Recent Price Movement and Market Context
The stock’s current price of Rs.18 stands well below its 52-week high of Rs.41.09, indicating a substantial contraction in market valuation over the past year. This decline contrasts sharply with the broader market, where the Sensex opened lower at 85,347.40 points, down by 285.28 points or 0.33%, but remains close to its own 52-week high of 85,801.70, just 0.5% away. The Sensex is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish trend in the broader market.
In contrast, Shekhawati Industries is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the stock’s sustained weakness relative to market momentum.
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Financial Performance and Key Metrics
Shekhawati Industries’ financial data over recent periods reveals a challenging environment. The company’s net sales for the latest six months stand at Rs.6.00 crores, reflecting a contraction of 82.55% compared to previous periods. Profit after tax (PAT) for the nine months is Rs.4.52 crores, showing a decline of 64.87%. These figures highlight a significant reduction in revenue generation and profitability.
The inventory turnover ratio for the half-year is notably low at 0.21 times, indicating slower movement of stock relative to sales. This metric is critical in the garments and apparels industry, where inventory management impacts working capital and operational efficiency.
Long-Term Growth and Debt Position
Over the last five years, the company’s net sales have exhibited a compound annual growth rate (CAGR) of -17.38%, pointing to a contraction in top-line performance. Additionally, the company’s ability to service debt appears constrained, with a Debt to EBITDA ratio of -1.00 times. This ratio suggests that earnings before interest, taxes, depreciation, and amortisation are insufficient relative to debt levels, which may affect financial flexibility.
Shekhawati Industries has reported negative results for four consecutive quarters, underscoring persistent challenges in maintaining profitability.
Comparative Market Performance
In the last year, Shekhawati Industries’ stock has generated a return of -56.05%, a stark contrast to the Sensex’s positive return of 10.65% and the BSE500’s 8.93% gain over the same period. This divergence highlights the stock’s underperformance relative to both the benchmark index and broader market segments.
Despite this, the company’s return on equity (ROE) remains at 33.7%, which is considered attractive. The stock is trading at a price-to-book value of 3.5, suggesting a valuation discount compared to its peers’ historical averages. However, profits have declined by 60.4% over the past year, reflecting the financial pressures faced by the company.
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Shareholding and Sectoral Context
Shekhawati Industries operates within the Garments & Apparels sector, a segment that often faces cyclical demand patterns and inventory management complexities. The majority shareholding is held by promoters, which may influence strategic decisions and capital allocation.
The stock’s recent performance and valuation metrics reflect a combination of sectoral pressures and company-specific factors that have contributed to its current price level.
Summary of Key Price and Performance Indicators
To summarise, Shekhawati Industries has reached a 52-week low of Rs.18, following a three-day losing streak with a cumulative return of -7.64%. The stock trades below all major moving averages, contrasting with the broader market’s relatively stable position near its 52-week high. Financial indicators reveal contraction in sales and profits, alongside a low inventory turnover ratio and a challenging debt servicing capacity. The stock’s year-on-year return of -56.05% significantly trails the Sensex and BSE500 indices.
These factors collectively illustrate the current state of Shekhawati Industries’ market and financial standing without projecting future developments or investment advice.
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