Recent Price Movement and Market Context
On 5 December 2025, Shakti Pumps (India) recorded its lowest price in the last year at Rs.607.55. This level represents a decline of over 10% during the last five trading sessions, with the stock losing approximately 10.15% in returns over this period. The stock’s performance today also lagged behind its sector, underperforming by 0.79%. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening, recovered to close marginally higher by 0.05%, trading at 85,307.51 points. The index remains close to its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks and bullish moving average patterns. This divergence highlights the relative weakness of Shakti Pumps (India) compared to the overall market environment.
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Financial Performance Indicators
Over the past year, Shakti Pumps (India) has recorded a negative return of 21.00%, contrasting with the Sensex’s positive return of 4.35% during the same period. The stock’s 52-week high was Rs.1,398, indicating a substantial reduction in market value from its peak.
Examining the company’s financial metrics reveals a mixed picture. Operating cash flow for the year stands at Rs.20.49 crores, which is comparatively low. Interest expenses for the quarter have risen by 36.27%, reaching Rs.13.30 crores. The ratio of operating profit to interest for the quarter is at 10.22 times, the lowest recorded, suggesting tighter coverage of interest obligations.
Despite these figures, the company maintains a strong long-term fundamental profile. The average Return on Capital Employed (ROCE) is 26.83%, reflecting efficient capital utilisation over time. Net sales have grown at an annual rate of 40.28%, while operating profit has expanded by 93.48%, indicating robust growth in core business operations. The company’s debt servicing capacity remains solid, with a low Debt to EBITDA ratio of 0.76 times.
Valuation metrics show a ROCE of 31.2 and an Enterprise Value to Capital Employed ratio of 4.3, which suggests a fair valuation relative to the company’s capital base. However, the stock is trading at a premium compared to the average historical valuations of its peers within the Compressors, Pumps & Diesel Engines sector. Over the last year, profits have increased by 22.2%, while the stock price has declined, resulting in a PEG ratio of 1.
Shareholding and Market Position
The majority ownership of Shakti Pumps (India) remains with promoters, indicating concentrated control over the company’s strategic direction. The company operates within a sector that has seen varied performance, with the broader BSE500 index generating a modest return of 1.59% over the past year, while Shakti Pumps (India) has lagged behind significantly.
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Summary of Market and Stock Dynamics
Shakti Pumps (India) is currently experiencing a period of price weakness, reflected in its new 52-week low and underperformance relative to both its sector and the broader market indices. The stock’s trading below all major moving averages underscores the prevailing downward momentum. While the company’s recent financial data points to some pressures, particularly in cash flow and interest expenses, its long-term fundamentals remain comparatively strong, with healthy growth rates in sales and profits and a solid capital return profile.
Market conditions have been favourable for large-cap stocks, with the Sensex maintaining a position near its yearly highs and supported by bullish technical indicators. This environment contrasts with the performance of Shakti Pumps (India), which has not mirrored the broader market’s gains over the past year.
Investors and market watchers will note the divergence between the company’s operational growth and its stock price trajectory, which has resulted in a premium valuation relative to peers despite the recent price decline. The company’s ability to manage its debt and maintain profitability metrics will continue to be key factors in its market assessment.
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