Shanthi Gears Limited (SHANTIGEAR) AI Stock Analysis

Shanthi Gears Limited

(NSE:SHANTIGEAR)

Select Model

Rating:73Outperform

Price Target:INR 521.00▲(11.40% Upside)

Action:upgraded

Date:08/25/26

Strong financial performance led by a debt-free balance sheet and consistent cash generation is the primary driver, supported by bullish technical momentum from price action above moving averages. High valuation from elevated P/E limits the overall score.

Positive Factors

Debt-free balance sheetA debt-free balance sheet reduces financial risk and interest burden, giving Shanthi Gears greater resilience across industrial cycles. It also preserves flexibility to fund investment, manage weaker demand, and support customers without relying heavily on external financing.

Negative Factors

Recent revenue contractionThe latest revenue contraction interrupts the strong expansion recorded from 2022 through 2025 and indicates weaker near-term demand or project conversion. If sustained, slower sales would reduce operating leverage and make it harder to protect earnings growth over the coming quarters.

Shanthi Gears Limited (SHANTIGEAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 40.71B
Dividend Yield: 0.85%
Average Volume (3M): 25.05K
Price to Earnings (P/E): 62.0
Beta (1Y): 0.61
Revenue Growth: -14.22%
EPS Growth: -37.57%
Country: India
Employees: 479
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Shanthi Gears Limited Business Overview & Revenue Model

Company Description

Shanthi Gears Limited specializes in the engineering, manufacturing, supply, and servicing of diverse gearing solutions and gearboxes. The company boasts a significant international presence, operating across India, the United States, Europe, and oth...

Shanthi Gears Limited Financial Statement Overview

Summary

Strong balance sheet with zero debt and high ROE, solid cash flows, and revenue growth through 2025, despite a dip in 2026.

Income Statement

72Positive

Balance Sheet

92Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.95B	5.19B	6.05B	5.36B	4.46B	3.30B
Gross Profit	1.83B	1.79B	3.20B	1.24B	2.31B	1.51B
EBITDA	781.50M	1.04B	1.29B	1.07B	908.10M	693.50M
Net Income	580.20M	766.60M	960.30M	822.50M	670.50M	424.70M
Balance Sheet
Total Assets	5.64B	5.56B	5.04B	4.43B	3.78B	3.41B
Cash, Cash Equivalents and Short-Term Investments	1.56B	1.41B	1.54B	1.07B	1.26B	944.20M
Total Debt	54.00M	0	0	0	0	0
Total Liabilities	1.15B	1.16B	1.01B	974.90M	747.90M	808.00M
Stockholders Equity	4.50B	4.40B	4.03B	3.45B	3.02B	2.60B
Cash Flow
Free Cash Flow	0	253.70M	664.40M	162.50M	476.80M	293.50M
Operating Cash Flow	0	783.50M	907.90M	362.50M	629.50M	350.10M
Investing Cash Flow	0	-535.50M	-380.00M	-123.00M	-261.70M	-164.80M
Financing Cash Flow	0	-384.70M	-384.40M	-383.90M	-230.10M	-191.80M

Shanthi Gears Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price467.70

Price Trends

50DMA576.74Negative

100DMA502.03Negative

200DMA474.94Negative

Market Momentum

MACD-30.65Positive

RSI31.12Neutral

STOCH29.25Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHANTIGEAR, the sentiment is Negative. The current price of 467.70 is below the 20-day moving average (MA) of 532.17, below the 50-day MA of 576.74, and below the 200-day MA of 474.94, indicating a bearish trend. The MACD of -30.65 indicates Positive momentum. The RSI at 31.12 is Neutral, neither overbought nor oversold. The STOCH value of 29.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHANTIGEAR.

Shanthi Gears Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SHANTIGEAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PIXTRANS	75Outperform	INR 22.20B	16.96	―	0.55%	4.81%	16.32%
IN:SHANTIGEAR	73Outperform	INR 35.88B	62.05	―	0.85%	-14.22%	-37.57%
IN:THEJO	68Neutral	INR 21.79B	38.92	―	0.25%	20.87%	12.63%
IN:PENIND	62Neutral	INR 20.94B	14.63	―	―	9.17%	14.00%
IN:GREAVESCOT	57Neutral	INR 46.45B	46.37	―	1.00%	21.20%	22.83%
IN:KIRLOSENG	56Neutral	INR 261.95B	47.81	―	0.50%	22.66%	15.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:SHANTIGEAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SHANTIGEAR	Shanthi Gears Limited	467.70	-7.21	-1.52%
IN:GREAVESCOT	Greaves Cotton Limited	199.40	-18.71	-8.58%
IN:KIRLOSENG	Kirloskar Oil Engines Limited	1799.50	783.34	77.09%
IN:PENIND	Pennar Industries Limited	154.55	-116.25	-42.93%
IN:PIXTRANS	PIX Transmissions Ltd	1629.10	171.97	11.80%
IN:THEJO	Thejo Engineering Ltd.	2008.90	193.30	10.65%

Shanthi Gears Limited Corporate Events

Shanthi Gears Announces Exit of Head of Strategic Sourcing

Sep 15, 2026

Shanthi Gears Limited is an Indian engineering company focused on designing and manufacturing industrial gears and gearboxes for a range of sectors. The company is listed on the National Stock Exchange of India and BSE, reflecting its presence in the...

Shanthi Gears Denies Undisclosed Factors Behind Surge in Trading Volume

Aug 26, 2026

Shanthi Gears Limited operates in the industrial manufacturing sector, focusing on the production of gears and related power transmission solutions for a range of engineering and industrial applications. The company’s securities are listed on t...

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.

Date of analysis: Aug 25, 2026

Shanthi Gears Limited AI Stock Analysis