Recent Price Movement and Market Context
On 9 December 2025, Shalimar Paints . recorded its lowest price in the past year at Rs.58.77. This level represents a decline of nearly 12% over the last nine days, during which the stock has consecutively lost value. Despite this, the stock outperformed its sector on the day by 1.9%, even as the paints sector itself experienced a fall of 2.83%. The broader market, represented by the Sensex, also faced pressure, closing 276.77 points lower at 84,466.10, down 0.75% from the previous session.
The Sensex remains close to its 52-week high of 86,159.02, trading approximately 2% below that peak. Notably, the Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend for the benchmark index. In contrast, Shalimar Paints . is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the stock’s relative weakness within the paints sector and the broader market.
Long-Term Performance and Valuation
Over the past year, Shalimar Paints . has delivered a return of -50.31%, a stark contrast to the Sensex’s positive return of 3.58% during the same period. The stock’s 52-week high was Rs.143.80, highlighting the extent of the decline from its peak. This underperformance extends beyond the last year, with the stock also lagging behind the BSE500 index over the last three years, one year, and three months.
From a valuation perspective, the stock is considered risky relative to its historical averages. Despite the negative price movement, the company’s profits have shown a rise of 23.9% over the past year, indicating a disconnect between earnings performance and market valuation. This divergence may reflect investor caution given other financial metrics and market conditions.
Our latest weekly pick is live! This Large Cap from Diamond & Gold Jewellery comes with clear entry and exit targets. See the detailed report with target price now!
- - Clear entry/exit targets
- - Target price revealed
- - Detailed report available
Financial Health and Profitability Indicators
Shalimar Paints . has exhibited a weak long-term fundamental profile. Operating profit has shown a negative compound annual growth rate of approximately -3.01% over the last five years. The company’s ability to service its debt is also under pressure, with an average EBIT to interest ratio of -2.88, indicating that earnings before interest and taxes are insufficient to cover interest expenses.
Recent quarterly results further illustrate challenges. Net sales for the latest quarter 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 year was recorded at a negative Rs.58.61 crores, the lowest level in recent periods. Meanwhile, interest expenses for the latest six months totalled Rs.12.64 crores, representing a growth rate of 22.96% over prior periods.
Shareholding and Market Pressure
Another factor contributing to the stock’s downward pressure is the high proportion of promoter shares pledged as collateral. Currently, 61.35% of promoter holdings are pledged, with an increase of 3.67% in pledged shares over the last quarter. In a declining market environment, elevated pledged shares can exacerbate selling pressure as lenders may seek to liquidate holdings to cover margin requirements.
The combination of subdued sales, negative operating cash flow, rising interest costs, and significant pledged promoter shares has contributed to the stock’s recent decline and its position below key moving averages.
Is Shalimar Paints . your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Sector and Market Comparison
The paints sector has experienced a decline of 2.83% recently, indicating some sector-wide pressures. However, Shalimar Paints . has underperformed even this sectoral movement, with a sharper fall over the past year and a more pronounced drop in recent trading sessions. The stock’s relative weakness is further highlighted by its position below all major moving averages, while the Sensex maintains a bullish stance above its 50-day and 200-day averages.
While the broader market remains resilient, Shalimar Paints . faces challenges that have contributed to its current valuation and price levels. The stock’s 52-week low of Rs.58.77 marks a significant milestone in its recent price journey, reflecting a combination of financial performance and market dynamics.
Summary
Shalimar Paints . has reached a new 52-week low of Rs.58.77 after a sustained period of price decline spanning nine consecutive sessions. The stock’s performance contrasts with the broader market and sector trends, with key financial indicators such as declining sales, negative operating cash flow, rising interest expenses, and a high proportion of pledged promoter shares contributing to the current market assessment. Trading below all major moving averages, the stock’s valuation reflects these factors amid a paints sector that has also faced downward pressure.
Investors and market participants will continue to monitor the company’s financial metrics and market developments as the stock navigates this challenging phase.
Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →
