Shanthi Gears Limited (SHANTIGEAR) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Shanthi Gears Limited ₹119, price ₹574, upside -79.2%, quality 54 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 1, 2026.
How to read this chart
60‑month range ₹82.74 – ₹725.45 · fair‑value band ₹70.16 – ₹192.03 · the ₹573.65 price screens above the ₹119.18 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 1, 2026.
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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 well as geared motors.
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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 well as geared motors. It also offers gears and pinions; special gearboxes; and iron, iron castings, phosphor bronze, aluminum bronze, leaded bronze, and copper alloy castings. In addition, the company provides installation support, refurbishment, and on-site services. Its products are used in steel, cement, sugar, crane and material handling, power, paper, rubber and plastics, off-highway and mining, process, compressor, railway, textile, and aerospace applications. The company was founded in 1960 and is based in Coimbatore, India. Shanthi Gears Limited operates as a subsidiary of Tube Investments of India Limited.
Stock analysis
Shanthi Gears Limited (SHANTIGEAR) currently trades at ₹573.65, while our model-based Fair Value estimate is ₹119.18, 79.2% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹171.43 per share, and 0 of the 26 models we run sit above the ₹573.65 price.
Bear case: the Asset-Based group reads lowest at ₹38.43, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹70.16 (bear) to ₹192.03 (bull), the price of ₹573.65 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 54/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Shanthi Gears Limited reported revenue of ₹5.2B in FY2026 versus ₹3.3B in FY2022, a compound +12.0%/yr. Reported net income was ₹767M in FY2026, compounding +15.9%/yr from FY2022.
Key figures
Market cap ₹44.0B (≈ $457M) · P/E ratio 71.7 · P/S ratio 10.6 · EPS (TTM) ₹8.00 · Dividend yield 0.9% · Net margin 14.8% · Return on equity 18.2% · Return on assets (EBIT) 24.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 21% below its 52-week high and 48% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −49% fair-value upside, at −79%, SHANTIGEAR screens richer than that median.
Fair Value models
Bear ₹70.16Fair Value ₹119.18Bull ₹192.03
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹1.52 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.80/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−14.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.2%
Start year 2021 (pandemic). Over 10 years: +12.3% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.4%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+25.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.0%
Dividend (yield on the price)0.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.25.0% vs 16.2%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 17%
Start year 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+61.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +54.9% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 792 stocks
Beats the industry median on 4/13 measures
Overall it trails its industry peers.
Valuation
Quality Score54 · Below median
Fair Value upside−79.2% · Bottom 25%
Profitability
Return on equity (TTM)18.2% · Top 25%
Return on assets10.4% · Top 25%
Net margin (TTM)12.8% · Top 25%
Operating margin (TTM)8.8% · Above median
Growth and dividend
Revenue growth−14.4% · Bottom 25%
Dividend yield (TTM)0.9% · Below median
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (TTM)71.7× · Priciest 25%
P/B10.00× · Priciest 25%
P/S (TTM)8.82× · Priciest 25%
P/FCF173.5× · Priciest 25%
EV/EBITDA49.5× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)0· sector 29
PAST (return on equity)73· sector 28
HEALTH (low debt)0· sector 96
DIVIDEND (yield)17· sector 27
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Shanthi Gears Limited (SHANTIGEAR) overvalued or undervalued?
As of Oct 1, 2026, our model estimates a fair value of ₹119.18 versus a price of ₹573.65, about −79% upside (overvalued).
What is the fair value of SHANTIGEAR?
Our model-based fair value for Shanthi Gears Limited is ₹119.18 (as of Oct 1, 2026), built from audited fundamentals. The current price: ₹573.65.
What is the quality score of SHANTIGEAR?
Shanthi Gears Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Shanthi Gears Limited (SHANTIGEAR)?
Our model-based price target is the fair value of ₹119.18 (as of Oct 1, 2026) from 26 valuation models. Cautious scenario ₹70.16, optimistic scenario ₹192.03. It is a calculation from audited fundamentals, not an analyst target.
What is the Shanthi Gears Limited stock forecast for 2026?
Our models put fair value at ₹119.18, about −79% upside versus a price of ₹573.65 (overvalued). Cautious scenario ₹70.16, optimistic scenario ₹192.03. The calculation is refreshed regularly with new filings.
What is the revenue of Shanthi Gears Limited (SHANTIGEAR)?
Shanthi Gears Limited reported trailing-twelve-month revenue of about ₹5.0B (latest available figure, as of Oct 1, 2026).
Does Shanthi Gears Limited pay a dividend?
Shanthi Gears Limited currently shows a dividend yield of about 0.87% relative to its recent price (as of Oct 1, 2026).
What growth is priced into Shanthi Gears Limited (SHANTIGEAR)?
For today's price to be fair in a discounted-cash-flow model, Shanthi Gears Limited would have to grow free cash flow by +61.3 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +19.2 % per year. As of Oct 1, 2026.
What discount rate (WACC) does the fair value of SHANTIGEAR use?
