Stock Price Movement and Market Context
On 12 Jan 2026, Shalimar Wires Industries Ltd’s share price declined by 4.24%, closing at Rs.18.2, its lowest level in the past 52 weeks. This marks a continuation of a five-day losing streak during which the stock has fallen by 12.79%. The current price is substantially below its 52-week high of Rs.25.75, representing a decline of approximately 29.3% from that peak.
The stock’s performance today notably lagged its sector, Garments & Apparels, underperforming by 6.43%. Meanwhile, the Metal - Non Ferrous sector, within which the company operates, recorded a gain of 2.01%, highlighting the relative weakness of Shalimar Wires in the current market environment.
Technical indicators also reflect the stock’s subdued momentum, with the share price trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. This broad-based weakness in moving averages suggests sustained downward pressure on the stock over multiple time horizons.
Broader Market Environment
The decline in Shalimar Wires shares coincides with a broader market downturn. The Sensex opened 140.93 points lower and closed down by 547.11 points at 82,888.20, a drop of 0.82%. Despite this fall, the Sensex remains within 3.95% of its 52-week high of 86,159.02. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals for the broader market.
Financial Performance and Valuation Metrics
Over the past year, Shalimar Wires Industries Ltd has delivered a total return of -16.43%, significantly underperforming the Sensex’s positive return of 7.11% and the BSE500’s 6.12% gain. Despite this, the company has reported some positive financial results in recent quarters. Notably, net profit grew by 46.53% in the quarter ending September 2025, with the company declaring positive results for two consecutive quarters.
Key financial ratios include a debt-equity ratio of 2.31 times (lowest in recent periods) and an operating profit to interest coverage ratio of 2.27 times, indicating some improvement in the company’s ability to service its debt. The profit after tax (PAT) for the quarter reached Rs.1.48 crore, the highest recorded in recent quarters.
Return on Capital Employed (ROCE) stands at 12.1%, and the enterprise value to capital employed ratio is 1.4, suggesting an attractive valuation relative to capital utilisation. The company’s PEG ratio is 0.1, reflecting low price-to-earnings growth, which may indicate undervaluation compared to peers.
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Long-Term Growth and Debt Profile
Despite recent positive earnings growth, the company’s long-term fundamentals present some concerns. Net sales have grown at an annual rate of 9.81% over the last five years, indicating modest top-line expansion. The average debt-to-equity ratio remains high at 2.87 times, reflecting significant leverage on the balance sheet.
Return on Equity (ROE) averaged 2.81% over the same period, signalling relatively low profitability per unit of shareholders’ funds. This low ROE suggests that the company has struggled to generate strong returns for equity investors over the longer term.
Additionally, 45.03% of promoter shares are pledged, which can exert additional downward pressure on the stock price in falling markets, as pledged shares may be subject to forced selling if margin requirements are not met.
Relative Performance and Sector Comparison
Shalimar Wires Industries Ltd has underperformed not only the broader market but also its sector peers. While the BSE500 index has generated a 6.12% return over the past year, the stock has declined by 16.43%. This underperformance is notable given the company’s sector, Garments & Apparels, which has seen mixed results amid varying market conditions.
The stock’s current Mojo Score is 56.0, with a Mojo Grade of Hold, upgraded from Sell on 5 Jan 2026. The Market Cap Grade is 4, reflecting its standing among companies of similar market capitalisation. These ratings indicate a cautious stance based on the company’s recent financial and market performance.
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Summary of Key Metrics
To summarise, Shalimar Wires Industries Ltd’s stock has reached a 52-week low of Rs.18.2, reflecting a combination of market-wide declines and company-specific factors. The stock’s five-day consecutive fall and underperformance relative to sector and market indices highlight ongoing challenges.
Financially, the company has shown recent profit growth and improved interest coverage, but its high leverage, modest sales growth, and low return on equity temper the outlook. The significant proportion of pledged promoter shares adds a layer of risk in volatile market conditions.
While the stock trades at a discount to peers and exhibits some attractive valuation metrics, the overall performance and fundamental profile suggest a cautious approach in assessing its current market position.
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