Shiva Mills Ltd is Rated Strong Sell

Understanding the Current Rating

The Strong Sell rating assigned to Shiva Mills Ltd indicates a cautious stance for investors, suggesting that the stock is expected to underperform the broader market and may carry elevated risks. This recommendation is derived from 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 appeal.

Quality Assessment

As of 14 January 2026, Shiva Mills Ltd’s quality grade is classified as below average. This reflects concerns about the company’s fundamental strength and operational efficiency. Over the past five years, the company has experienced a steep decline in operating profits, with a compound annual growth rate (CAGR) of -210.36%. Such a drastic contraction signals persistent challenges in generating sustainable earnings.

Additionally, the average Return on Equity (ROE) stands at a modest 5.64%, indicating limited profitability relative to shareholders’ funds. This low ROE suggests that the company is not effectively utilising its equity base to generate returns, which is a critical consideration for long-term investors seeking value creation.

Valuation Considerations

The valuation grade for Shiva Mills Ltd is currently deemed risky. The stock trades at levels that imply heightened uncertainty compared to its historical averages. Negative operating profits and deteriorating financial results have contributed to this perception. The latest data shows that the company’s net sales for the quarter ending September 2025 were ₹30.44 crores, marking one of the lowest points in recent periods.

Moreover, the stock’s dividend per share (DPS) and dividend payout ratio (DPR) are both at zero, reflecting an absence of shareholder returns through dividends. This lack of income distribution further diminishes the stock’s attractiveness from a valuation standpoint.

Financial Trend Analysis

Financially, Shiva Mills Ltd is exhibiting a negative trend. The company reported negative results in the September 2025 quarter, underscoring ongoing operational difficulties. Over the past year, the stock has delivered a return of -39.30%, significantly underperforming the benchmark indices.

Profitability has also declined sharply, with profits falling by approximately 48% over the last year. This persistent downward trajectory in earnings and returns highlights the challenges faced by the company in reversing its fortunes.

Technical Outlook

The technical grade is assessed as mildly bearish, indicating that market sentiment and price momentum are not favourable. The stock’s price performance over various time frames corroborates this view: a 1-month decline of 10.61%, a 3-month drop of 16.34%, and a 6-month fall of 27.21%. Year-to-date, the stock has decreased by 7.27%, reinforcing the cautious technical stance.

Consistent underperformance against the BSE500 benchmark over the past three years further emphasises the stock’s weak technical positioning. This trend suggests that investors should approach the stock with prudence, considering the prevailing market dynamics.

Implications for Investors

For investors, the Strong Sell rating signals a recommendation to avoid or divest from Shiva Mills Ltd at this juncture. The combination of weak fundamentals, risky valuation, negative financial trends, and bearish technical indicators points to a challenging environment for the stock. Investors seeking capital preservation and steady returns may find more favourable opportunities elsewhere in the Garments & Apparels sector or broader market.

It is important to note that while the rating was updated on 06 February 2025, the current analysis as of 14 January 2026 confirms that the company has not shown signs of recovery or improvement that would warrant a more positive outlook.

Sector and Market Context

Shiva Mills Ltd operates within the Garments & Apparels sector, a space that has seen varied performance across companies depending on market conditions, consumer demand, and supply chain factors. Compared to its peers, Shiva Mills’ microcap status and deteriorating fundamentals place it at a disadvantage. The sector overall has witnessed pockets of growth, but Shiva Mills’ persistent underperformance highlights company-specific challenges rather than sector-wide issues.

Investors should consider the broader market environment, including consumer spending trends and raw material cost pressures, which may continue to impact the company’s ability to rebound in the near term.

Summary of Key Metrics as of 14 January 2026

To recap, the stock’s performance metrics reveal a difficult investment landscape:

• 1-day change: 0.00%


• 1-week decline: -6.98%


• 1-month decline: -10.61%


• 3-month decline: -16.34%


• 6-month decline: -27.21%


• Year-to-date decline: -7.27%


• 1-year decline: -39.30%

These figures underscore the stock’s sustained downward trajectory and reinforce the rationale behind the Strong Sell rating.

Conclusion

In conclusion, Shiva Mills Ltd’s current Strong Sell rating by MarketsMOJO reflects a comprehensive assessment of its weak quality, risky valuation, negative financial trends, and bearish technical outlook. Investors should carefully weigh these factors when considering their portfolio allocations. The company’s ongoing challenges and lack of positive catalysts suggest that caution remains the prudent approach for the foreseeable future.

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