Recent Price Movement and Market Context
On 24 Feb 2026, Shalby Ltd. closed at Rs.151.55, down 1.17% on the day, underperforming its hospital sector by 0.71%. This marks the fourth consecutive day of losses, with the stock declining by 5.58% over this period. The current price is substantially below its 52-week high of Rs.274.50, representing a drop of approximately 44.8% from that peak.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. In comparison, the Sensex index has also faced pressure, falling sharply by 960.29 points (-1.44%) to 82,092.25, though it remains within 4.95% of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a more stable medium-term market trend than that of Shalby Ltd.
Financial Performance and Key Metrics
Shalby Ltd.’s financial results have contributed to the stock’s subdued performance. The company reported flat results for the quarter ended December 2025, with profit before tax (PBT) falling sharply by 71.14% to Rs.2.00 crore. This significant contraction in profitability has weighed heavily on investor sentiment.
The company’s return on capital employed (ROCE) for the half-year period stands at a low 6.10%, reflecting limited efficiency in generating returns from its capital base. Meanwhile, the debt-to-equity ratio has increased to 0.53 times, the highest level recorded in recent periods, indicating a relatively higher leverage position.
Despite these concerns, Shalby Ltd. maintains a manageable debt servicing capacity, with a Debt to EBITDA ratio of 1.18 times, suggesting that the company’s earnings remain sufficient to cover its debt obligations.
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Long-Term Growth and Valuation Considerations
Over the long term, Shalby Ltd. has demonstrated healthy growth in net sales, expanding at an annual rate of 23.17%, with operating profit growing at 25.38% annually. These figures indicate a solid underlying business expansion despite recent profit pressures.
The company’s valuation metrics suggest a very attractive position relative to capital employed, with an enterprise value to capital employed ratio of 1.5. This valuation is discounted compared to the historical averages of its peers within the hospital sector.
However, the stock’s performance over the past year has been disappointing, with a total return of -24.04%, significantly lagging the Sensex’s positive 10.26% return over the same period. Profitability has also deteriorated, with profits falling by 76.2% year-on-year, highlighting challenges in maintaining earnings momentum.
Domestic mutual funds currently hold no stake in Shalby Ltd., a notable factor given their capacity for detailed company research. This absence may reflect a cautious stance on the stock’s current valuation or business outlook.
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Comparative Performance and Sector Positioning
Shalby Ltd.’s underperformance extends beyond the recent year. The stock has lagged the BSE500 index over the last three years, one year, and three months, indicating a persistent trend of below-par returns relative to the broader market.
The hospital sector itself has experienced mixed performance, with Shalby Ltd. notably underperforming its peers. The company’s market capitalisation grade stands at 3, reflecting a mid-tier size within its sector, while its Mojo Score of 40.0 and a recent downgrade from Hold to Sell on 1 Dec 2025 underline the cautious market sentiment.
Overall, the stock’s current valuation and financial metrics reflect a complex picture of growth potential tempered by recent earnings declines and market pressures.
Summary of Key Financial Indicators
To summarise, Shalby Ltd.’s key financial indicators as of the latest reporting period include:
- Profit Before Tax (Quarterly): Rs.2.00 crore, down 71.14%
- Return on Capital Employed (Half-Year): 6.10%
- Debt-to-Equity Ratio (Half-Year): 0.53 times
- Debt to EBITDA Ratio: 1.18 times
- Net Sales Growth (Annual): 23.17%
- Operating Profit Growth (Annual): 25.38%
- Enterprise Value to Capital Employed: 1.5
- One-Year Stock Return: -24.04%
- Profit Decline Over Past Year: -76.2%
Market Capitalisation and Ownership
Despite its size, Shalby Ltd. has attracted limited interest from domestic mutual funds, which currently hold no stake in the company. This absence is notable given the funds’ ability to conduct in-depth research and their typical involvement in companies with strong fundamentals or growth prospects.
The company’s market capitalisation grade of 3 places it in the mid-range category, which may influence institutional investor participation and liquidity considerations.
Conclusion
Shalby Ltd.’s stock reaching a 52-week low of Rs.151.55 reflects a combination of subdued profitability, cautious market sentiment, and a challenging price environment. While the company continues to demonstrate long-term sales growth and maintains manageable debt levels, recent earnings declines and valuation pressures have contributed to the stock’s underperformance relative to its sector and the broader market indices.
Investors and market participants will note the stock’s position below all major moving averages and its downgrade to a Sell rating as of December 2025, underscoring the prevailing cautious outlook.
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