Shanthi Gears Limited (IN:SHANTIGEAR)
:SHANTIGEAR
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Shanthi Gears Limited
(SHANTIGEAR)
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Rating:66Neutral
Price Target:
₹511.00
▲(9.48% Upside)
Action:ReiteratedDate:01/23/26
The score is supported primarily by strong fundamentals—high margins, strong ROE, and a debt-free balance sheet—tempered by a recent revenue decline and historically uneven cash-flow conversion. Technical signals are mixed (negative MACD and below longer-term moving averages), and valuation is a meaningful headwind due to the high P/E with only a modest dividend yield.
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
₹35.35B
Dividend Yield1.06%
Average Volume (3M)2.73K
Price to Earnings (P/E)55.7
Beta (1Y)1.01
Revenue GrowthN/A
EPS GrowthN/A
CountryIN
Employees490
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.11
Shares Outstanding76,715,860
10 Day Avg. Volume1,316
30 Day Avg. Volume2,726
Financial Highlights & Ratios
PEG Ratio2.25
Price to Book (P/B)9.00
Price to Sales (P/S)6.00
P/FCF Ratio54.59
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 Limited primarily makes money by selling engineered gear products and power transmission solutions to industrial customers. Its key revenue streams include: (1) Sale of gears and gearboxes/gear units—revenues generated from supplying...
Shanthi Gears Limited Financial Statement Overview
Summary
Income Statement
79
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.78B | 6.05B | 5.36B | 4.46B | 3.30B | 2.16B |
| Gross Profit | 2.60B | 3.20B | 1.24B | 2.31B | 1.51B | 1.02B |
| EBITDA | 1.32B | 1.29B | 1.07B | 908.10M | 692.20M | 350.50M |
| Net Income | 929.40M | 960.30M | 822.50M | 670.50M | 424.70M | 201.70M |
Balance Sheet | ||||||
| Total Assets | 5.26B | 5.04B | 4.43B | 3.78B | 3.41B | 3.25B |
| Cash, Cash Equivalents and Short-Term Investments | 1.72B | 1.54B | 1.07B | 1.26B | 944.20M | 746.70M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 943.00M | 1.01B | 974.90M | 747.90M | 808.00M | 882.90M |
| Stockholders Equity | 4.32B | 4.03B | 3.45B | 3.02B | 2.60B | 2.37B |
Cash Flow | ||||||
| Free Cash Flow | 315.10M | 664.40M | 162.50M | 476.80M | 293.50M | 173.70M |
| Operating Cash Flow | 508.60M | 907.90M | 362.50M | 629.50M | 350.10M | 327.70M |
| Investing Cash Flow | -325.80M | -380.00M | -123.00M | -261.70M | -164.80M | -203.50M |
| Financing Cash Flow | -153.40M | -384.40M | -383.90M | -230.10M | -191.80M | -115.10M |
Shanthi Gears Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹29.99B | 27.08 | ― | 0.18% | 26.81% | 1.06% | |
68 Neutral | ₹25.68B | 18.33 | ― | 1.63% | -2.78% | 2.55% | |
66 Neutral | ₹35.35B | 55.74 | ― | 1.06% | ― | ― | |
65 Neutral | ₹25.74B | 51.58 | ― | 0.47% | 25.52% | -4.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ₹36.95B | 48.24 | ― | 0.49% | 4.44% | -25.67% | |
47 Neutral | ₹5.73B | 204.12 | ― | 0.48% | 4.69% | -124.17% |
* Industrials Sector Average
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Shanthi Gears Limited Corporate Events
Shanthi Gears Board Clears Reclassification of Algavista Greentech from Promoter Group
Jan 22, 2026
Shanthi Gears Limited’s board has approved the reclassification of Algavista Greentech Private Limited from the promoter group category, after confirming its eligibility under the SEBI Listing Regulations. Algavista Greentech currently holds...
Shanthi Gears Declares Interim Dividend and Announces CFO Exit After Q3 Results Approval
Jan 22, 2026
Shanthi Gears Limited’s board has approved the unaudited standalone financial results for the quarter and nine months ended 31 December 2025, which have been subjected to a limited review and made available on the company’s website and...
Shanthi Gears Declares Interim Dividend and Announces CFO’s Exit
Jan 22, 2026
Shanthi Gears Limited’s board has approved the unaudited standalone financial results for the quarter and nine months ended 31 December 2025 and has released these results to the stock exchanges and on its website, with extracts to be publis...
Shanthi Gears Files SEBI Dematerialisation Compliance Certificate for December Quarter
Jan 3, 2026
Shanthi Gears Limited has submitted a compliance certificate to the stock exchanges confirming adherence to Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The company’s ...
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.