Recent Price Movement and Market Context
On 3 December 2025, Shalimar Paints . touched Rs.64.82, its lowest level in the past year. This price point is considerably below its 52-week high of Rs.143.80, indicating a near 55% reduction from its peak. Over the last five trading days, the stock has declined by approximately 3.28%, continuing a pattern of subdued investor sentiment. The day’s movement was in line with the paints sector’s overall performance, which has experienced modest fluctuations.
Despite the broader market environment showing some resilience, with the Sensex closing at 84,837.95 points after a fall of 312.69 points (-0.35%), Shalimar Paints . has not mirrored this relative stability. The Sensex remains close to its 52-week high of 86,159.02, trading just 1.56% below that level and maintaining a bullish stance above its 50-day and 200-day moving averages. In contrast, Shalimar Paints . is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring its weaker momentum.
Financial Performance and Long-Term Trends
Shalimar Paints . has exhibited a challenging financial trajectory over the past year. The stock’s 1-year return stands at -38.92%, significantly underperforming the Sensex’s 4.94% gain during the same period. This underperformance extends beyond the short term, with the company lagging behind the BSE500 index over the last three years, one year, and three months.
Operating profit growth has been negative, with an annualised decline of 3.01% over the last five years. The company’s ability to manage its debt obligations remains constrained, as reflected by an average EBIT to interest ratio of -2.88, indicating that earnings before interest and tax have not been sufficient to cover interest expenses consistently.
In the most recent financial results for the nine months ending September 2025, interest expenses rose by 38.09% to Rs.17.51 crores, while operating cash flow for the year reached a low of Rs.-58.61 crores. The debt-to-equity ratio at the half-year mark was recorded at 0.67 times, the highest level noted, signalling increased leverage.
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Shareholding and Valuation Considerations
A notable factor contributing to the stock’s pressure 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 shareholding can exert additional downward pressure on the stock price, particularly in volatile or declining markets.
From a valuation perspective, Shalimar Paints . is trading at levels considered risky relative to its historical averages. Despite the negative stock returns over the past year, the company’s profits have shown a rise of 23.9%, suggesting a disconnect between earnings performance and market valuation.
Sector and Market Comparison
Within the paints sector, Shalimar Paints . has not kept pace with broader market indices or sectoral peers. The paints industry has experienced varied performance, but the company’s stock remains below all major moving averages, indicating a lack of upward momentum. The Sensex’s current bullish positioning contrasts with the stock’s subdued trend, highlighting the divergence between Shalimar Paints . and the broader market.
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Summary of Key Metrics
To summarise, Shalimar Paints . is currently trading at Rs.64.82, its lowest level in 52 weeks, following a five-day losing streak. The stock’s performance over the past year shows a decline of nearly 39%, contrasting with the Sensex’s positive returns. Financial indicators reveal operating cash flow challenges, rising interest costs, and increased leverage. The high level of pledged promoter shares adds to the stock’s vulnerability in a falling market environment.
While the paints sector and broader market indices maintain relatively stable or positive trends, Shalimar Paints . remains below key technical benchmarks, reflecting ongoing pressures on its valuation and market sentiment.
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