Shalimar Paints' Operating Cash Flow Remains Strong, But Rising Interest Costs and Debt-Equity Ratio Raise Concerns

Despite the flat financial performance in the second quarter of FY24-25, Shalimar Paints has been able to maintain a strong operating cash flow of Rs 17.68 crore annually. This is a positive sign for the company as it indicates that it is generating higher cash revenues from its business operations.

However, the company's interest costs have been on the rise, with a 52.43% increase in the last quarter. This could be a cause for concern as it signifies increased borrowings by the company. The debt-equity ratio has also reached its highest level in the last five half-yearly periods, indicating that the company may be relying more on borrowing to fund its operations.

MarketsMOJO has given a 'Strong Sell' call for Shalimar Paints based on its financial performance in the second quarter of FY24-25. The company's score has fallen from -2 to -5 in the last three months, indicating a decline in its overall financial health.

Investors should keep a close eye on Shalimar Paints' financial performance in the coming quarters to see if the company is able to improve its score and address the concerns raised by MarketsMOJO.