Shakti Pumps (India) Limited

Industrials — Specialty Industrial Machinery · NSE

₹423.40+₹4.30 (+1.03%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Shakti Pumps (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shakti Pumps (India) Limited, together with its subsidiaries, manufactures and sells pumping solutions in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees736

Annual revenue₹2,662 Cr

How does it make money?

Turns over ₹2,662 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 736 employees supports ₹3.62 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.62 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 22.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 22.1% and earnings to grow about 29.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.1%

Est. earnings growth+29.4%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +182% while net margin moved +278% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+182%

Margin effect+278%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.16 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

75/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

24.6x

3Y Median

63.0x

40 monthly readings · mean 68.5x · range 13.5x–325.7x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 61% below its 3y median of 63.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 63% below the peer median of 66.2x.

vs. its own history

Cheap

63.0x median over 40 months · -61%

vs. sector peers

Cheap

66.2x median of 4 peers · -63%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.0x

PEG

0.20

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 6.6% to 16.6% over 3 years.
Return on equity is rising
ROE has improved from 5.8% to 15.1%.
Return on capital is rising
ROCE has improved from 10.0% to 22.5%.
High return on capital employed
ROCE of 22.5% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.30x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 572% over 3 years, from ₹75 Cr to ₹505 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 424% against revenue up 182% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 6.6% to 16.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 61% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 63% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 424% against revenue up 182%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 31% a year✓ 41.3% CAGR
Latest reported year was 37.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹56 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹5,225 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.06x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹17.19

Profitable

Profitable on a per-share basis

ROE

15.1%

Strong

Strong capital efficiency

ROCE

22.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

37.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-48.1%

Falling

Profits are shrinking

Dividend Yield

0.24%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹56 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

13.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.8%

Average

Average margins

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

2.12

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.16

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

447.4 / 473.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹943 Cr	₹1,343 Cr	₹2,479 Cr	₹2,662 Cr	+41.3%
EBITDA	₹62 Cr	₹223 Cr	₹614 Cr	₹441 Cr	+92.2%
EBITDA Margin	6.6%	16.6%	24.8%	16.6%	—
PAT (Net Profit)	₹24 Cr	₹142 Cr	₹408 Cr	₹258 Cr	+120.2%
EPS	₹2.19	₹12.82	₹33.97	₹21	+112.5%
ROE	5.8%	18.8%	35.2%	15.1%	—
ROCE	10.0%	26.6%	47.8%	22.5%	—
Total Debt	₹75 Cr	₹85 Cr	₹170 Cr	₹505 Cr	+88.7%
Free Cash Flow	₹14 Cr	-₹11 Cr	-₹88 Cr	-₹56 Cr	—

🟢 Revenue has grown at 41.3% a year over 3 years.

🟢 EBITDA has grown at 92.2% a year over 3 years.

🟢 EBITDA Margin has risen from 6.6% to 16.6% over 3 years (+10.0 pts).

🟢 PAT (Net Profit) has grown at 120.2% a year over 3 years.

🟢 EPS has grown at 112.5% a year over 3 years.

🟢 ROE has risen from 5.8% to 15.1% over 3 years (+9.3 pts).

🟢 ROCE has risen from 10.0% to 22.5% over 3 years (+12.5 pts).

🔴 Total Debt has grown at 88.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹14 Cr to -₹56 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,048 Cr

Total Liabilities

₹1,342 Cr

Cash & Equivalents

₹439 Cr

Operating Cash Flow

₹124 Cr

Capex

-₹180 Cr

Shareholding (proxy)

Institutional Holding

5.2%

Insider Holding

54.0%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

29 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹640

+51.2% vs CMP

Target Range

₹640 – ₹640

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

4 mixed2 general

Shakti Pumps (India) Ltd. Consecutive 52-Week Low Review

Univest, 13 Oct

Shakti Pumps Invests ₹10 Crore in Solar Subsidiary; Shares Fall 0.34%

HDFC Sky, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Shakti Pumps shares jump 8% post solar pump supply order from MSEDC

TradingView, 05 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Shakti Pumps India share price jumps 5% after receipt of order worth over ₹350 crore

Livemint, 06 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Shakti Pumps Reports 37.9% Revenue Growth To ₹859 Crore In Q1 FY27

Sahi, 01 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Shakti Pumps Has Fallen 42% in a Year and 60% From Its Peak — Can the Next Growth Cycle Put the Stock Back on Track

Dalal Street Investment Journal, 17 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