to 20.00%, marking a decrease of 2.00%.
For Other Income, as of Mar 2025, the value is 4.00 Cr.. The value remains steady. There is no change compared to the previous period (Dec 2024) which recorded 4.00 Cr..
For Interest, as of Mar 2025, the value is 0.00 Cr.. The value remains steady. There is no change compared to the previous period (Dec 2024) which recorded 0.00 Cr..
For Depreciation, as of Mar 2025, the value is 4.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 3.00 Cr. (Dec 2024) to 4.00 Cr., marking an increase of 1.00 Cr..
For Profit before tax, as of Mar 2025, the value is 31.00 Cr.. The value appears to be declining and may need further review. It has decreased from 35.00 Cr. (Dec 2024) to 31.00 Cr., marking a decrease of 4.00 Cr..
For Tax %, as of Mar 2025, the value is 28.00%. The value appears to be increasing, which may not be favorable. It has increased from 26.00% (Dec 2024) to 28.00%, marking an increase of 2.00%.
For Net Profit, as of Mar 2025, the value is 22.00 Cr.. The value appears to be declining and may need further review. It has decreased from 26.00 Cr. (Dec 2024) to 22.00 Cr., marking a decrease of 4.00 Cr..
For EPS in Rs, as of Mar 2025, the value is 2.93. The value appears to be declining and may need further review. It has decreased from 3.43 (Dec 2024) to 2.93, marking a decrease of 0.50.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 16, 2025, 4:10 pm

Metric	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Sales	155	155	164	183	214	242	242	216	337	446	536	605
Expenses	113	136	134	147	177	200	208	189	277	355	434	476
Operating Profit	42	18	31	36	37	41	35	27	60	90	102	129
OPM %	27%	12%	19%	20%	17%	17%	14%	12%	18%	20%	19%	21%
Other Income	10	12	9	11	12	12	7	8	9	11	21	15
Interest	0	0	0	0	0	0	0	0	0	0	1	0
Depreciation	26	17	17	18	16	11	8	9	10	11	13	13
Profit before tax	26	13	23	28	33	42	33	26	59	90	110	130
Tax %	29%	29%	23%	21%	14%	21%	23%	23%	28%	26%	25%	26%
Net Profit	18	9	18	23	29	33	25	20	42	67	82	96
EPS in Rs	2.25	1.14	2.17	2.75	3.50	4.08	3.28	2.63	5.54	8.74	10.72	12.52
Dividend Payout %	44%	44%	23%	27%	29%	147%	61%	57%	45%	57%	47%	40%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024	2024-2025
YoY Net Profit Growth (%)	-50.00%	100.00%	27.78%	26.09%	13.79%	-24.24%	-20.00%	110.00%	59.52%	22.39%	17.07%
Change in YoY Net Profit Growth (%)	0.00%	150.00%	-72.22%	-1.69%	-12.29%	-38.04%	4.24%	130.00%	-50.48%	-37.14%	-5.31%

Shanthi Gears Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:	15%
5 Years:	20%
3 Years:	22%
TTM:	13%

Compounded Profit Growth
10 Years:	27%
5 Years:	31%
3 Years:	31%
TTM:	19%

Stock Price CAGR
10 Years:	17%
5 Years:	42%
3 Years:	31%
1 Year:	-18%

Return on Equity
10 Years:	15%
5 Years:	21%
3 Years:	25%
Last Year:	26%

Last Updated: Unknown

Balance Sheet

Last Updated: May 13, 2025, 2:45 pm

Month	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Equity Capital	8	8	8	8	8	8	8	8	8	8	8	8
Reserves	258	263	276	298	310	294	221	229	252	295	338	395
Borrowings	0	0	0	0	0	0	0	0	0	0	0	0
Other Liabilities	31	36	34	41	42	51	54	88	81	75	97	101
Total Liabilities	298	306	318	348	360	353	283	325	341	377	443	504
Fixed Assets	95	82	66	65	57	59	60	74	66	70	72	79
CWIP	4	4	0	1	0	0	6	0	3	2	4	5
Investments	50	16	63	70	114	124	79	47	50	57	45	88
Other Assets	149	205	189	212	189	170	138	205	221	248	321	332
Total Assets	298	306	318	348	360	353	283	325	341	377	443	504

