Shakti Pumps (SHAKTIPUMP)

FairStock Score: 53/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At first glance, Shakti Pumps looks like a high-return franchise: ROE of 37.44% and ROCE of 55.31% are impressive, and debt-to-equity of 0.38 shows management hasn't borrowed recklessly. Promoters own half the company. But I've learned that extraordinary returns mean little if they're collapsing. Sales fell 15.07% and profits plunged 69.53%. A business that earned roughly ₹330 crore over the trailing year now reports a quarterly net profit of just ₹32 crore. The Piotroski F-Score of 3/9 screams deteriorating fundamentals. The market cap is ₹6,360 crore, yet book value is only ₹69.40 per share, so you're paying 8 times book for a business in decline. At ₹554.95, the P/E of 19.30 may look tolerable, but with earnings falling at this speed, today's P/E will look far worse tomorrow. Graham would ask: where is the margin of safety? The 52-week range of ₹456.35 to ₹915.00 shows the market has already repriced the stock sharply, but FairStock Score of 27/100 supports the risk. This is a cyclical business enjoying strong tailwinds earlier, now entering a downcycle. I don't buy turnarounds based solely on hope; I need evidence that orders, margins, and cash flows are stabilising. The dividend yield of 0.19% means shareholders aren't being paid to wait. Shakti Pumps may be a fine company, but at 8 times book with collapsing profits and a 3/9 F-Score, the price offers no margin of safety. I'd keep it on the watchlist, not in the portfolio.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer