Shilp Gravures Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Shilp Gravures Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment potential in the current market environment.

Quality Assessment

As of 29 January 2026, Shilp Gravures Ltd holds an average quality grade. This reflects moderate operational efficiency and business fundamentals. Over the past five years, the company has demonstrated modest growth, with net sales increasing at an annualised rate of 7.77% and operating profit growing at 3.87%. While these figures indicate steady expansion, they fall short of the robust growth rates typically favoured by investors seeking high-quality stocks. The return on equity (ROE) stands at a low 2.7%, signalling limited profitability relative to shareholder equity, which is a concern for long-term value creation.

Valuation Considerations

Valuation is a critical factor influencing the 'Sell' rating. Currently, Shilp Gravures Ltd is classified as very expensive, trading at a price-to-book (P/B) ratio of 1.1. This premium valuation is notable given the company’s modest profitability and growth metrics. Compared to its peers, the stock’s valuation appears stretched, which raises questions about the sustainability of its current price levels. Despite the stock’s negative return of -25.40% over the past year, profits have risen by 41.7%, resulting in a low PEG ratio of 0.3. This disparity suggests that while earnings growth is strong, the market has not rewarded the stock accordingly, possibly due to concerns over other fundamental or technical factors.

Financial Trend Analysis

The financial trend for Shilp Gravures Ltd is positive, indicating improving profitability and operational metrics. The company’s profit growth over the last year is a bright spot, reflecting effective cost management or favourable market conditions. However, this positive financial trend has not translated into share price appreciation, as evidenced by the stock’s declining returns across multiple time frames: -5.69% over one week, -11.57% over one month, and -23.61% over three months. This divergence between financial performance and market sentiment is a key consideration for investors evaluating the stock’s future prospects.

Technical Outlook

From a technical perspective, the stock is currently bearish. The downward momentum is reflected in the consistent negative returns over recent periods, signalling investor caution and potential selling pressure. Technical indicators suggest that the stock may face resistance in reversing this trend in the near term. For investors relying on chart patterns and market sentiment, this bearish technical grade reinforces the recommendation to approach the stock with prudence.

Stock Performance Summary

As of 29 January 2026, Shilp Gravures Ltd’s stock performance has been underwhelming. The stock has delivered a year-to-date return of -11.51% and a one-year return of -25.40%. These figures highlight the challenges faced by the company in regaining investor confidence despite improving profit figures. The lack of positive price momentum, combined with a high valuation and average quality metrics, underpins the current 'Sell' rating.

Implications for Investors

For investors, the 'Sell' rating serves as a cautionary signal. It suggests that the stock may not offer attractive risk-adjusted returns in the near term, given its valuation and technical outlook. While the company’s improving financial trend is encouraging, it has yet to be reflected in the share price. Investors should carefully weigh these factors against their portfolio objectives and risk tolerance before considering exposure to Shilp Gravures Ltd.

Market Capitalisation and Sector Context

Shilp Gravures Ltd is classified as a microcap company within the Industrial Products sector. Microcap stocks often exhibit higher volatility and liquidity risks compared to larger companies. This context is important for investors to consider, as the stock’s price movements may be more susceptible to market sentiment and sector-specific developments. The industrial products sector itself has faced mixed conditions recently, with some segments experiencing supply chain disruptions and fluctuating demand, which may impact Shilp Gravures’ operational outlook.

Summary of Key Metrics

To summarise the key metrics as of 29 January 2026:

• Mojo Score: 36.0 (Sell grade)
• Quality Grade: Average
• Valuation Grade: Very Expensive
• Financial Grade: Positive
• Technical Grade: Bearish
• Price-to-Book Ratio: 1.1
• Return on Equity (ROE): 2.7%
• Annualised Net Sales Growth (5 years): 7.77%
• Annualised Operating Profit Growth (5 years): 3.87%
• Profit Growth (1 year): 41.7%
• Stock Returns (1 year): -25.40%

Conclusion

Shilp Gravures Ltd’s current 'Sell' rating by MarketsMOJO reflects a nuanced picture. While the company shows positive financial trends and profit growth, these are overshadowed by a stretched valuation, average quality metrics, and a bearish technical outlook. Investors should interpret this rating as a signal to exercise caution and consider the stock’s risk profile carefully. The rating update on 17 Nov 2025 provides a reference point, but the detailed analysis here, based on data as of 29 January 2026, offers the most relevant insight for making informed investment decisions today.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →