Recent Price Movement and Market Context
On 24 Nov 2025, Shalimar Paints . recorded its lowest price in the past year at Rs.67, underperforming its sector by 2.02% on the day. 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 last three sessions, the stock has declined steadily, reflecting a period of persistent selling pressure.
In comparison, the Sensex opened 88.12 points higher but later retreated by 161.79 points, trading at 85,158.25, which is just 0.76% shy of its 52-week high of 85,801.70. The benchmark index continues to trade above its 50-day moving average, which itself remains above the 200-day moving average, signalling an overall bullish trend in the broader market.
Long-Term Performance and Valuation
Over the past year, Shalimar Paints . has delivered a return of -33.17%, a stark contrast to the Sensex’s positive 7.64% return during the same period. The stock’s 52-week high was Rs.143.80, highlighting the extent of the decline to the current low. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
The stock’s valuation appears pressured, trading at levels considered risky relative to its historical averages. Despite the negative price trend, the company’s profits have shown a 23.9% rise over the past year, suggesting a disconnect between earnings performance and market valuation.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Financial Health and Debt Metrics
Shalimar Paints . has exhibited signs of financial strain in recent periods. The company reported operating cash flow at a low of Rs. -58.61 crores in the latest fiscal year, indicating cash outflows from core business activities. Interest expenses for the latest six months stood at Rs.12.64 crores, reflecting a growth rate of 22.96% compared to previous periods.
The debt-equity ratio at the half-year mark reached 0.67 times, the highest recorded level, suggesting an increased reliance on debt financing. The company’s ability to service its debt remains weak, with an average EBIT to interest ratio of -2.88, underscoring challenges in covering interest obligations from operating earnings.
Additionally, the stock is considered risky due to negative EBITDA figures, which further complicate the valuation and risk profile for investors.
Promoter Shareholding and Market Pressure
A notable factor contributing to the stock’s downward pressure is the high proportion of pledged promoter shares, which currently stands at 61.35%. This level has increased by 3.67% over the last quarter. In volatile or falling markets, elevated pledged shareholding can exert additional selling pressure, as promoters may be compelled to liquidate holdings to meet margin requirements or debt obligations.
Holding Shalimar Paints . from Paints? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Sector and Industry Overview
Operating within the paints industry, Shalimar Paints . faces a competitive environment where market dynamics and cost structures play a significant role. The sector has seen varied performance, with some companies maintaining steady growth while others encounter headwinds related to raw material costs and demand fluctuations.
Shalimar Paints .’s recent financial indicators suggest challenges in sustaining long-term growth, with operating profit showing a negative annual growth rate of 3.01% over the last five years. This trend contrasts with some peers in the paints sector that have managed to maintain or improve profitability metrics.
Summary of Key Concerns
The stock’s fall to Rs.67, its 52-week low, reflects a combination of factors including sustained price weakness, underperformance relative to the broader market and sector, and financial metrics that point to elevated risk. The company’s cash flow position, rising interest costs, and increased debt levels contribute to a cautious market assessment.
Moreover, the high level of pledged promoter shares adds a layer of vulnerability in declining market conditions, potentially amplifying downward price movements. The divergence between profit growth and stock price performance highlights the complexity of the current valuation environment for Shalimar Paints .
Conclusion
Shalimar Paints .’s recent trading at a 52-week low of Rs.67 underscores the challenges faced by the company amid a broader market that remains relatively resilient. The stock’s performance over the past year and longer term indicates persistent pressures, with financial indicators signalling areas of concern. Investors and market participants will continue to monitor the company’s financial developments and market positioning as it navigates these conditions.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
