Recent Price Movement and Market Context
On 1 Dec 2025, Shalimar Paints . recorded its lowest price in the past year at Rs.65, continuing a downward trend that has seen the stock lose approximately 1.69% over the last three trading days. This decline aligns with the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained weakness in price momentum.
In comparison, the broader Sensex index opened the day 359.25 points higher but reversed course to close down by 424.02 points, or 0.08%, at 85,641.90. The Sensex remains close to its 52-week high of 86,055.86, trading just 0.48% below that peak. Meanwhile, the BSE Small Cap index showed modest gains of 0.05%, indicating some resilience in smaller stocks despite the broader market's mixed performance.
Long-Term Price Performance and Sector Comparison
Over the past year, Shalimar Paints . has experienced a price decline of 38.12%, a stark contrast to the Sensex’s positive return of 7.32% during the same period. The stock’s 52-week high was Rs.143.80, underscoring the extent of the current price contraction. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
The paints sector, in which Shalimar Paints . operates, has faced a mixed environment. While some peers have maintained steadier valuations, Shalimar Paints . has struggled to maintain upward price momentum, as reflected in its current position well below all major moving averages.
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Financial Metrics and Debt Profile
Shalimar Paints . has exhibited signs of financial strain over recent periods. The company reported operating cash flow at its lowest annual level of Rs. -58.61 crores, indicating cash outflows from core business activities. Interest expenses for the latest six months stood at Rs.12.64 crores, reflecting a growth rate of 22.96% compared to previous periods. This increase in interest burden adds pressure on the company’s ability to service debt efficiently.
The debt-to-equity ratio at the half-year mark reached 0.67 times, the highest recorded level for the company, signalling a relatively elevated leverage position. Additionally, the average EBIT to interest ratio remains negative at -2.88, highlighting challenges in covering interest obligations from earnings before interest and taxes.
Shareholding and Market Risks
A notable factor contributing to the stock’s price pressure is the high proportion of promoter shares pledged, currently at 61.35%. This level has increased by 3.67% over the last quarter. Elevated pledged shares can exert additional downward pressure on the stock price during market downturns, as pledged shares may be subject to liquidation in adverse conditions.
The stock’s valuation also reflects increased risk, trading at levels considered more volatile compared to its historical averages. Despite the negative price returns over the past year, the company’s profits have shown a rise of 23.9%, indicating some divergence between earnings performance and market valuation.
Sector and Market Positioning
Within the paints industry, Shalimar Paints . faces challenges in sustaining long-term growth. Operating profit has shown a compound annual decline of 3.01% over the last five years, suggesting subdued expansion in core profitability. The company’s fundamental strength is considered weak relative to peers, with ongoing pressures on earnings and cash flow generation.
While the broader market indices maintain bullish technical indicators, including the Sensex trading above its 50-day moving average and the 50 DMA positioned above the 200 DMA, Shalimar Paints . remains in a bearish technical setup. This divergence highlights the stock’s current relative weakness within the sector and market.
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Summary of Recent Performance Trends
Shalimar Paints . has experienced a consistent decline in stock price over the past year, with a total return of -38.12%. This contrasts with the broader market’s positive returns and reflects the company’s challenges in maintaining competitive growth and financial stability. The stock’s current trading below all major moving averages further emphasises the subdued market sentiment.
Financial indicators such as rising interest expenses, increased leverage, and a high proportion of pledged promoter shares contribute to the cautious outlook surrounding the stock. Despite some improvement in profit figures, the overall market valuation remains under pressure.
In the context of the paints sector and the wider market environment, Shalimar Paints . continues to face headwinds that have culminated in the recent 52-week low price of Rs.65. This level marks a significant point in the stock’s price history and reflects the ongoing challenges faced by the company.
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