Shakti Pumps (India) Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Shakti Pumps (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends paid are not well covered by earnings (0.9x coverage).
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Shakti Pumps (India)'s dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Shakti Pumps (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Shakti Pumps (India) is profitable, therefore cash runway is not a concern.
• Shakti Pumps (India) is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 2.1x debt.
• Shakti Pumps (India)'s cash and other short term assets cover its long term commitments.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• The level of debt compared to net worth has increased over the past 5 years (55.4% vs 61.4% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
• Shakti Pumps (India)'s level of debt (61.4%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Shakti Pumps (India) board of directors is about average.
• The average tenure for the Shakti Pumps (India) management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Dinesh's remuneration is higher than average for companies of similar size in India.
• Dinesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

misc

Pros

Cons

• Shakti Pumps (India) is not covered by any analysts.
• Shakti Pumps (India) has significant price volatility in the past 3 months.

past

Pros

• Shakti Pumps (India)'s year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cons

• Shakti Pumps (India)'s 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Shakti Pumps (India) used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
• Shakti Pumps (India)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Shakti Pumps (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Shakti Pumps (India)'s 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.

value

Pros

• NSEI:SHAKTIPUMP is up 23.3% outperforming the Machinery industry which returned 8.3% over the past month.
• NSEI:SHAKTIPUMP is up 23.3% outperforming the market in India which returned 8% over the past month.

Cons

• Shakti Pumps (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Shakti Pumps (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Shakti Pumps (India) is overvalued based on assets compared to the IN Machinery industry average.
• Shakti Pumps (India) is overvalued based on earnings compared to the IN Machinery industry average.
• Shakti Pumps (India) is overvalued based on earnings compared to the India market.
• SHAKTIPUMP underperformed the Machinery industry which returned -23.7% over the past year.
• SHAKTIPUMP underperformed the Market in India which returned -14.5% over the past year.