Shanthi Gears Limited

NSE: SHANTIGEAR · Industrial Products

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52W Range₹384 – ₹743

Snapshot

Unlock Shanthi Gears Limited's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Shanthi Gears Limited is a manufacturer of diverse gear products, including helical, bevel, and worm gearboxes, as well as specialised castings. The company serves a wide array of industrial sectors such as steel, cement, power, and aerospace, providing both original equipment and refurbishment services.

Business Model

The company generates revenue through the design, manufacturing, and sale of industrial gearboxes and precision gears, complemented by installation and maintenance services. As a subsidiary of Tube Investments of India Limited, it leverages established manufacturing capabilities to serve both domestic and international markets.

Growth Outlook

Growth is driven by the company's ability to provide custom engineering solutions across critical infrastructure sectors like power, mining, and material handling. Continued focus on refurbishment and on-site services provides a recurring revenue stream alongside new equipment sales.

Key Risks

  • Cyclical Industrial Demand. The company's performance is highly sensitive to capital expenditure cycles in core sectors like steel, cement, and power.
  • Raw Material Price Volatility. Fluctuations in the costs of iron, copper, and other metal alloys can significantly impact manufacturing margins.
  • Competitive Pressure. The industrial gear market faces intense competition from both domestic players and global manufacturers with advanced technological capabilities.

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Key Metrics

REVENUE

₹499 Cr

TTM · standalone

-16.9%YoY

NET PROFIT

₹64 Cr

TTM · standalone

-34.2%YoY

EPS

₹8.32

TTM · standalone

-34.3%YoY

RETURN ON EQUITY

15.1%

TTM · standalone

-9.0 ppYoY

RETURN ON CAPITAL EMPLOYED

20.3%

TTM · standalone

-12.3 ppYoY

P/E

56.6×

Q1 FY27 · standalone

56.6 vs 55.4x5Y avg

EV/EBITDA

33.3x

Q1 FY27 · standalone

33.3 vs 38.9x5Y avg

EBITDA MARGIN

21.7%

TTM · standalone

-2.5 ppYoY

NET PROFIT MARGIN

8.5%

Q1 FY27 · standalone

-8.3 ppYoY

DEBT TO EQUITY

0.0x

Q1 FY27 · standalone

+0.00xYoY

Peers · Industrial Products

CompanyMkt CapP/E (TTM)EV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Shanthi Gears LimitedSHANTIGEAR
₹3,613 Cr56.6×33.26-16.9%21.7%15.1%20.3%-4.0%
DEE Development Engineers LimitedDEEDEV
₹3,940 Cr45.2×20.8440.0%18.1%9.5%16.6%+103.1%
WPIL LimitedWPIL
₹3,664 Cr———17.0%——-16.8%
John Cockerill India LimitedCOCKERILL
₹3,373 Cr286.6×84.8778.6%7.2%5.7%8.3%+31.0%
AimtronAIMTRON
₹3,357 Cr———21.0%——+100.8%
Hirect LimitedHIRECT
₹3,302 Cr45.6×44.85—7.6%17.5%27.8%-49.8%

As of Q1 FY27

Financials