Stock Price Movement and Market Context
On 16 Feb 2026, Shalby Ltd. touched its lowest price in the past year at Rs.155.85, continuing a downward trajectory that has seen the stock lose 23.65% over the last 12 months. This decline contrasts sharply with the broader market, where the Sensex has gained 9.02% over the same period. Despite a slight recovery today after two consecutive days of falls, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day marks, indicating sustained bearish momentum.
In comparison, the Sensex opened lower by 146.36 points but rebounded to close 0.17% higher at 82,770.08, just 4.09% shy of its 52-week high of 86,159.02. Mega-cap stocks led this recovery, underscoring a divergence between large-cap market leaders and mid-cap stocks like Shalby.
Financial Performance and Profitability Metrics
Shalby’s recent financial results have been subdued. The company reported flat results for the quarter ending 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.
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. This figure is notably below industry averages and highlights challenges in operational leverage. Meanwhile, the company’s debt-equity ratio has risen to 0.53 times, the highest in recent periods, signalling a moderate increase in leverage.
Shareholding and Market Perception
Despite Shalby’s size and presence in the hospital sector, domestic mutual funds hold no stake in the company. Given that these funds typically conduct thorough on-the-ground research, their absence may indicate reservations about the company’s valuation or business prospects at current price levels.
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Long-Term Performance and Valuation Considerations
Over the past three years, Shalby has underperformed the BSE500 index, with returns consistently lagging both in the near and long term. The stock’s 52-week high was Rs.274.50, indicating a substantial decline of approximately 43% from that peak to the current low.
Despite these challenges, the company has demonstrated a strong ability to service its debt, with a Debt to EBITDA ratio of 1.18 times, which is relatively low and suggests manageable leverage in relation to earnings before interest, taxes, depreciation, and amortisation.
Net sales have grown at an annual rate of 23.17%, and operating profit has increased by 25.38% annually, signalling healthy top-line growth. However, this growth has not translated into profitability, as profits have declined by 76.2% over the past year.
Valuation metrics show that Shalby trades at a discount compared to its peers, with an Enterprise Value to Capital Employed ratio of 1.5 and a ROCE of 5, which is considered very attractive from a valuation standpoint. Nonetheless, the stock’s Mojo Score remains low at 40.0, with a Sell grade assigned on 1 Dec 2025, downgraded from Hold, reflecting cautious market sentiment.
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Technical Indicators and Sector Comparison
Technically, Shalby’s stock remains under pressure, trading below all major moving averages, which often signals a bearish trend. The recent slight gain after two days of decline may indicate short-term consolidation, but the overall trend remains downward.
In terms of sector performance, Shalby’s movement today was in line with the hospital sector, which has seen mixed results amid broader market volatility. The Sensex’s recovery and mega-cap leadership contrast with Shalby’s subdued performance, highlighting the divergence between large-cap and mid-cap stocks within the healthcare space.
Summary of Key Metrics
To summarise, Shalby Ltd.’s stock has reached a 52-week low of Rs.155.85, reflecting a 23.65% decline over the past year. Profitability has contracted sharply, with PBT down 71.14% and profits falling 76.2%. The company’s ROCE is low at 6.10%, and debt levels have increased moderately. Despite solid sales and operating profit growth, the stock’s valuation remains discounted relative to peers, though market sentiment remains cautious as reflected in its Mojo Grade of Sell.
These factors collectively illustrate the challenges faced by Shalby Ltd. in maintaining investor confidence and market valuation amid a competitive and evolving hospital sector landscape.
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