Shakti Pumps (India) Ltd (SHAKTIPUMP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kirl.Pneumatic

Elgi Equipments

GK Energy

Ingersoll-Rand

Swaraj Engines

KSB

Oswal Pumps

Greaves Cotton

Kirl. Brothers

Shakti Pumps

Powerica Ltd

Why is Shakti Pumps (India) Ltd ?

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(Latest six months) At Rs 36.01 cr has Grown at 56.16%
PBT LESS OI(Q) At Rs 56.51 cr has Fallen at -61.24%
PAT(Q) At Rs 38.33 cr has Fallen at -65.2%

With ROCE of 31.2, it has a Expensive valuation with a 3.8 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -36.82%, its profits have fallen by -36.9%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -1.84% over the previous quarter and collectively hold 9.8% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 5.38% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -36.82% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shakti Pumps for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shakti Pumps

-36.82%

-0.79

46.69%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.75%

EBIT Growth (5y)

26.03%

EBIT to Interest (avg)

7.75

Debt to EBITDA (avg)

0.91

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.93

Tax Ratio

28.28%

Dividend Payout Ratio

2.94%

Pledged Shares

Institutional Holding

9.80%

ROCE (avg)

27.98%

ROE (avg)

20.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.17

EV to EBIT

17.80

EV to EBITDA

16.61

EV to Capital Employed

3.80

EV to Sales

2.60

PEG Ratio

Dividend Yield

0.18%

ROCE (Latest)

31.16%

ROE (Latest)

24.70%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 684.01 cr

NET SALES(Q)

Highest at Rs 857.77 cr

-20What is not working for the Company

INTEREST(Latest six months)

At Rs 36.01 cr has Grown at 56.16%

PBT LESS OI(Q)

At Rs 56.51 cr has Fallen at -61.24%

PAT(Q)

At Rs 38.33 cr has Fallen at -65.2%

ROCE(HY)

Lowest at 19.07%

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Here's what is working for Shakti Pumps

Net Sales - Quarterly

Highest at Rs 857.77 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 857.77 cr has Grown at 28.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 684.01 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Shakti Pumps

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 56.51 cr has Fallen at -61.24%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 38.33 cr has Fallen at -65.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Latest six months

At Rs 36.01 cr has Grown at 56.16%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

Highest at Rs 9.70 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income