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Shanthi Gears Ltd. Stock Analysis

Small Cap
Evaluated by 598 users | BSE: 522034 | NSE: SHANTIGEAR |
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It all started in 1969, when ‘Shanthi Engineering & Trading Co.’ was established. This company started manufacturing small gears by way of simple manufacturing process like milling. In 1972, it was converted to Shanthi Gear Products (P) Limited.   Their guiding principle...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.16%12.02%6.01%7.07%3.36%6.26%7.39%8.85%10.23%9.32%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 162173147156155165184214242242
Y-o-Y Gr. Rt.-6.6%-15.3%6.3%-0.4%6.2%11.6%16.4%12.9%0.3%
Adjusted EPS (Rs.) 3.423.521.822.231.12.122.663.373.873.21
Y-o-Y Gr. Rt.-2.9%-48.3%22.5%-50.7%92.7%25.5%26.7%14.8%-17.1%
Book Value per Share (Rs.) 28.0530.3431.5332.6133.1434.7537.4938.936.9729.81
Adjusted Net Profit 27.928.814.918.2917.321.727.531.624.6
Net Op. Cash Flow (Rs. Cr.) 54.528.349.229.1-6.146.113.842.327.255.8
Debt to Cash Flow from Ops 0.180.1400000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Shanthi Gears Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.6%9.3%9.6%0.3%
Adjusted EPS -0.7%23.9%6.5%-17.1%
Book Value per Share 0.7-2.1-7.4-19.4
Share Price 13.6% 0.9% -8.3% 13.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.6912.075.896.943.336.247.368.8210.29.27
Operating Profit Margin (%) 42.763829.7627.0911.918.6619.4217.2617.0414.33
Net Profit Margin (%) 17.216.6410.1511.675.7710.511.812.8513.0810.16
Debt to Equity 0.040.0200000000
Working Capital Days 150161190240317358374322247208
Cash Conversion Cycle 117139160120137150148146133116
Entity Percentage Holding
Promoters 70.47%
Institutions 7.29%
Non-Institutions 22.24%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Shanthi Gears Ltd.'s performance infers:

Shanthi Gears Ltd. earnings have grown by 23.9%, whereas share price has appreciated 0.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Shanthi Gears Ltd. share prices over the last 10 years. Here is what we found out:

Shanthi Gears Ltd. share price has appreciated 9.4% annually over the past ten years.

It all started in 1969, when ‘Shanthi Engineering & Trading Co.’ was established. This company started manufacturing small gears by way of simple manufacturing process like milling. In 1972, it was converted to Shanthi Gear Products (P) Limited.  

Their guiding principle since then has been always “quality gears”. Slowly but steadily their business expanded. So also the quality, range, Customers and services. Soon, they became the No. 1 (loose) gear

It all started in 1969, when ‘Shanthi Engineering & Trading Co.’ was established. This company started manufacturing small gears by way of simple manufacturing process like milling. In 1972, it was converted to Shanthi Gear Products (P) Limited.  

Their guiding principle since then has been always “quality gears”. Slowly but steadily their business expanded. So also the quality, range, Customers and services. Soon, they became the No. 1 (loose) gear manufacturer in the country both in terms of quality and volume.

Propelled for growth, in 1980, Shanthi Gears decided to go in for the manufacture of Worm Reduction Gear Boxes. Braving competition from leading manufacturers including multinationals, Shanthi Gears’ Worm Reduction Gear Boxes gained quick market acceptance. Today, it is rated way above the competition.  

Simultaneously, production of Helical Gear Boxes also started in single, double, triple, and quadruple reductions and in various combinations. Hollow shaft Gear Boxes were also introduced. Solid shafts and Hollow shaft Bevel Helical Reduction Gear Boxes followed suit.   In 1986, Shanthi Gears became a joint stock Company and it is now being listed in the major Stock Exchanges.

The philosophy of Shanthi Gears  has been -- the quality of the finished product is always the sum total of the quality of the raw materials and the components put in. Consequently, facilities for manufacturing Patterns, Centrifugal Castings of phosphor bronze rings, Ferrous Castings, Aluminum Castings, Heat Treatment, Forgings, Fabrications and Cutter Manufacturing were also set up, in-house.  

Foolproof 'Quality Systems' developed over the years ensures products of superior quality and long lasting performance.

Product range of the company includes:

  • Worm Gear Box
  • Helical & Bevel Helical Gear Box
  • Geared Motor
  • Custom-Built Gear Box
  • Mill Gear Box
  • Open Gearing
  • Products for Textile Industries
  • CNC Machine Tools

Services offered by the company:

The company act as consultants in the field of engineering design, advisors and purveyors of technical know-how and applied technology, solution providers and business process outsourcers in the field of engineering design and drawing, software programming etc.

  • Engineering Design
  • Modeling  & Drafting.
  • Analysis & Simulation.
  • Assembly and Animations.
  • Reverse Engineering.
  • Tooling (Mould & Pattern) Design & Manufacturing.
  • Generation of NC Codes and simulation.
  • Calibration of machine tools.
  • Calibration of Co-ordinate Measuring Machines.
  • Performance Evaluation of machine tools and a wide variety of errors can be quantified.

Different manufacturing plants of the company

  • Shanthi Gears Limited, A - Unit, 304-A, Trichy Road, Singanallur, Coimbatore , Tamilnadu, India.
  • Shanthi Gears Limited, B - Unit, 304-F, Trichy Road, Singanallur, Coimbatore, Tamilnadu, India.
  • Shanthi Gears Limited, C - Unit, Avanashi Road, Muthugoundenputhur, Coimbatore, Tamilnadu, India.
  • Shanthi Gears Limited, D - Unit, K. Krishnapuram, Kamanaickenpalayam, Palladam,  Tamilnadu, India.
  • Shanthi Gears Limited, E - Unit, 1812, Trichy Road, Singanallur,  Coimbatore, Tamilnadu, India.
  • Shanthi Gears Limited, F - Unit, 26, Trichy Road, Kambanthottam, Kannampalayam,  Coimbatore, Tamilnadu, India.

Subsidiaries:

  • Shanti Engineering Solutions
  • Shanti Metrology Services

Awards & Achievements:

It is a 9100B Certified Company

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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