Shakti Pumps (SHAKTIPUMP)
CyclicalFairStock Score: 53/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹500.3 |
| Market Cap | ₹6,173.6 Cr |
| P/E Ratio | 29.24 |
| ROCE | 55.31% |
| ROE | 37.44% |
| Dividend Yield | 0.2% |
| Profit Growth | -54.46% |
| Debt/Equity | 0.3 |
| Sales Growth | 35.76% |
| Promoter Holding | 50.34% |
| 52-Week Range | ₹456.35 — ₹915 |
| Sector | Industrial Products |
| Book Value | ₹138.22 |
Strengths
- High historical return ratios: ROE of 37.44% and ROCE of 55.31%.
- Conservative balance sheet with debt/equity of only 0.38.
- Promoter holding of 50.34% aligns promoter interests with minority shareholders.
- Latest quarter still generated ₹551 Cr of sales, indicating meaningful scale.
Concerns
- Sales growth of -15.07% and profit growth of -69.53% show severe earnings deterioration.
- Piotroski F-Score of 3/9 points to weak and deteriorating financial health.
- P/B of 8.00 and P/E of 19.30 offer no margin of safety with profits collapsing.
- Dividend yield of just 0.19% gives shareholders almost no compensation while waiting.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer