Recent Price Movement and Market Context
On 4 December 2025, Shakti Pumps (India) touched its lowest price point in the last year at Rs.625.7. This decline comes despite the broader market showing resilience, with the Sensex recovering from an initial negative opening to close 0.21% higher at 85,284.08 points. The benchmark index remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, signalling a generally bullish market environment.
In contrast, Shakti Pumps (India) is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent weakness in the stock’s price momentum. The stock’s performance over the past year has been notably subdued, with a return of -19.68%, compared to the Sensex’s positive return of 5.33% over the same period.
Performance Relative to Sector and Market
The stock operates within the Compressors, Pumps & Diesel Engines sector, which has seen mixed performance. On the day Shakti Pumps hit its 52-week low, it outperformed its sector by 0.53%, despite the overall downward trend in its price. However, the stock’s underperformance over the last year is evident when compared to the broader BSE500 index, which has generated a return of 2.52% in the same timeframe.
Shakti Pumps’ 52-week high was Rs.1,398, highlighting the extent of the price contraction over the past year. This decline reflects a combination of factors affecting the company’s valuation and market sentiment.
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Financial Metrics and Valuation Insights
Shakti Pumps (India) exhibits a Return on Capital Employed (ROCE) of 31.2%, which is indicative of strong capital efficiency. The company’s enterprise value to capital employed ratio stands at 4.4, suggesting a relatively high valuation compared to its capital base. This premium valuation is notable when contrasted with the average historical valuations of its peers within the Compressors, Pumps & Diesel Engines sector.
Despite the stock’s negative price returns over the past year, the company’s profits have shown a rise of 22.2%, reflecting growth in earnings. The Price/Earnings to Growth (PEG) ratio is recorded at 1, which aligns with a valuation that factors in earnings growth.
Profitability and Cash Flow Considerations
Operating cash flow for the year is reported at Rs.20.49 crores, which is the lowest level observed in recent periods. The operating profit to interest coverage ratio for the quarter stands at 10.22 times, indicating the company’s capacity to meet interest obligations from operating profits. However, profit before tax excluding other income for the quarter is Rs.115.98 crores, reflecting a decline of 12.61% compared to previous periods.
These figures suggest a mixed financial profile, with strong profitability metrics tempered by pressures on cash flow and pre-tax earnings.
Growth and Debt Profile
Shakti Pumps (India) has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 40.28% and operating profit growing by 93.48%. The company maintains a low debt to EBITDA ratio of 0.76 times, indicating a conservative leverage position and a strong ability to service its debt obligations.
The majority shareholding remains with promoters, providing a stable ownership structure.
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Summary of Market Position and Recent Trends
Over the last year, Shakti Pumps (India) has underperformed relative to the broader market indices and its sector peers. While the BSE Mid Cap index has gained 0.25% on the day the stock hit its 52-week low, Shakti Pumps has experienced a decline in price and remains below key technical levels. The stock’s current valuation reflects a premium stance despite the subdued price performance, supported by solid profitability and growth metrics.
The company’s ability to maintain a strong ROCE and low leverage ratio underlines its fundamental strength, even as the stock price navigates a challenging phase. Investors and market participants will note the divergence between the company’s operational growth and its recent price trajectory.
Conclusion
Shakti Pumps (India) reaching a 52-week low of Rs.625.7 marks a notable point in its recent market journey. The stock’s decline over consecutive sessions, combined with its position below all major moving averages, highlights current market pressures. Nonetheless, the company’s financial data reveals a complex picture of strong profitability and growth alongside valuation considerations and earnings fluctuations. This multifaceted profile is reflected in the stock’s performance relative to the broader market and sector indices.
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