Recent Price Movement and Market Context
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 downward momentum. Over the past two trading sessions, Shalimar Paints . has recorded a cumulative return of -2.51%, with today’s decline of 1.03% further extending the negative trend. This underperformance is more pronounced when compared to the paints sector, where the stock lagged by 1.22% today.
In contrast, the broader market benchmark, the Sensex, opened lower by 285.28 points and is currently trading at 85,346.05, down 0.33%. Despite this dip, the Sensex remains close to its 52-week high of 85,801.70 and is positioned above its 50-day and 200-day moving averages, signalling a generally bullish trend in the wider market.
Long-Term Performance and Comparative Analysis
Over the last year, Shalimar Paints . has recorded a negative return of 31.20%, a stark contrast to the Sensex’s positive return of 10.62% during the same period. This divergence highlights the stock’s consistent underperformance relative to the benchmark. Furthermore, the stock has underperformed the BSE500 index in each of the past three annual periods, underscoring a persistent trend of lagging behind broader market indices.
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Financial Health and Profitability Indicators
Shalimar Paints . has exhibited signs of financial strain, with operating losses contributing to a weak long-term fundamental position. The company’s operating profit has shown a negative compound annual growth rate of approximately 3.01% over the past five years, indicating challenges in sustaining growth.
The company’s ability to service its debt is also under pressure, as reflected by an average EBIT to interest ratio of -2.88, signalling that earnings before interest and tax have been insufficient to cover interest expenses. The debt-equity ratio at the half-year mark stands at 0.67 times, the highest recorded level, suggesting increased leverage.
Operating cash flow for the fiscal year ended September 2025 was reported at a negative Rs.58.61 crores, the lowest in recent periods. Meanwhile, interest expenses for the latest six months have risen by 22.96% to Rs.12.64 crores, further weighing on profitability.
Stock Valuation and Risk Factors
The stock’s valuation appears elevated relative to its historical averages, with negative EBITDA contributing to a riskier profile. Despite the stock’s negative return of 31.20% over the past year, the company’s profits have shown a rise of 23.9%, indicating a complex dynamic between earnings and market valuation.
Another notable concern is the high proportion of promoter shares pledged, which currently stands at 61.35%. This figure has increased by 3.67% over the last quarter. Elevated pledged shares can exert additional downward pressure on the stock price, particularly in volatile or declining markets.
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Sector and Industry Overview
Operating within the paints industry, Shalimar Paints . faces competition from peers that have generally maintained steadier performance metrics. The paints sector has shown resilience in recent periods, with many companies trading above their key moving averages, contrasting with Shalimar Paints .’ current position below all major averages.
This divergence may reflect company-specific factors impacting investor sentiment and valuation, as well as broader market dynamics affecting the sector.
Summary of Key Metrics
To summarise, Shalimar Paints . has reached a 52-week low of Rs.68.01, down from a high of Rs.143.80 within the last year. The stock’s performance over the past 12 months shows a decline of 31.20%, while the Sensex has recorded a gain of 10.62% in the same period. The company’s financial indicators reveal operating losses, increased debt levels, and rising interest expenses, alongside a high proportion of pledged promoter shares.
These factors collectively contribute to the stock’s current valuation and market position, which remains below all significant moving averages and continues to underperform its sector and benchmark indices.
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