Recent Price Movement and Market Context
On 16 Dec 2025, Shalimar Paints touched an intraday low of Rs 57.62, closing the day with a decline of 1.91%. This marks the lowest price level the stock has seen in the past year, down from its 52-week high of Rs 143.80. The stock has recorded losses for three consecutive trading days, with a cumulative return of -4.46% during this period. Its performance today lagged behind the paints sector by approximately 2.05%, indicating relative weakness within its industry peers.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a persistent bearish momentum in the short to long term.
Meanwhile, the broader market has shown mixed signals. The Sensex opened lower by 187.75 points and closed down by 257.33 points at 84,768.28, a decline of 0.52%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, which indicates a generally bullish trend for the benchmark index.
Financial Performance and Underlying Concerns
Shalimar Paints’ financial data over the past year highlights several areas of concern. The company’s one-year stock return stands at -49.37%, contrasting with the Sensex’s positive return of 3.69% over the same period. This divergence underscores the stock’s underperformance relative to the broader market.
Operating profit growth has been subdued, with a negative annual growth rate of approximately -3.01% over the last five years. The company’s ability to service its debt is also under pressure, as reflected by an average EBIT to interest ratio of -2.88, indicating that earnings before interest and taxes have been insufficient to cover interest expenses.
Recent quarterly results further illustrate challenges. Net sales for the latest quarter stood at Rs 133.81 crore, showing a decline of 14.4% compared to the previous four-quarter average. Operating cash flow for the year was negative at Rs -58.61 crore, while interest expenses for the latest six months increased by 22.96% to Rs 12.64 crore. These figures point to strained liquidity and profitability metrics.
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Shareholding and Valuation Factors
Promoter shareholding in Shalimar Paints includes a significant proportion of pledged shares, currently at 61.35%. This figure has increased by 3.67% over the last quarter. High levels of pledged shares can exert additional downward pressure on stock prices, especially in volatile or declining markets.
The stock’s valuation metrics indicate elevated risk compared to its historical averages. Despite the negative returns over the past year, the company’s profits have shown a rise of 23.9%, suggesting some improvement in earnings that has not translated into share price gains. This disconnect may reflect market concerns about sustainability and broader financial health.
Over longer periods, Shalimar Paints has underperformed key indices such as the BSE500 across one-year, three-year, and three-month horizons, reinforcing the trend of subdued market confidence.
Sector and Industry Comparison
Within the paints industry, Shalimar Paints’ recent performance contrasts with the sector’s relative stability. The paints sector has generally maintained steadier valuations and returns, while Shalimar Paints has faced sharper declines. This divergence highlights company-specific factors influencing its stock price trajectory.
Market participants have noted that the company’s operating losses and weak long-term fundamental strength contribute to its current valuation challenges. The negative EBITDA and declining operating cash flows further compound concerns about the company’s financial resilience.
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Summary of Key Metrics
To summarise, Shalimar Paints’ stock price has reached Rs 57.62, its lowest level in 52 weeks, following a series of declines over recent days. The stock’s performance over the past year shows a return of -49.37%, significantly lagging behind the Sensex’s 3.69% gain. Operating profit growth has been negative over the last five years, and the company’s interest coverage remains weak.
Recent quarterly sales have fallen by 14.4%, while operating cash flows remain negative. Interest expenses have risen by nearly 23% in the last six months. The high proportion of pledged promoter shares adds to the stock’s vulnerability in a declining market environment.
Trading below all major moving averages, Shalimar Paints continues to face challenges in regaining upward momentum, with its valuation reflecting the ongoing financial pressures and market sentiment.
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