Shalimar Wires Industries Shows Mixed Financial Performance Amid Debt Concerns
Shalimar Wires Industries has recently experienced a change in its evaluation, reflecting a shift in technical indicators. The company reported a strong operating profit to interest ratio and significant profit after tax, despite facing challenges such as a high debt-to-equity ratio and a notable percentage of pledged promoter shares.
Shalimar Wires Industries, operating within the Garments & Apparels sector, has recently undergone an adjustment in evaluation, reflecting changes in its technical indicators. The stock's technical trend has shifted from bearish to mildly bearish, indicating a nuanced perspective on its market position.In terms of key financial metrics, Shalimar Wires has reported a notable operating profit to interest ratio of 2.27 times, marking its highest performance in recent quarters. Additionally, the company achieved a profit after tax of Rs 1.48 crore and a PBDIT of Rs 7.92 crore, showcasing some positive financial results for the quarter ending September 2025.
Despite these achievements, the company faces challenges, including a high debt-to-equity ratio averaging 2.69 times, which suggests potential concerns regarding long-term financial stability. Furthermore, 45.03% of promoter shares are pledged, which could exert additional pressure on stock prices in a declining market.
Over the past year, Shalimar Wires has generated a return of -19.67%, underperforming against broader market indices. However, its profits have seen a significant increase of 282%, with a PEG ratio of 0.1, indicating a fair valuation relative to its earnings growth.
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