Valuation Metrics and Financial Health
At a PE ratio of 19.0, Shakti Pumps trades at a moderate multiple relative to its earnings, especially when compared to industry heavyweights. Its price-to-book value stands at 4.69, reflecting a premium over book value but not excessively so for a company with strong profitability. The enterprise value to EBIT and EBITDA ratios, at 13.66 and 13.14 respectively, further suggest a balanced valuation, neither stretched nor deeply discounted.
Crucially, the company boasts a return on capital employed (ROCE) of 31.16% and a return on equity (ROE) of 24.70%, both indicative of efficient capital utilisation and strong profitability. These figures underscore Shakti Pumps’ ability to generate substantial returns relative to its capital ba...
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