Below is a detailed analysis of the balance sheet data for Shanthi Gears Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Equity Capital, as of Mar 2025, the value is 8.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 8.00 Cr..
For Reserves, as of Mar 2025, the value is 395.00 Cr.. The value appears strong and on an upward trend. It has increased from 338.00 Cr. (Mar 2024) to 395.00 Cr., marking an increase of 57.00 Cr..
For Borrowings, as of Mar 2025, the value is 0.00 Cr.. The value remains steady. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. There is no change compared to the previous period (Mar 2024) which recorded 0.00 Cr..
For Other Liabilities, as of Mar 2025, the value is 101.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 97.00 Cr. (Mar 2024) to 101.00 Cr., marking an increase of 4.00 Cr..
For Total Liabilities, as of Mar 2025, the value is 504.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 443.00 Cr. (Mar 2024) to 504.00 Cr., marking an increase of 61.00 Cr..
For Fixed Assets, as of Mar 2025, the value is 79.00 Cr.. The value appears strong and on an upward trend. It has increased from 72.00 Cr. (Mar 2024) to 79.00 Cr., marking an increase of 7.00 Cr..
For CWIP, as of Mar 2025, the value is 5.00 Cr.. The value appears strong and on an upward trend. It has increased from 4.00 Cr. (Mar 2024) to 5.00 Cr., marking an increase of 1.00 Cr..
For Investments, as of Mar 2025, the value is 88.00 Cr.. The value appears strong and on an upward trend. It has increased from 45.00 Cr. (Mar 2024) to 88.00 Cr., marking an increase of 43.00 Cr..
For Other Assets, as of Mar 2025, the value is 332.00 Cr.. The value appears strong and on an upward trend. It has increased from 321.00 Cr. (Mar 2024) to 332.00 Cr., marking an increase of 11.00 Cr..
For Total Assets, as of Mar 2025, the value is 504.00 Cr.. The value appears strong and on an upward trend. It has increased from 443.00 Cr. (Mar 2024) to 504.00 Cr., marking an increase of 61.00 Cr..

Notably, the Reserves (395.00 Cr.) exceed the Borrowings (0.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Month		Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity +	29	-6	46	14	42	27	56	31	35	63	36	91
Cash from Investing Activity +	-12	10	-43	-13	-26	40	24	-18	-16	-26	-12	-38
Cash from Financing Activity +	-15	-5	-5	0	-17	-49	-98	-12	-19	-23	-38	-38
Net Cash Flow	2	-1	-2	1	-1	18	-18	1	-1	14	-14	14

Free Cash Flow

Month	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Free Cash Flow	42.00	18.00	31.00	36.00	37.00	41.00	35.00	27.00	60.00	90.00	102.00	129.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	63	64	87	86	92	95	85	58	80	78	56	80
Inventory Days	305	335	371	403	397	238	237	192	275	141	113	121
Days Payable	24	132	134	129	132	96	105	95	193	97	73	85
Cash Conversion Cycle	344	267	325	359	357	237	218	154	163	122	96	116
Working Capital Days	131	135	180	308	317	230	135	104	87	69	56	134
ROCE %	8%	10%	5%	8%	10%	10%	13%	12%	11%	24%	32%	33%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024
Promoters	70.47%	70.47%	70.47%	70.47%	70.47%	70.47%	70.47%	70.47%	70.47%	70.47%	70.47%	70.47%
FIIs	2.90%	2.96%	2.97%	3.64%	3.70%	3.73%	3.61%	3.44%	3.49%	3.46%	3.29%	3.25%
DIIs	0.89%	0.98%	0.99%	0.88%	0.84%	0.68%	0.62%	0.58%	0.49%	0.51%	0.73%	0.73%
Public	25.74%	25.59%	25.54%	25.01%	24.98%	25.11%	25.30%	25.51%	25.54%	25.56%	25.50%	25.54%
No. of Shareholders	20,508	24,344	23,881	24,547	24,016	26,583	29,393	30,329	26,240	25,405	26,471	27,759

