Stock Price Movement and Market Context
On 30 Jan 2026, Shalimar Wires Industries Ltd’s share price declined by 2.93%, closing at Rs.18, the lowest level in the past year. This new low comes after two consecutive days of losses, with the stock delivering a cumulative return of -5.05% over this period. The current price is substantially below its 52-week high of Rs.25.75, representing a decline of approximately 30.1% from that peak.
The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained bearish trend. In comparison, the Metal - Non Ferrous sector, to which the company is related, has experienced a sharper decline of -8.39% recently, indicating sector-wide headwinds.
Meanwhile, the broader market has shown mixed signals. The Sensex opened lower at 81,947.31, down 0.75%, and was trading at 82,149.36 by midday, a 0.51% loss. Despite this, the Sensex remains within 4.88% of its 52-week high of 86,159.02. The index is currently below its 50-day moving average, though the 50DMA remains above the 200DMA, suggesting some underlying resilience in the broader market.
Financial Performance and Fundamental Metrics
Over the last year, Shalimar Wires Industries Ltd has delivered a total return of -21.77%, underperforming the Sensex, which gained 7.01% over the same period. The company’s long-term growth has been modest, with net sales increasing at an annualised rate of 9.81% over the past five years.
Financial ratios highlight some areas of concern. The average debt-to-equity ratio stands at 2.87 times, indicating a relatively high leverage position. This level of indebtedness is a key factor in the company’s current Mojo Grade of Sell, downgraded from Hold on 27 Jan 2026. The Mojo Score is 40.0, reflecting weak long-term fundamental strength.
Profitability metrics also remain subdued. The average return on equity (ROE) is 2.81%, signalling limited profitability generated from shareholders’ funds. Additionally, 45.03% of promoter shares are pledged, which can exert additional downward pressure on the stock price during market declines.
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Recent Quarterly Results and Valuation Metrics
Despite the stock’s decline, Shalimar Wires Industries Ltd reported very positive results in the September 2025 quarter. Net profit grew by 46.53%, with the company declaring positive results for two consecutive quarters. The debt-to-equity ratio for the half-year period improved to 2.31 times, the lowest in recent times.
The operating profit to interest ratio for the quarter reached 2.27 times, indicating improved coverage of interest expenses. The company’s profit after tax (PAT) for the quarter was Rs.1.48 crore, the highest recorded in recent quarters.
Return on capital employed (ROCE) stands at 12.1%, which is considered very attractive. The enterprise value to capital employed ratio is 1.4, suggesting the stock is trading at a discount relative to its peers’ historical valuations. The price/earnings to growth (PEG) ratio is 0.1, reflecting the relationship between the company’s earnings growth and its valuation.
Comparative Performance and Market Position
Shalimar Wires Industries Ltd has underperformed not only the Sensex but also the BSE500 index over the last three years, one year, and three months. This below-par performance has contributed to the current market sentiment and the stock’s decline to its 52-week low.
The company operates within the Garments & Apparels industry and sector, which has seen mixed performance in recent months. While the broader market shows signs of recovery, Shalimar Wires remains under pressure due to its financial structure and historical returns.
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Summary of Key Concerns
The stock’s fall to Rs.18, its lowest in 52 weeks, is underpinned by several factors. High leverage with an average debt-to-equity ratio near 3 times, low profitability metrics, and a significant portion of promoter shares pledged have all contributed to the downward pressure. The company’s long-term growth rate remains modest, and its returns have lagged behind major indices and sector benchmarks.
While recent quarterly results have shown improvement in profitability and debt metrics, these have yet to translate into sustained positive momentum in the share price. The stock’s valuation metrics indicate it is trading at a discount relative to peers, but this has not prevented the recent decline.
Overall, Shalimar Wires Industries Ltd’s current market position reflects a combination of financial challenges and broader sector pressures, resulting in the stock’s new 52-week low.
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