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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shanthi Gears Ltd

About the Company - Shanthi Gears Ltd

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. 337.07 Cr. and Equity Capital is Rs. 7.67 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Gears & Drive304-A, Trichy Road, Singanallur, Coimbatore Tamil Nadu 641005cs@shanthigears.murugappa.com
http://www.shanthigears.com
Management
NamePosition Held
Mr. L RamkumarIndependent Director
Mr. J BalamuruganIndependent Director
Ms. Soundara KumarIndependent Director
Dr. S K SudararamanIndependent Director
Mr. Mukesh AhujaNon Executive Director
Mr. Krishna SamarajIndependent Director
Mr. M A M ArunachalamChairman
Mr. M KarunakaranWhole Time Director
Mr. Arun VenkatachalamNon Executive Director

Shanthi Gears Ltd. Share Price Update

Share PriceValue
Today₹512.20
Previous Day₹525.55

Basic Stock Data of Shanthi Gears Ltd

Market Cap 4,031 Cr.
Current Price 525
High / Low645/317
Stock P/E53.0
Book Value 42.6
Dividend Yield0.95 %
ROCE32.1 %
ROE23.8 %
Face Value 1.00

Data Source: screener.in

Competitors of Shanthi Gears Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
The Hi-Tech Gears Ltd 923 Cr. 492519/24119.5 2320.49 %8.13 %6.55 % 10.0
Industry Average923 Cr49219.52320.49%8.13%6.55%10

Shanthi Gears Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales657267729510499109115123121135126
Expenses5460556077858187929798107102
Operating Profit11121212171918222327232923
OPM %16%16%18%16%18%18%18%20%20%22%19%21%19%
Other Income2322222333444
Interest0000000000000
Depreciation2233333333333
Profit before tax10121211171918232327243024
Tax %24%23%25%30%20%35%24%26%25%27%25%29%27%
Net Profit8998141213171819182117
EPS in Rs1.001.231.121.031.791.591.752.162.292.542.362.742.27

Shanthi Gears Ltd Quarterly Chart

Shanthi Gears Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales172146155155164183214242242216337446495
Expenses108102113136134147177200208189277355393
Operating Profit654442183136374135276090102
OPM %38%30%27%12%19%20%17%17%14%12%18%20%21%
Other Income58101291112127891114
Interest1100000000000
Depreciation272926171718161189101112
Profit before tax422226132328334233265990104
Tax %32%30%29%29%23%21%14%21%23%23%28%26%
Net Profit2815189182329332520426776
EPS in Rs3.441.892.251.142.172.753.504.083.282.635.548.749.93
Dividend Payout %29%32%44%44%23%27%29%147%61%57%45%57%

Shanthi Gears Ltd Profit & Loss Yearly Chart

Shanthi Gears Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:16%
3 Years:23%
TTM:19%
Compounded Profit Growth
10 Years:16%
5 Years:19%
3 Years:39%
TTM:27%
Stock Price CAGR
10 Years:24%
5 Years:35%
3 Years:61%
1 Year:61%
Return on Equity
10 Years:10%
5 Years:14%
3 Years:17%
Last Year:24%

Shanthi Gears Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital8888888888888
Reserves240249258263276298310294221229252295319
Borrowings4000000000000
Other Liabilities373131363441425154888176103
Total Liabilities289288298306318348360353283325341378430
Fixed Assets1381169582666557596074667069
CWIP6444010060321
Investments038501663701141247947505777
Other Assets145131149205189212189170138205221248283
Total Assets289288298306318348360353283325341378430

Shanthi Gears Ltd Reserves and Borrowings Chart

Shanthi Gears Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 284929-64614422756313563
Cash from Investing Activity -4-67-1210-43-13-264024-18-16-26
Cash from Financing Activity -16-14-15-5-50-17-49-98-12-19-23
Net Cash Flow8-322-1-21-118-181-114

Shanthi Gears Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days516364878692958558807856
Inventory Days400305335371403397238237192275141113
Days Payable112413213412913296105951939774
Cash Conversion Cycle44034426732535935723721815416312295
Working Capital Days120131135180308317230135104876956
ROCE %17%8%10%5%8%10%10%13%12%11%24%32%

