Recent Price Movement and Market Context
On 8 December 2025, Shalimar Paints . touched Rs.60.69, its lowest level in the past year. This price point represents a sharp contrast to its 52-week high of Rs.143.80, indicating a substantial contraction in market value. Over the last eight trading days, the stock has declined by approximately 8.99%, underperforming its sector by 0.28% on the day of the new low.
The broader market, represented by the Sensex, opened flat but moved into negative territory, trading at 85,437.59 points, down 0.32% from the previous close. Despite this, the Sensex remains close to its 52-week high of 86,159.02, supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average. This divergence highlights the relative weakness of Shalimar Paints . compared to the overall market.
Technical Indicators Signal Continued Weakness
Technical analysis reveals that Shalimar Paints . is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests persistent downward momentum and a lack of short- to medium-term buying interest. The stock’s inability to breach these resistance levels has contributed to its ongoing slide.
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Financial Performance and Profitability Trends
Shalimar Paints . has exhibited a challenging financial trajectory over recent years. The company’s operating profit has shown a negative compound annual growth rate of approximately 3.01% over the last five years, indicating subdued growth in core earnings. The latest quarterly net sales stood at Rs.133.81 crores, reflecting a decline of 14.4% compared to the average of the previous four quarters.
Operating cash flow for the fiscal year ended September 2025 was recorded at a negative Rs.58.61 crores, the lowest in recent periods. This negative cash flow position underscores the strain on internal liquidity. Additionally, interest expenses for the latest six-month period amounted to Rs.12.64 crores, having risen by 22.96%, which further pressures the company’s earnings before interest and taxes (EBIT) to interest coverage ratio. The average EBIT to interest ratio remains negative at -2.88, signalling difficulties in servicing debt obligations from operating profits.
Shareholding and Market Risks
Promoter shareholding in Shalimar Paints . stands at 61.35%, with a notable proportion of these shares pledged as collateral. The pledged share percentage has increased by 3.67% over the last quarter, which can exert additional downward pressure on the stock price in volatile market conditions. High promoter pledging often raises concerns regarding financial stability and potential liquidity needs.
Over the past year, the stock has generated a return of -46.58%, significantly underperforming the Sensex, which recorded a positive return of 4.56% during the same period. The stock’s performance has also lagged behind the broader BSE500 index across one-year, three-year, and three-month timeframes, reflecting persistent underperformance relative to market benchmarks.
Valuation and Risk Considerations
Shalimar Paints . is currently trading at valuations that suggest elevated risk compared to its historical averages. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) remain negative, which adds to concerns about profitability and cash generation capacity. Despite a 23.9% rise in profits over the past year, the stock’s price contraction indicates that market participants are factoring in broader challenges.
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Sector and Industry Context
Operating within the paints industry, Shalimar Paints . faces competition from peers that have demonstrated stronger financial metrics and more stable growth patterns. The paints sector has experienced mixed performance, with some companies benefiting from steady demand and cost efficiencies, while others have struggled with margin pressures and fluctuating raw material costs.
Shalimar Paints .’s current market capitalisation grade is moderate, but the company’s weak long-term fundamental strength and negative operating results have contributed to its subdued market valuation. The stock’s recent price action and financial indicators suggest that it remains under pressure relative to sector peers and broader market indices.
Summary of Key Metrics
To summarise, Shalimar Paints . has recorded the following key data points:
- New 52-week low price: Rs.60.69
- 52-week high price: Rs.143.80
- One-year stock return: -46.58%
- Sensex one-year return: +4.56%
- Operating cash flow (FY): -Rs.58.61 crores
- Interest expense (latest six months): Rs.12.64 crores, up 22.96%
- Net sales (latest quarter): Rs.133.81 crores, down 14.4%
- Promoter shareholding pledged: 61.35%, increased by 3.67% in last quarter
- Trading below all major moving averages
These figures collectively illustrate the challenges faced by Shalimar Paints . in maintaining its market position and financial stability over the recent period.
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