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Bank of India Small Cap Fund	209,000	1.48	12.55	209,000	2025-04-22 15:56:53	0%
Motilal Oswal Nifty Microcap 250 Index Fund	25,068	0.24	1.51	25,068	2025-04-22 15:56:53	0%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 25	Mar 24	Mar 23	Mar 22	Mar 21
FaceValue	1.00	1.00	1.00	1.00	1.00
Basic EPS (Rs.)	12.52	10.72	8.74	5.54	2.63
Diluted EPS (Rs.)	12.52	10.72	8.74	5.54	2.63
Cash EPS (Rs.)	14.25	12.45	10.16	6.89	3.78
Book Value[Excl.RevalReserv]/Share (Rs.)	52.54	45.02	39.42	33.89	30.92
Book Value[Incl.RevalReserv]/Share (Rs.)	52.54	45.02	39.42	33.89	30.92
Dividend / Share (Rs.)	5.00	5.00	5.00	2.50	1.50
Revenue From Operations / Share (Rs.)	78.83	69.89	58.10	43.95	28.10
PBDIT / Share (Rs.)	18.69	16.02	13.18	9.01	4.55
PBIT / Share (Rs.)	16.96	14.29	11.76	7.66	3.40
PBT / Share (Rs.)	16.96	14.29	11.76	7.66	3.40
Net Profit / Share (Rs.)	12.52	10.72	8.74	5.54	2.63
PBDIT Margin (%)	23.71	22.91	22.67	20.50	16.20
PBIT Margin (%)	21.51	20.45	20.23	17.42	12.09
PBT Margin (%)	21.51	20.45	20.23	17.42	12.09
Net Profit Margin (%)	15.88	15.34	15.04	12.59	9.35
Return on Networth / Equity (%)	23.82	23.81	22.17	16.33	8.50
Return on Capital Employeed (%)	32.21	31.70	29.78	22.51	10.88
Return On Assets (%)	19.04	18.57	17.74	12.46	6.19
Asset Turnover Ratio (%)	1.28	1.31	1.24	1.01	0.70
Current Ratio (X)	3.80	3.38	3.60	2.99	2.48
Quick Ratio (X)	3.00	2.50	2.72	2.19	1.57
Inventory Turnover Ratio (X)	3.40	3.45	3.28	2.28	1.55
Dividend Payout Ratio (NP) (%)	0.00	46.67	34.31	45.16	57.06
Dividend Payout Ratio (CP) (%)	0.00	40.21	29.52	36.29	39.64
Earning Retention Ratio (%)	0.00	53.33	65.69	54.84	42.94
Cash Earning Retention Ratio (%)	0.00	59.79	70.48	63.71	60.36
Enterprise Value (Cr.)	3551.65	4241.65	2700.27	1315.92	917.83
EV / Net Operating Revenue (X)	5.87	7.91	6.06	3.90	4.26
EV / EBITDA (X)	24.77	34.53	26.72	19.04	26.28
MarketCap / Net Operating Revenue (X)	5.98	7.93	6.26	4.10	4.52
Retention Ratios (%)	0.00	53.32	65.68	54.83	42.93
Price / BV (X)	8.97	12.31	9.23	5.32	4.11
Price / Net Operating Revenue (X)	5.98	7.93	6.26	4.10	4.52
EarningsYield	0.02	0.01	0.02	0.03	0.02

