An even first half sprang into life when Martin Davies sprung the offside trap only to be denied by Dynamo keeper James Martyn. But Davies was quick to resurrect any poor finishing with a well taken penalty after Dorryl Proffitt was dragged down in the area.
Proffitt himself got on the score sheet, keeping his composure to slot past Martyn on the stroke of half time.
Town started badly after the break and were punished from the spot by Kieron Davies after a handball in the box.
But any comeback was quashed when Grant Goodhead nodded in from close range after an excellent corner from Nicky Porter
to restore the two goal advantage, before Proffitt scored his second a minute later, condemning Shepshed to the bottom of the table.
Town had further chances to increase their tally but squandered numerous opportunities.
Town next match is on Tuesday evening away at Loughborough in a rearranged fixture.