Shanthi Gears Limited (IN:SHANTIGEAR)
:SHANTIGEAR
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Shanthi Gears Limited
(SHANTIGEAR)
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Rating:65Neutral
Price Target:
₹496.00
▲(6.27% Upside)
Action:Reiterated
Date:05/09/26
The score is primarily supported by strong financial quality—especially the debt-free balance sheet and historically solid profitability—but is held back by FY2026 slowdown and weaker, more volatile free cash flow. Technicals are mixed with the stock below key moving averages, and the high P/E with only a modest dividend yield further constrains the overall rating.
Positive Factors
High Profitability Margins
Sustained high gross and operating margins indicate structural pricing power and efficient manufacturing. This durable profitability supports reinvestment, funds capex and R&D, and provides a buffer in cyclic downturns, enhancing long-term competitiveness and cash generation.
Negative Factors
Recent Revenue Decline
A meaningful revenue drop in 2025 signals weakening demand or lost share, which can persist absent corrective strategy. For an industrial manufacturer, prolonged top-line contraction impairs fixed-cost absorption, slows organic growth and limits ability to scale margins sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability Margins
Sustained high gross and operating margins indicate structural pricing power and efficient manufacturing. This durable profitability supports reinvestment, funds capex and R&D, and provides a buffer in cyclic downturns, enhancing long-term competitiveness and cash generation.
Read all positive factors
Shanthi Gears Limited (SHANTIGEAR) vs. iShares MSCI India ETF (INDA)
Market Cap
₹33.91B
Dividend Yield1.06%
Average Volume (3M)2.73K
Price to Earnings (P/E)43.2
Beta (1Y)0.98
Revenue Growth-14.21%
EPS Growth-20.18%
CountryIN
Employees490
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)12.12
Shares Outstanding76,715,860
10 Day Avg. Volume1,316
30 Day Avg. Volume2,726
Financial Highlights & Ratios
PEG Ratio-2.14
Price to Book (P/B)7.52
Price to Sales (P/S)6.38
P/FCF Ratio130.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Shanthi Gears Limited Business Overview & Revenue Model
Company Description
Shanthi Gears Limited designs, manufactures, supplies, and services gears and gear boxes in India, the United States, Europe, and internationally. The company provides helical and bevel helical, worm, extruder, and cooling tower gear boxes, as wel...
How the Company Makes Money
Shanthi Gears primarily makes money by manufacturing and selling gears, gearboxes, and gear-related power transmission solutions to customers across industrial and mobility/automotive end markets. Key revenue streams include (1) standard product s...
Shanthi Gears Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.78B | 5.19B | 6.05B | 5.36B | 4.46B | 3.30B |
| Gross Profit | 2.60B | 1.79B | 3.20B | 1.24B | 2.31B | 1.51B |
| EBITDA | 1.32B | 1.04B | 1.29B | 1.07B | 908.10M | 692.20M |
| Net Income | 929.40M | 766.60M | 960.30M | 822.50M | 670.50M | 424.70M |
Balance Sheet | ||||||
| Total Assets | 5.26B | 5.56B | 5.04B | 4.43B | 3.78B | 3.41B |
| Cash, Cash Equivalents and Short-Term Investments | 1.72B | 1.41B | 1.54B | 1.07B | 1.26B | 944.20M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 943.00M | 1.16B | 1.01B | 974.90M | 747.90M | 808.00M |
| Stockholders Equity | 4.32B | 4.40B | 4.03B | 3.45B | 3.02B | 2.60B |
Cash Flow | ||||||
| Free Cash Flow | 315.10M | 253.70M | 664.40M | 162.50M | 476.80M | 293.50M |
| Operating Cash Flow | 508.60M | 783.50M | 907.90M | 362.50M | 629.50M | 350.10M |
| Investing Cash Flow | -325.80M | -535.50M | -380.00M | -123.00M | -261.70M | -164.80M |
| Financing Cash Flow | -153.40M | -384.70M | -384.40M | -383.90M | -230.10M | -191.80M |
Shanthi Gears Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹20.84B | 13.67 | ― | 0.63% | 3.05% | -4.66% | |
70 Outperform | ₹18.34B | 53.19 | ― | 0.30% | 11.80% | 2.82% | |
65 Neutral | ₹33.91B | 43.17 | ― | 1.06% | -14.21% | -20.18% | |
65 Neutral | ₹246.98B | 33.62 | ― | 0.50% | 21.42% | 17.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ₹20.55B | 20.56 | ― | ― | 14.55% | 18.72% | |
58 Neutral | ₹37.38B | 26.22 | ― | 1.06% | 17.76% | 83.26% |
* Industrials Sector Average
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Shanthi Gears Limited Corporate Events
Shanthi Gears Clears FY26 Results, Sets Dividend and Board Changes
May 5, 2026
Shanthi Gears’ board has approved the audited financial results for the year ended 31 March 2026, with the statutory auditors issuing an unmodified opinion, underscoring the company’s financial reporting quality and regulatory complian...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.