After reviewing the key financial ratios for Shanthi Gears Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Mar 25, the value is 1.00. This value is within the healthy range. There is no change compared to the previous period (Mar 24) which recorded 1.00.
For Basic EPS (Rs.), as of Mar 25, the value is 12.52. This value is within the healthy range. It has increased from 10.72 (Mar 24) to 12.52, marking an increase of 1.80.
For Diluted EPS (Rs.), as of Mar 25, the value is 12.52. This value is within the healthy range. It has increased from 10.72 (Mar 24) to 12.52, marking an increase of 1.80.
For Cash EPS (Rs.), as of Mar 25, the value is 14.25. This value is within the healthy range. It has increased from 12.45 (Mar 24) to 14.25, marking an increase of 1.80.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 25, the value is 52.54. It has increased from 45.02 (Mar 24) to 52.54, marking an increase of 7.52.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 25, the value is 52.54. It has increased from 45.02 (Mar 24) to 52.54, marking an increase of 7.52.
For Dividend / Share (Rs.), as of Mar 25, the value is 5.00. This value exceeds the healthy maximum of 3. There is no change compared to the previous period (Mar 24) which recorded 5.00.
For Revenue From Operations / Share (Rs.), as of Mar 25, the value is 78.83. It has increased from 69.89 (Mar 24) to 78.83, marking an increase of 8.94.
For PBDIT / Share (Rs.), as of Mar 25, the value is 18.69. This value is within the healthy range. It has increased from 16.02 (Mar 24) to 18.69, marking an increase of 2.67.
For PBIT / Share (Rs.), as of Mar 25, the value is 16.96. This value is within the healthy range. It has increased from 14.29 (Mar 24) to 16.96, marking an increase of 2.67.
For PBT / Share (Rs.), as of Mar 25, the value is 16.96. This value is within the healthy range. It has increased from 14.29 (Mar 24) to 16.96, marking an increase of 2.67.
For Net Profit / Share (Rs.), as of Mar 25, the value is 12.52. This value is within the healthy range. It has increased from 10.72 (Mar 24) to 12.52, marking an increase of 1.80.
For PBDIT Margin (%), as of Mar 25, the value is 23.71. This value is within the healthy range. It has increased from 22.91 (Mar 24) to 23.71, marking an increase of 0.80.
For PBIT Margin (%), as of Mar 25, the value is 21.51. This value exceeds the healthy maximum of 20. It has increased from 20.45 (Mar 24) to 21.51, marking an increase of 1.06.
For PBT Margin (%), as of Mar 25, the value is 21.51. This value is within the healthy range. It has increased from 20.45 (Mar 24) to 21.51, marking an increase of 1.06.
For Net Profit Margin (%), as of Mar 25, the value is 15.88. This value exceeds the healthy maximum of 10. It has increased from 15.34 (Mar 24) to 15.88, marking an increase of 0.54.
For Return on Networth / Equity (%), as of Mar 25, the value is 23.82. This value is within the healthy range. It has increased from 23.81 (Mar 24) to 23.82, marking an increase of 0.01.
For Return on Capital Employeed (%), as of Mar 25, the value is 32.21. This value is within the healthy range. It has increased from 31.70 (Mar 24) to 32.21, marking an increase of 0.51.
For Return On Assets (%), as of Mar 25, the value is 19.04. This value is within the healthy range. It has increased from 18.57 (Mar 24) to 19.04, marking an increase of 0.47.
For Asset Turnover Ratio (%), as of Mar 25, the value is 1.28. It has decreased from 1.31 (Mar 24) to 1.28, marking a decrease of 0.03.
For Current Ratio (X), as of Mar 25, the value is 3.80. This value exceeds the healthy maximum of 3. It has increased from 3.38 (Mar 24) to 3.80, marking an increase of 0.42.
For Quick Ratio (X), as of Mar 25, the value is 3.00. This value exceeds the healthy maximum of 2. It has increased from 2.50 (Mar 24) to 3.00, marking an increase of 0.50.
For Inventory Turnover Ratio (X), as of Mar 25, the value is 3.40. This value is below the healthy minimum of 4. It has decreased from 3.45 (Mar 24) to 3.40, marking a decrease of 0.05.
For Dividend Payout Ratio (NP) (%), as of Mar 25, the value is 0.00. This value is below the healthy minimum of 20. It has decreased from 46.67 (Mar 24) to 0.00, marking a decrease of 46.67.
For Dividend Payout Ratio (CP) (%), as of Mar 25, the value is 0.00. This value is below the healthy minimum of 20. It has decreased from 40.21 (Mar 24) to 0.00, marking a decrease of 40.21.
For Earning Retention Ratio (%), as of Mar 25, the value is 0.00. This value is below the healthy minimum of 40. It has decreased from 53.33 (Mar 24) to 0.00, marking a decrease of 53.33.
For Cash Earning Retention Ratio (%), as of Mar 25, the value is 0.00. This value is below the healthy minimum of 40. It has decreased from 59.79 (Mar 24) to 0.00, marking a decrease of 59.79.
For Enterprise Value (Cr.), as of Mar 25, the value is 3,551.65. It has decreased from 4,241.65 (Mar 24) to 3,551.65, marking a decrease of 690.00.
For EV / Net Operating Revenue (X), as of Mar 25, the value is 5.87. This value exceeds the healthy maximum of 3. It has decreased from 7.91 (Mar 24) to 5.87, marking a decrease of 2.04.
For EV / EBITDA (X), as of Mar 25, the value is 24.77. This value exceeds the healthy maximum of 15. It has decreased from 34.53 (Mar 24) to 24.77, marking a decrease of 9.76.
For MarketCap / Net Operating Revenue (X), as of Mar 25, the value is 5.98. This value exceeds the healthy maximum of 3. It has decreased from 7.93 (Mar 24) to 5.98, marking a decrease of 1.95.
For Retention Ratios (%), as of Mar 25, the value is 0.00. This value is below the healthy minimum of 30. It has decreased from 53.32 (Mar 24) to 0.00, marking a decrease of 53.32.
For Price / BV (X), as of Mar 25, the value is 8.97. This value exceeds the healthy maximum of 3. It has decreased from 12.31 (Mar 24) to 8.97, marking a decrease of 3.34.
For Price / Net Operating Revenue (X), as of Mar 25, the value is 5.98. This value exceeds the healthy maximum of 3. It has decreased from 7.93 (Mar 24) to 5.98, marking a decrease of 1.95.
For EarningsYield, as of Mar 25, the value is 0.02. This value is below the healthy minimum of 5. It has increased from 0.01 (Mar 24) to 0.02, marking an increase of 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Shanthi Gears Ltd as of July 4, 2025 is: 428.53

