Recent Price Movement and Market Context
On 2 December 2025, Shakti Pumps (India) recorded its lowest price in the past year at Rs.652.5. This price point represents a notable drop from its 52-week high of Rs.1,398, reflecting a decline of over 53%. The stock has been on a downward trajectory for the last two consecutive days, with a cumulative return loss of approximately 4.11% during this period. Today’s performance also showed underperformance relative to its sector, with the stock lagging by 1.37% compared to peers in the Compressors, Pumps & Diesel Engines sector.
The broader market, represented by the Sensex, opened lower at 85,325.51 points, down 316.39 points or 0.37%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, trading just 0.97% below that peak. The index continues to trade above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish trend in the broader market. In contrast, Shakti Pumps is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained downward pressure on the stock.
Financial Performance and Valuation Metrics
Over the past year, Shakti Pumps (India) has recorded a total return of -17.78%, significantly underperforming the Sensex, which has delivered a positive return of 6.33% over the same period. This divergence underscores the stock’s relative weakness within the market.
From a profitability standpoint, the company’s profit before tax (PBT) excluding other income for the latest quarter stood at Rs.115.98 crores, reflecting a decline of 12.61% compared to the previous period. Operating cash flow for the year is reported at Rs.20.49 crores, which is among the lowest levels observed recently. The operating profit to interest coverage ratio for the quarter is at 10.22 times, indicating the company’s capacity to meet interest obligations but at a reduced margin compared to prior periods.
Shakti Pumps maintains a return on capital employed (ROCE) of 31.2%, which is relatively high and suggests efficient use of capital. However, the enterprise value to capital employed ratio stands at 4.5, signalling a valuation premium relative to the company’s capital base. This premium is also evident when compared to historical valuations of its peers within the sector.
Despite the stock’s negative return over the last year, the company’s profits have shown growth of 22.2%, and the price-to-earnings-to-growth (PEG) ratio is calculated at 1.1. These figures indicate that while earnings have expanded, the market valuation has not aligned proportionately with this growth.
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Long-Term Fundamentals and Debt Position
Shakti Pumps (India) demonstrates strong long-term fundamental strength, with an average ROCE of 26.83% over recent years. The company’s net sales have grown at an annual rate of 40.28%, while operating profit has expanded by 93.48%, reflecting robust growth in core business operations.
In terms of financial leverage, the company maintains a low debt-to-EBITDA ratio of 0.76 times, indicating a conservative approach to debt and a strong ability to service its obligations. This low leverage supports financial stability despite the recent stock price pressures.
Shareholding and Market Position
The majority shareholding in Shakti Pumps (India) is held by promoters, which often suggests a stable ownership structure. The company operates within the Compressors, Pumps & Diesel Engines sector, a segment that has experienced mixed performance amid varying demand conditions and competitive pressures.
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Summary of Key Metrics
To summarise, Shakti Pumps (India) is currently trading at Rs.652.5, its lowest level in the past 52 weeks. The stock’s performance over the last year has lagged behind the broader market, with a negative return contrasting with positive returns from the Sensex and BSE500 indices. While profitability metrics such as ROCE and profit growth remain strong, valuation multiples suggest the stock is priced at a premium relative to capital employed and peer averages.
The company’s ability to generate operating cash flow and cover interest expenses has shown some moderation, and the stock’s position below all major moving averages reflects ongoing market caution. Nonetheless, the firm’s solid sales growth, operating profit expansion, and low leverage provide a foundation of financial strength amid the current price weakness.
Market Environment and Sectoral Performance
The Compressors, Pumps & Diesel Engines sector has experienced varied performance in recent months, with some companies maintaining steady growth while others face headwinds. Shakti Pumps’ recent price movement and financial data suggest that it is currently navigating a period of adjustment within this competitive landscape.
Investors and market participants will continue to monitor the company’s financial results and market developments closely as the stock remains below key technical levels and trades at a discount to its previous highs.
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