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Check Before You Invest : Shanthi Gears Ltd

BSE: 522034 NSE: SHANTIGEAR ISIN: INE631A01022
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Shanthi Gears Ltd belong to?
Shanthi Gears Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Shanthi Gears Ltd a good quality company?
Shanthi Gears Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Shanthi Gears Ltd undervalued or overvalued?
Shanthi Gears Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Shanthi Gears Ltd a good buy now?
Shanthi Gears Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Shanthi Gears Ltd?
Shanthi Gears Ltd revenue growth is 12.8% for FY-2025 , which is below its 5 year CAGR of 20.1% , indicating slower growth.
Q.2 Gross Profit margin of Shanthi Gears Ltd?
Shanthi Gears Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.7% for FY-2025 , which is above its 5 year median of 22.7% , indicating increasing margins.
Q.3 Operating Profit Margin of Shanthi Gears Ltd?
Shanthi Gears Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.36% for FY-2025 , which is above its 5 year median of 19.13% indicating increasing margins.
Q.4 Net Profit Margin of Shanthi Gears Ltd?
Shanthi Gears Ltd Net Profit Margin is 15.88% for FY-2025 , is above with its 5 year median of 15.05%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 23.7 22.7
Operating Profit Margin 21.36 19.13
Net Profit Margin 15.88 15.05
Q.5 Return on Asset of Shanthi Gears Ltd?
Shanthi Gears Ltd Return on Asset is 20.51%, which is above its 5 year historical median of 17.88%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Shanthi Gears Ltd?
Shanthi Gears Ltd Return on equity is 25.67% for FY-2025 , which is above its historical median of 23.85%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Shanthi Gears Ltd?
Shanthi Gears Ltd Return on capital employed is 34.89% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Shanthi Gears Ltd?
Shanthi Gears Ltd Cash conversion cycle is 82 days, above its historical median of 76 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.29 1.19
ROE 25.67 23.85
ROCE 34.89 32.21
Cash Conversion Cycle 82 days 76 days
Q.9 Debt to Equity ratio of Shanthi Gears Ltd?
Shanthi Gears Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.4 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Shanthi Gears Ltd?
Shanthi Gears Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shanthi Gears Ltd?
Promoters hold 70.47% of the Shanthi Gears Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shanthi Gears Ltd vs industry peers?
Shanthi Gears Ltd revenue CAGR is 20.07% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 604.6 492.3
Gross Profit 143.4 44.4
Operating Profit 129 47
Net Profit 96 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.29 1.23
ROE 25.67 11.57
ROCE 34.89 13.36
Cash Conversion Cycle (days) 81.92 47

Valuation & price assessment

Q.1 Stock return of Shanthi Gears Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 18% 28.6% 10.4% -2%
Q.3 Valuation ratios of Shanthi Gears Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 44.43 0.00 39.31
Price to Book 8.22 3.62 2.88
Price to Sales 6.86 4.16 1.29
EV to EBITDA 27.87 33.88 11.85

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