Stock Performance and Market Context
On 26 Feb 2026, Shalimar Wires Industries Ltd’s share price declined by 1.87%, underperforming its sector by 1.11%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex opened positively with a 142.71-point gain but later slipped by 289.74 points to close at 82,129.04, down 0.18%. The Sensex remains 4.91% below its 52-week high of 86,159.02, with its 50-day moving average still above the 200-day moving average, indicating a mixed technical picture.
Over the past year, Shalimar Wires Industries Ltd has recorded a negative return of 12.38%, significantly lagging behind the Sensex’s positive 10.01% gain and the BSE500’s 14.04% return. This divergence highlights the stock’s relative weakness within the market and the Garments & Apparels sector.
Financial Metrics and Fundamental Assessment
The company’s financial profile reveals several areas of concern that have contributed to the stock’s subdued performance. Shalimar Wires is classified as a high-debt company, with an average debt-to-equity ratio of 2.87 times over recent periods. This elevated leverage level places additional pressure on the company’s financial flexibility and risk profile.
Profitability metrics further underline challenges, with an average return on equity (ROE) of just 2.81%, indicating limited profitability generated from shareholders’ funds. Despite this, the company has demonstrated some positive trends in recent quarters, reporting a higher profit after tax (PAT) of Rs.2.49 crores over the latest six months and a reduced debt-to-equity ratio of 2.31 times at half-yearly results.
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Shareholding and Market Sentiment
Another factor influencing the stock’s downward trajectory is the high proportion of promoter shares pledged, which stands at 45.03%. In volatile or declining markets, such a high level of pledged shares can exert additional selling pressure, as margin calls or deleveraging by promoters may lead to further stock price declines.
Despite these pressures, the company’s cash and cash equivalents have reached a peak of Rs.12.16 crores at the half-year mark, providing some liquidity cushion. Additionally, the company’s return on capital employed (ROCE) stands at a relatively attractive 12.1%, with an enterprise value to capital employed ratio of 1.3, suggesting that the stock is trading at a discount compared to its peers’ historical valuations.
Valuation and Growth Trends
Shalimar Wires Industries Ltd’s net sales have grown at an annual rate of 10.78% over the past five years, reflecting modest long-term growth. However, this growth rate has not translated into commensurate profitability or market performance. The company’s PEG ratio is currently zero, which is indicative of the disconnect between earnings growth and stock price appreciation.
While the stock’s valuation metrics suggest it is trading at a discount relative to sector peers, the company’s overall Mojo Score remains low at 32.0, with a Mojo Grade of Sell as of 23 Feb 2026, downgraded from a previous Strong Sell rating. The market capitalisation grade is rated at 4, reflecting its micro-cap status within the Garments & Apparels sector.
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Summary of Key Financial Indicators
To summarise, Shalimar Wires Industries Ltd’s key financial indicators as of the latest reporting period include:
- New 52-week low price: Rs.17.5
- 52-week high price: Rs.25.75
- Debt-to-equity ratio (average): 2.87 times
- Debt-to-equity ratio (half-year): 2.31 times
- Return on equity (average): 2.81%
- Return on capital employed: 12.1%
- Profit after tax (latest six months): Rs.2.49 crores
- Cash and cash equivalents (half-year): Rs.12.16 crores
- Mojo Score: 32.0 (Sell)
- Promoter shares pledged: 45.03%
Market Position and Sectoral Context
Operating within the Garments & Apparels industry, Shalimar Wires Industries Ltd faces competitive pressures and sectoral headwinds that have contributed to its stock’s subdued performance. The company’s market capitalisation grade of 4 places it in the micro-cap category, which often entails higher volatility and sensitivity to market movements.
While the Sensex and broader market indices have shown resilience, Shalimar Wires’ relative underperformance highlights the challenges faced by smaller companies in maintaining investor confidence and achieving sustained growth.
Conclusion
Shalimar Wires Industries Ltd’s fall to a 52-week low of Rs.17.5 reflects a combination of high leverage, modest profitability, significant promoter share pledging, and relative underperformance against market benchmarks. Despite some positive financial developments in recent quarters, the stock continues to trade below key moving averages and remains rated as a Sell by MarketsMOJO with a Mojo Score of 32.0. The company’s valuation metrics indicate a discount relative to peers, but the overall market sentiment and financial profile have contributed to the current price level.
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