Shanthi Gears Ltd Financial Efficiency Indicators Chart

Shanthi Gears Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters70.47%70.47%70.47%70.47%70.47%70.47%70.47%70.47%70.47%70.47%70.47%70.47%
FIIs4.48%4.73%4.66%3.07%2.90%2.96%2.97%3.64%3.70%3.73%3.61%3.44%
DIIs1.17%1.02%0.74%0.73%0.89%0.98%0.99%0.88%0.84%0.68%0.62%0.58%
Public23.87%23.78%24.13%25.73%25.74%25.59%25.54%25.01%24.98%25.11%25.30%25.51%
No. of Shareholders16,63416,98719,91322,88920,50824,34423,88124,54724,01626,58329,39330,329

Shanthi Gears Ltd Shareholding Pattern Chart

No. of Shanthi Gears Ltd Shareholders

Shanthi Gears Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Bank of India Small Cap Fund2090001.4812.55
Motilal Oswal Nifty Microcap 250 Index Fund250680.241.51

Shanthi Gears Ltd ROCE Trend

Shanthi Gears Ltd EPS Trend

Shanthi Gears Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)8.745.542.633.284.08
Diluted EPS (Rs.)8.745.542.633.284.08
Cash EPS (Rs.)10.166.893.784.385.38
Book Value[Excl.RevalReserv]/Share (Rs.)39.4233.8930.9229.8136.97
Book Value[Incl.RevalReserv]/Share (Rs.)39.4233.8930.9229.8136.97
Dividend / Share (Rs.)5.002.501.502.006.00
Revenue From Operations / Share (Rs.)58.1043.9528.1031.5929.74
PBDIT / Share (Rs.)13.189.014.555.366.50
PBIT / Share (Rs.)11.767.663.404.265.20
PBT / Share (Rs.)11.767.663.404.265.20
Net Profit / Share (Rs.)8.745.542.633.284.08
PBDIT Margin (%)22.6720.5016.2016.9521.84
PBIT Margin (%)20.2317.4212.0913.4917.47
PBT Margin (%)20.2317.4212.0913.4917.47
Net Profit Margin (%)15.0412.599.3510.3913.72
Return on Networth / Equity (%)22.1716.338.5011.0111.04
Return on Capital Employeed (%)29.7822.5110.8814.2013.99
Return On Assets (%)17.7412.466.198.909.45
Asset Turnover Ratio (%)1.241.010.700.760.68
Current Ratio (X)3.602.992.483.325.45
Quick Ratio (X)2.722.191.572.164.03
Inventory Turnover Ratio (X)3.282.281.551.711.79
Dividend Payout Ratio (NP) (%)34.3145.1657.0673.48122.51
Dividend Payout Ratio (CP) (%)29.5236.2939.6455.1292.92
Earning Retention Ratio (%)65.6954.8442.9426.52-22.51
Cash Earning Retention Ratio (%)70.4863.7160.3644.887.08
Enterprise Value (Cr.)2700.271315.92917.83508.451055.43
EV / Net Operating Revenue (X)6.063.904.262.104.34
EV / EBITDA (X)26.7219.0426.2812.3819.88
MarketCap / Net Operating Revenue (X)6.264.104.522.114.43
Retention Ratios (%)65.6854.8342.9326.51-22.51
Price / BV (X)9.235.324.112.233.56
Price / Net Operating Revenue (X)6.264.104.522.114.43
EarningsYield0.020.030.020.040.03

Shanthi Gears Ltd Profitability Ratios (%)

Shanthi Gears Ltd Liquidity Ratios

Shanthi Gears Ltd Liquidity Ratios (%)

Shanthi Gears Ltd Interest Coverage Ratios (X)

Shanthi Gears Ltd Valuation Ratios

Fair Value / Intrinsic Value of Shanthi Gears Ltd

Fair Value: ₹542.46

The stock is undervalued by 3.33% compared to the current price ₹525

*Investments are subject to market risks

Strength and Weakness of Shanthi Gears Ltd

StrengthWeakness
  1. The company has higher reserves (269.54 cr) compared to borrowings (0.31 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (243.62 cr) and profit (41.62 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 7.72 and average Dividend Yield of 16.14%.
  2. The stock has a low average ROCE of 13.33%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 156.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 256.75, which may not be favorable.

Should I Buy Shanthi Gears Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Shanthi Gears Ltd:
    1. Net Profit Margin: 15.04%
      • 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: 29.78% (Industry Average ROCE: 8.13%)
      • 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. Interest Coverage Ratio (Post Tax): N/A
      • 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.
    4. Quick Ratio: 2.72
      • 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.
    5. ✗ Stock P/E: 53.0 (Industry average Stock P/E: 19.5)
      • 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.
    6. ✗ Total Debt / Equity: N/A
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Shanthi Gears 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