Recent Price Movement and Market Context
On 3 December 2025, Shakti Pumps (India) recorded an intraday low of Rs.631.75, representing a 2.64% decline from the previous close. The stock underperformed its sector by 1.84% on the day, continuing a downward trend that has persisted over the last three sessions. This sequence of declines has brought the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained pressure on the share price.
In comparison, the Sensex opened flat but later fell by 236.07 points, or 0.26%, closing at 84,914.57. Despite this dip, the benchmark index remains 1.47% below its 52-week high of 86,159.02 and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the broader market.
One-Year Performance Analysis
Over the past year, Shakti Pumps (India) has experienced a negative return of 19.36%, a stark contrast to the Sensex’s positive return of 5.03% during the same period. This divergence highlights the stock’s relative underperformance within the market. The 52-week high for Shakti Pumps was Rs.1,398, underscoring the extent of the recent price decline.
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Financial Metrics and Valuation Considerations
Shakti Pumps (India) reported operating cash flow for the year at Rs.20.49 crores, which is among the lower levels observed recently. The operating profit to interest ratio for the quarter stands at 10.22 times, reflecting the company’s capacity to cover interest expenses, though this figure is at a comparatively low point. Profit before tax excluding other income for the quarter was Rs.115.98 crores, showing a decline of 12.61% compared to previous periods.
The company’s return on capital employed (ROCE) is recorded at 31.2%, indicating a strong utilisation of capital. However, the enterprise value to capital employed ratio is 4.5, suggesting a relatively high valuation compared to peers. The price-to-earnings-to-growth (PEG) ratio is 1.1, which aligns with a valuation that factors in the company’s profit growth rate of 22.2% over the past year.
Growth and Debt Profile
Shakti Pumps (India) has demonstrated robust long-term growth, with net sales expanding at an annual rate of 40.28% and operating profit increasing by 93.48%. The company maintains a low debt-to-EBITDA ratio of 0.76 times, indicating a manageable debt burden and a strong ability to service its liabilities. The majority shareholding remains with promoters, reflecting stable ownership.
Comparative Market Performance
While the BSE500 index has generated a return of 2.67% over the last year, Shakti Pumps (India) has lagged significantly behind with negative returns of 19.36%. This underperformance is notable given the company’s strong fundamental growth metrics, suggesting that valuation and market sentiment factors have influenced the stock’s price trajectory.
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Summary of Key Factors Influencing the Stock
The recent decline to a 52-week low reflects a combination of factors including the stock’s valuation premium relative to peers, a dip in quarterly profit before tax excluding other income, and a subdued operating cash flow figure. Despite these headwinds, the company’s long-term growth rates in sales and operating profit remain strong, supported by a solid return on capital employed and a conservative debt profile.
Market conditions have also played a role, with the stock underperforming the broader indices and its sector peers over the past year. The current trading below all major moving averages indicates a cautious market stance towards the stock at present.
Conclusion
Shakti Pumps (India) has reached a significant price milestone by touching its 52-week low of Rs.631.75, reflecting a period of price correction amid mixed financial signals and market dynamics. While the company’s fundamentals show strength in growth and capital efficiency, the stock’s recent performance highlights the challenges it faces in aligning market valuation with its operational metrics.
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