Recent Price Movement and Market Context
On 17 Dec 2025, Shalimar Paints recorded an intraday low of Rs.56, representing a decline of 2.83% on the day and a cumulative fall of 6.74% over the past four trading days. This sequence of losses has pushed the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. The stock’s performance today also lagged behind the paints sector by 0.77%, indicating relative weakness within its industry peers.
In contrast, the broader market benchmark, the Sensex, opened higher by 176.40 points but later retreated by 345.49 points to close at 84,510.77, down 0.2%. The Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, which suggests a generally positive market environment despite the pressure on Shalimar Paints.
Long-Term Price Performance
Over the past year, Shalimar Paints has recorded a total return of -52.09%, a stark contrast to the Sensex’s 4.76% gain 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, underscoring a prolonged period of subdued returns for shareholders.
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Financial and Operational Indicators
Shalimar Paints’ financial data reveals several areas of concern. The company has reported operating losses, which have contributed to a weak long-term fundamental position. Over the last five years, operating profit has shown a negative compound annual growth rate of approximately 3.01%, indicating a contraction in core profitability.
The company’s ability to service its debt is also under strain, with an average EBIT to interest ratio of -2.88, reflecting insufficient earnings before interest and taxes relative to interest obligations. This ratio suggests that the company’s earnings have not been adequate to cover interest expenses, raising questions about financial stability.
Recent quarterly results further illustrate challenges, with net sales for the latest quarter reported at Rs.133.81 crores, down 14.4% compared to the average of the previous four quarters. Operating cash flow for the year has reached a low of Rs.-58.61 crores, signalling cash generation difficulties. Meanwhile, interest expenses for the latest six months have grown by 22.96%, amounting to Rs.12.64 crores, adding to the financial burden.
Shareholding and Market Risks
A notable factor impacting the stock’s performance is the high proportion of promoter shares pledged, which currently stands at 61.35%. This level of pledged shares has increased by 3.67% over the last quarter. In volatile or declining markets, elevated pledged holdings can exert additional downward pressure on stock prices, as promoters may be compelled to liquidate shares to meet margin requirements.
The stock’s valuation also appears risky relative to its historical averages, with negative EBITDA figures contributing to investor caution. Despite the stock’s negative returns over the past year, reported profits have shown a rise of 23.9%, indicating some divergence between earnings and market valuation.
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Sector and Market Position
Operating within the paints industry, Shalimar Paints faces competition from peers that have generally maintained steadier performance metrics. The paints sector has seen mixed trends, but Shalimar Paints’ relative underperformance is evident when compared to sector averages and broader market indices. The stock’s current trading below all major moving averages contrasts with the Sensex’s position above its 50-day and 200-day moving averages, highlighting the divergence in momentum.
While the Sensex remains within 2% of its 52-week high, Shalimar Paints has moved to its lowest price point in a year, underscoring the stock-specific pressures that have weighed on its valuation.
Summary of Key Metrics
To summarise, Shalimar Paints’ stock price has declined to Rs.56, its lowest level in 52 weeks, following a four-day losing streak and a total return of -52.09% over the past year. The company’s financial indicators show operating losses, declining sales, rising interest costs, and a high level of pledged promoter shares. These factors collectively contribute to the stock’s subdued market performance and valuation challenges.
Investors and market participants will note the contrast between Shalimar Paints’ trajectory and the broader market’s relative strength, as reflected in the Sensex’s proximity to its 52-week high and positive moving average trends.
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