On 18 Nov 2025, Shalimar Paints recorded its lowest price in the past year at Rs.69.61, continuing a sequence of losses over the last four trading sessions. During this period, the stock has delivered a cumulative return of -9.8%, indicating persistent selling pressure. This decline contrasts with the broader market, where the Sensex, despite a volatile session, remains close to its 52-week high, trading at 84,856.77 points, just 0.51% shy of its peak at 85,290.06.
The stock’s performance today also lagged behind its sector peers, underperforming the Paints sector by 1.72%. Technical indicators show Shalimar Paints trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling a bearish momentum that has persisted over recent months.
Over the past year, Shalimar Paints has delivered a total return of -31.75%, a stark contrast to the Sensex’s positive return of 9.72% over the same period. The stock’s 52-week high was Rs.143.80, highlighting the extent of the decline from its peak levels.
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Financially, Shalimar Paints has exhibited signs of strain. The company’s operating profit has shown a negative compound annual growth rate of approximately -3.01% over the last five years, indicating subdued long-term growth. The latest half-year data reveals a debt-to-equity ratio of 0.67 times, which is the highest recorded for the company, suggesting an increased reliance on debt financing.
Interest expenses have also risen, with the latest six-month figure at Rs.12.64 crores, reflecting a growth rate of 22.96%. This increase in interest outgo, combined with a negative EBIT to interest coverage ratio averaging -2.88, points to challenges in servicing debt obligations effectively.
Operating cash flow for the fiscal year ended 2025 stands at a low of Rs.-58.61 crores, underscoring cash generation difficulties. Additionally, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) remain in negative territory, which adds to the risk profile of the stock.
Promoter shareholding dynamics also contribute to the stock’s pressure. Currently, 61.35% of promoter shares are pledged, with this proportion having increased by 3.67% over the last quarter. In a declining market environment, such high levels of pledged shares can exert additional downward pressure on the stock price.
Shalimar Paints’ performance relative to broader market indices and sector benchmarks has been below par in both the short and long term. The stock has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in regaining investor confidence and market momentum.
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Market conditions on the day of the new low saw the Sensex open 91.42 points higher but subsequently decline by 185.60 points, closing marginally down by 0.11%. Despite this, the Sensex remains above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the broader market.
In contrast, Shalimar Paints’ stock price trajectory remains subdued, reflecting company-specific factors that have weighed on its valuation. The combination of negative operating cash flows, rising interest costs, elevated debt levels, and a high proportion of pledged promoter shares has contributed to the stock’s current position at its 52-week low.
While the Paints sector overall has shown resilience, Shalimar Paints’ financial metrics and market performance highlight ongoing challenges. The stock’s trading below all major moving averages further emphasises the prevailing bearish sentiment among market participants.
Investors analysing Shalimar Paints should consider these data points in the context of the company’s recent performance and sector dynamics. The stock’s current valuation and financial indicators provide a comprehensive picture of its standing within the Paints industry and the broader market environment.
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