Our models discount Shanthi Gears Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.03, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Shanthi Gears Limited that is +61.3 % per year a year over ten years, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has Shanthi Gears Limited (SHANTIGEAR) delivered so far?
Over the past 5 years revenue at Shanthi Gears Limited grew +19.2 % a year. The price currently implies +61.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Shanthi Gears Limited (SHANTIGEAR) growing?
The median revenue growth in the sector is +6.5 % a year. That is the yardstick for the growth priced into Shanthi Gears Limited (+61.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Shanthi Gears Limited (SHANTIGEAR)?
The free-cash-flow yield on the price is 0.58 %: that much free cash flow Shanthi Gears Limited produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Shanthi Gears Limited (SHANTIGEAR)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Shanthi Gears Limited it is ₹119.18 per share (as of Oct 1, 2026), against a price of ₹573.65. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Shanthi Gears Limited stock overvalued or undervalued in 2026?
As of Oct 1, 2026, SHANTIGEAR trades above its calculated fair value: price ₹573.65, fair value ₹119.18, a gap of about −79% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SHANTIGEAR?
No. The price is what the market pays today (₹573.65); the fair value is what the company's own numbers justify (₹119.18). For Shanthi Gears Limited the two are ₹454.47 per share apart. That gap is exactly why we show both numbers side by side.
How much is Shanthi Gears Limited worth?
The market values Shanthi Gears Limited at about ₹44.0B (market capitalisation, as of Oct 1, 2026). Per share that is ₹573.65; our models calculate a fair value of ₹119.18 per share.
What do the bullish and bearish scenarios say about SHANTIGEAR?
Our models span a range for Shanthi Gears Limited: cautious scenario ₹70.16, base ₹119.18, optimistic ₹192.03 per share (as of Oct 1, 2026, price ₹573.65). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SHANTIGEAR?
Shanthi Gears Limited trades at a price-to-earnings ratio of 71.7 (as of Oct 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹119.18 is built from several models across several years. Other multiples: P/B 10.0, P/S 8.8, EV/EBITDA 49.5.
How solid is the balance sheet of Shanthi Gears Limited (SHANTIGEAR)?
Balance-sheet figures for Shanthi Gears Limited (as of Oct 1, 2026): return on equity 18.2%. They feed the Quality Score of 54/100, which measures business quality independently of the share price.
How far is SHANTIGEAR from its 52-week high?
Shanthi Gears Limited trades at ₹573.65, about 21% below its 52-week high of ₹725.45 and 48% above the low of ₹386.65 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹119.18 is for.
Which stocks are comparable to Shanthi Gears Limited?
From the same area (Industrials) we also value GE Vernova Inc, SIE, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Shanthi Gears Limited stock attractive at the current price?
The data as of Oct 1, 2026: price ₹573.65, calculated fair value ₹119.18 (−79%), Quality Score 54/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SHANTIGEAR calculated?
We run Shanthi Gears Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹119.18, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Shanthi Gears Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Shanthi Gears Limited (SHANTIGEAR)?
The closing price on Oct 1, 2026 was ₹573.65. Our model-based fair value is ₹119.18, about −79% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Shanthi Gears Limited right now?
The price sits above even our optimistic bull case (₹192.03). The favourable scenario is already priced in. The model range is unusually wide (₹70.16 to ₹192.03). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Shanthi Gears Limited (SHANTIGEAR) come from?
Earnings per share at Shanthi Gears Limited grew +20.7 % a year from 2015 to 2026. Broken into its drivers: revenue per share +15.2 %, EBIT margin +8.3 %, tax rate −0.4 %, residual (interest, one-offs) −2.9 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Shanthi Gears Limited
How large is the market capitalisation of Shanthi Gears Limited (SHANTIGEAR)?
The market capitalisation of Shanthi Gears Limited is ₹44.0B (≈ $457M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Shanthi Gears Limited (SHANTIGEAR)?
The price-to-sales ratio of Shanthi Gears Limited is 10.6 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Shanthi Gears Limited (SHANTIGEAR)?
Earnings per share at Shanthi Gears Limited are ₹8.00 (price ÷ EPS = P/E 71.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Shanthi Gears Limited (SHANTIGEAR)?
The dividend yield of Shanthi Gears Limited is 0.9% (payout 62.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Shanthi Gears Limited (SHANTIGEAR)?
The net margin of Shanthi Gears Limited is 14.8% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Shanthi Gears Limited (SHANTIGEAR)?
The return on equity (ROE) of Shanthi Gears Limited is 18.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Shanthi Gears Limited (SHANTIGEAR)?
On an EBIT basis the return on assets of Shanthi Gears Limited is 24.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Shanthi Gears Limited (SHANTIGEAR)?
The operating margin of Shanthi Gears Limited is 8.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Shanthi Gears Limited (SHANTIGEAR)?
Revenue at Shanthi Gears Limited is growing −14.4% versus a year earlier (3y avg +5.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Shanthi Gears Limited (SHANTIGEAR)?
Earnings per share at Shanthi Gears Limited are growing −56.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Shanthi Gears Limited (SHANTIGEAR) hold?
Shanthi Gears Limited holds more cash than debt, ₹752M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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