Recent Price Movement and Market Context
On 21 Nov 2025, Shakti Pumps (India) touched its lowest price point in the past year at Rs.687. This level is notably below its 52-week high of Rs.1,398, indicating a substantial contraction in market value over the last twelve months. The stock’s performance today slightly outpaced its sector by 0.26%, despite the overall negative trend.
The broader market, represented by the Sensex, opened lower by 285.28 points and was trading at 85,331.00, down 0.35%. The Sensex remains close to its 52-week high of 85,801.70, just 0.55% away, and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. This contrasts with Shakti Pumps’ position, which is trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a weaker technical stance.
Performance Comparison Over One Year
Over the past year, Shakti Pumps (India) has recorded a return of -15.43%, underperforming the Sensex, which has shown a positive return of 10.60% during the same period. The BSE500 index also posted gains of 8.79%, further highlighting the stock’s relative underperformance within the broader market context.
This divergence suggests that while the market has generally trended upwards, Shakti Pumps has faced pressures that have weighed on its share price, resulting in a notable lag behind benchmark indices.
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Financial Metrics and Valuation Insights
Shakti Pumps (India) exhibits a Return on Capital Employed (ROCE) of 31.2%, indicating a strong capital efficiency relative to its peers. However, the company’s enterprise value to capital employed ratio stands at 4.8, suggesting a premium valuation compared to historical averages within the sector.
Despite the premium valuation, the company’s operating cash flow for the year is recorded at Rs.20.49 crores, which is the lowest in recent periods. The operating profit to interest coverage ratio for the quarter is at 10.22 times, reflecting the company’s capacity to meet interest obligations, albeit at a reduced margin compared to previous quarters.
Profit after tax (PAT) for the quarter is Rs.90.71 crores, showing a decline of 10.6% relative to prior quarters. This contraction in profitability has contributed to the stock’s subdued performance.
Growth and Debt Servicing Capacity
On a positive note, Shakti Pumps has demonstrated healthy long-term growth trends. Net sales have expanded at an annual rate of 40.28%, while operating profit has grown by 93.48% over the same period. This growth trajectory underscores the company’s ability to scale its operations effectively.
The company’s debt servicing capability remains robust, with a low debt to EBITDA ratio of 0.76 times, indicating manageable leverage and a strong capacity to meet debt obligations without undue strain.
Shareholding and Industry Position
The majority shareholding in Shakti Pumps (India) is held by promoters, which often reflects a stable ownership structure. The company operates within the Compressors, Pumps & Diesel Engines sector, a segment that has experienced varied performance across different market cycles.
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Summary of Key Considerations
Shakti Pumps (India) has experienced a notable decline in its share price, culminating in a 52-week low of Rs.687. The stock’s performance over the last year contrasts with broader market indices, which have generally shown positive returns. While the company maintains strong long-term growth rates and a solid return on capital employed, recent quarterly profitability and cash flow figures have shown signs of pressure.
Valuation metrics indicate that the stock is trading at a premium relative to its historical sector averages, which may reflect market expectations that have yet to be realised in recent earnings performance. The company’s ability to service debt remains sound, supported by a low leverage ratio.
Overall, the current price level reflects a combination of market dynamics, sectoral factors, and company-specific financial developments that have influenced investor sentiment and trading activity.
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