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 July 4, 2025, Shanthi Gears Ltd is Overvalued by 12.90% compared to the current share price 492.00

Intrinsic Value of Shanthi Gears Ltd as of July 4, 2025 is: 585.48

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 July 4, 2025, Shanthi Gears Ltd is Undervalued by 19.00% compared to the current share price 492.00

Last 5 Year EPS CAGR: 36.62%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (285.75 cr) compared to borrowings (0.00 cr), indicating strong financial stability. The company has shown consistent growth in sales (291.25 cr) and profit (51.08 cr) over the years.	The stock has a low average ROCE of 14.67%, which may not be favorable. The stock has a high average Working Capital Days of 157.17, which may not be favorable. The stock has a high average Cash Conversion Cycle of 229.83, 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 Shanthi Gears Ltd:
1. Net Profit Margin: 15.88%
  - 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: 32.21% (Industry Average ROCE: 25.35%)
  - 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%: 23.82% (Industry Average ROE: 19.05%)
  - 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): 0
  - 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: 3
  - 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: 39.3 (Industry average Stock P/E: 42.85)
  - 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
  - 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

Shanthi Gears Ltd. is a Public Limited Listed company incorporated on 01/07/1972 and has its registered office in the State of Tamil Nadu, India. Company's Corporate Identification Number(CIN) is L29130TZ1972PLC000649 and registration number is 000649. Currently Company is involved in the business activities of Manufacture of bearings, gears, gearing and driving elements. Company's Total Operating Revenue is Rs. 604.62 Cr. and Equity Capital is Rs. 7.67 Cr. for the Year ended 31/03/2025.

INDUSTRY	ADDRESS	CONTACT
Auto Ancl - Gears & Drive	304-A, Trichy Road, Singanallur, Coimbatore Tamil Nadu 641005	cs@shanthigears.murugappa.com http://www.shanthigears.com

Management
Name	Position Held
Mr. M A M Arunachalam	Chairman
Mr. M Karunakaran	WholeTime Director & CEO
Mr. Krishna Samaraj	Non Executive Director
Mr. L Ramkumar	Non Executive Director
Mr. J Balamurugan	Non Executive Director
Ms. Soundara Kumar	Non Executive Director
Mr. Mukesh Ahuja	Non Executive Director
Dr. S K Sudararaman	Non Executive Director
Mr. Arun Venkatachalam	Non Executive Director

FAQ

What is the intrinsic value of Shanthi Gears Ltd?

Shanthi Gears Ltd's intrinsic value (as of 04 July 2025) is 428.53 — 12.90% lower the current market price of 492.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 3,776 Cr. market cap, FY2025-2026 high/low of 704/386, reserves of 395 Cr, and liabilities of 504 Cr.

What is the Market Cap of Shanthi Gears Ltd?

The Market Cap of Shanthi Gears Ltd is 3,776 Cr..

What is the current Stock Price of Shanthi Gears Ltd as on 04 July 2025?

The current stock price of Shanthi Gears Ltd as on 04 July 2025 is 492.

What is the High / Low of Shanthi Gears Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Shanthi Gears Ltd stocks is ₹704/386.

What is the Stock P/E of Shanthi Gears Ltd?

The Stock P/E of Shanthi Gears Ltd is 39.3.

What is the Book Value of Shanthi Gears Ltd?

The Book Value of Shanthi Gears Ltd is 52.5.

What is the Dividend Yield of Shanthi Gears Ltd?

The Dividend Yield of Shanthi Gears Ltd is 1.02 %.

What is the ROCE of Shanthi Gears Ltd?

The ROCE of Shanthi Gears Ltd is 34.8 %.

What is the ROE of Shanthi Gears Ltd?

The ROE of Shanthi Gears Ltd is 25.7 %.

What is the Face Value of Shanthi Gears Ltd?

The Face Value of Shanthi Gears Ltd is 1.00.