Shanthi Gears Ltd. (SHANTIGEAR) 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

JNK

HLE Glascoat

WPIL

Marine Electric.

GMM Pfaudler

Jash Engineering

Pitti Engg.

Windsor Machines

Shanthi Gears

Concord Control

Aimtron

Why is Shanthi Gears Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.17% and Operating profit at 16.23% over the last 5 years

With a fall in Net Sales of -14.52%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 4 consecutive quarters
PAT(Q) At Rs 9.85 cr has Fallen at -50.9% (vs previous 4Q average)
ROCE(HY) Lowest at 24.42%
OPERATING PROFIT TO NET SALES(Q) Lowest at 13.14%

With ROE of 15.3, it has a Very Expensive valuation with a 7 Price to Book Value

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 -25.63%, its profits have fallen by -30.6%

Despite the size of the company, domestic mutual funds hold only 0.03% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.63% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Industrial Manufacturing)

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

Is Shanthi Gears for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanthi Gears

-25.63%

-0.98

26.16%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.17%

EBIT Growth (5y)

16.23%

EBIT to Interest (avg)

84.24

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

1.39

Tax Ratio

26.01%

Dividend Payout Ratio

39.94%

Pledged Shares

Institutional Holding

3.36%

ROCE (avg)

33.88%

ROE (avg)

20.88%

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

7.04

EV to EBIT

41.60

EV to EBITDA

33.40

EV to Capital Employed

9.88

EV to Sales

5.93

PEG Ratio

Dividend Yield

1.32%

ROCE (Latest)

29.33%

ROE (Latest)

15.31%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

PAT(Q)

At Rs 9.85 cr has Fallen at -50.9% (vs previous 4Q average

ROCE(HY)

Lowest at 24.42%

OPERATING PROFIT TO NET SALES(Q)

Lowest at 13.14%

NET SALES(Q)

Lowest at Rs 115.49 cr

PBDIT(Q)

Lowest at Rs 15.18 cr.

PBT LESS OI(Q)

Lowest at Rs 10.01 cr.

EPS(Q)

Lowest at Rs 1.28

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Here's what is not working for Shanthi Gears

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 10.01 cr has Fallen at -54.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 21.96 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 9.85 cr has Fallen at -50.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 20.06 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 115.49 cr has Fallen at -10.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 129.68 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 13.14% and Fallen

each quarter in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Net Sales - Quarterly

Lowest at Rs 115.49 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 15.18 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 10.01 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1.28

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)