Shalby Faces Financial Challenges Despite Record Net Sales and Market Resilience

Shalby, a small-cap player in the hospital industry, has recently undergone a financial trend adjustment reflecting its performance metrics. The company reported its highest net sales for the quarter ending June 2025, reaching Rs 296.43 crore. However, challenges persist as profit before tax (PBT) from operations has declined significantly, falling to Rs 15.64 crore, a decrease of 24.48%. Additionally, the profit after tax (PAT) has also seen a notable drop, now at Rs 8.92 crore, down by 43.0%.
On the financial health front, Shalby is grappling with a low return on capital employed (ROCE) of 6.43%, alongside a concerning inventory turnover ratio of just 3.41 times. The debt-equity ratio stands at 0.48 times, marking the highest level in recent periods, which may raise concerns about financial leverage.

In terms of market performance, Shalby has shown resilience over the past week and month, outperforming the Sensex. The stock has returned 0.39% over the last week and 11.25% over the past month, contrasting with a slight decline in the Sensex. However, year-to-date figures indicate a decline of 11.6%, while the stock has performed well over three and five years, with returns of 75.21% and 137.69%, respectively.