Shalby Ltd. Stock Falls to 52-Week Low of Rs.160.1 Amidst Continued Downtrend

Price Movement and Market Context

On 13 Feb 2026, Shalby Ltd. opened with a gap down of 2.28%, continuing its downward trajectory from the previous day. The stock underperformed its sector by 4.36% and hit an intraday low of Rs.160.1, representing a 5.38% drop from the previous close. This level marks the lowest price point for the stock in the past 52 weeks, a notable milestone that underscores the prevailing bearish sentiment.

The stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained weakness in its price momentum. Over the last two days, Shalby has delivered a negative return of 10.06%, signalling a sharp correction phase.

In comparison, the broader market benchmark, the Sensex, also faced pressure, opening 772.19 points lower and trading down 0.99% at 82,843.88. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 4% shy, and maintains a technical structure where its 50-day moving average is above the 200-day average, suggesting overall market resilience contrasting with Shalby’s underperformance.

Financial Performance and Valuation Concerns

Shalby Ltd.’s recent financial results have contributed to the subdued investor sentiment. The company reported flat results for the quarter ended December 2025, with Profit Before Tax (PBT) declining sharply by 71.14% to Rs.2.00 crore. This significant contraction in profitability has weighed heavily on the stock’s valuation.

Return on Capital Employed (ROCE) for the half-year period is at a low 6.10%, reflecting limited efficiency in generating returns from the capital invested. Meanwhile, the debt-equity ratio has risen to 0.53 times, the highest in recent periods, indicating a modest increase in leverage that may be a factor in investor caution.

Despite these challenges, the company maintains a relatively strong ability to service its debt, with a Debt to EBITDA ratio of 1.18 times, suggesting manageable financial obligations in the near term.

Long-Term Performance and Market Position

Over the past year, Shalby Ltd. has delivered a negative return of 22.07%, significantly underperforming the Sensex, which posted a positive return of 8.81% during the same period. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over one, three-year, and three-month horizons.

The stock’s 52-week high was Rs.274.5, indicating a substantial decline of over 40% from its peak price. This wide gap highlights the extent of the correction and the challenges faced by the company in regaining investor confidence.

Domestic mutual funds hold no stake in Shalby Ltd., a notable factor given their capacity for detailed research and selective investment. This absence may reflect a cautious stance on the company’s current valuation and business outlook.

Growth Metrics and Valuation Insights

Despite recent setbacks, Shalby Ltd. has demonstrated healthy long-term growth trends. Net sales have increased at an annual rate of 23.17%, while operating profit has grown at 25.38% per annum, indicating underlying business expansion.

The company’s valuation metrics present a mixed picture. With a Return on Capital Employed (ROCE) of 5 and an Enterprise Value to Capital Employed ratio of 1.6, the stock is considered to have a very attractive valuation relative to its capital base. It is trading at a discount compared to the average historical valuations of its peers in the hospital sector.

However, profitability has declined sharply, with profits falling by 76.2% over the past year, which has contributed to the negative sentiment and price correction.

Mojo Score and Analyst Ratings

Shalby Ltd. currently holds a Mojo Score of 40.0, categorised as a Sell rating. This represents a downgrade from its previous Hold rating as of 1 Dec 2025. The Market Capitalisation Grade stands at 3, reflecting a mid-tier market cap classification within its sector.

The downgrade aligns with the company’s recent financial results and price performance, signalling a cautious outlook from rating agencies and market analysts.

Summary of Key Metrics

To summarise, Shalby Ltd. is facing a challenging phase characterised by:

• A 52-week low price of Rs.160.1, down over 40% from its 52-week high of Rs.274.5
• Profit Before Tax decline of 71.14% in the latest quarter
• ROCE at a low 6.10% for the half-year period
• Debt-equity ratio rising to 0.53 times
• Negative one-year stock return of 22.07% versus Sensex’s positive 8.81%
• Absence of domestic mutual fund holdings
• Mojo Score downgrade from Hold to Sell

These factors collectively contribute to the current subdued market valuation and price performance of Shalby Ltd.

Market and Sector Comparison

While the hospital sector continues to show pockets of growth, Shalby Ltd.’s relative underperformance stands out. The stock’s discount to peer valuations and its recent financial results have led to a divergence from broader sector trends. The Sensex’s proximity to its 52-week high contrasts with Shalby’s new low, highlighting the stock-specific pressures it faces.

Conclusion

Shalby Ltd.’s stock reaching a 52-week low of Rs.160.1 reflects a combination of subdued profitability, valuation concerns, and market dynamics. The company’s financial metrics and rating changes provide a comprehensive backdrop to the price movement observed. While the stock remains under pressure, its long-term growth in sales and operating profit continues to be a notable aspect of its business profile.

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