ScoreWhy is Shanthi Gears Ltd. ?
1
Negative results in Sep 25
- PBT LESS OI(Q) At Rs 22.74 cr has Fallen at -22.1% (vs previous 4Q average)
- INVENTORY TURNOVER RATIO(HY) Lowest at 0.72 times
- PAT(Q) At Rs 21.51 cr has Fallen at -11.4% (vs previous 4Q average)
2
With ROE of 21.5, it has a Very Expensive valuation with a 8.4 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -11.38%, its profits have risen by 2.8% ; the PEG ratio of the company is 13.8
3
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
4
Below par performance in long term as well as near term
- Along with generating -11.38% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shanthi Gears
-11.64%
-0.29
39.55%
Sensex
4.81%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
26.48%
EBIT Growth (5y)
85.51%
EBIT to Interest (avg)
79.98
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.40
Sales to Capital Employed (avg)
1.36
Tax Ratio
26.32%
Dividend Payout Ratio
39.94%
Pledged Shares
0
Institutional Holding
3.50%
ROCE (avg)
32.05%
ROE (avg)
20.28%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
39
Industry P/E
39
Price to Book Value
8.36
EV to EBIT
31.66
EV to EBITDA
27.95
EV to Capital Employed
13.25
EV to Sales
5.95
PEG Ratio
13.82
Dividend Yield
1.13%
ROCE (Latest)
41.85%
ROE (Latest)
21.53%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CF(Y)
Highest at Rs 90.79 Cr
DPS(Y)
Highest at Rs 5.00
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 917.20 cr
-15What is not working for the Company
PBT LESS OI(Q)
At Rs 22.74 cr has Fallen at -22.1% (vs previous 4Q average
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.72 times
PAT(Q)
At Rs 21.51 cr has Fallen at -11.4% (vs previous 4Q average
DPR(Y)
Lowest at 39.94%
NET SALES(Q)
Lowest at Rs 131.91 cr
PBDIT(Q)
Lowest at Rs 26.52 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 20.10%
EPS(Q)
Lowest at Rs 2.80
Loading Valuation Snapshot...
Here's what is working for Shanthi Gears
Operating Cash Flow - Annually
Highest at Rs 90.79 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 917.20 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per Share (DPS) - Annually
Highest at Rs 5.00
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Here's what is not working for Shanthi Gears
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 22.74 cr has Fallen at -22.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 29.18 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
At Rs 131.91 cr has Fallen at -12.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 150.17 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 21.51 cr has Fallen at -11.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 24.27 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Lowest at 0.72 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Sales - Quarterly
Lowest at Rs 131.91 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 26.52 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 20.10%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 22.74 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 2.80
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Lowest at 39.94%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Non Operating Income - Quarterly
Highest at Rs 5.94 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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