Shekhawati Industries Ltd Falls to 52-Week Low of Rs.17.2 Amidst Continued Downtrend

Recent Price Movement and Market Context

Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — Shekhawati Industries Ltd’s current price level reflects sustained selling pressure. The stock’s 52-week high was Rs.31.59, indicating a steep decline of approximately 45.5% from that peak.

Meanwhile, the broader market has experienced its own challenges. The Sensex opened flat but ended the day down by 530.79 points, or 0.73%, closing at 82,963.70. This marks a third consecutive weekly decline for the index, which has lost 3.26% over the past three weeks. Despite this, the Sensex remains within 3.85% of its 52-week high of 86,159.02, suggesting a more resilient performance relative to Shekhawati Industries Ltd.

Over the last year, Shekhawati Industries Ltd has underperformed significantly, delivering a negative return of 43.74%, in stark contrast to the Sensex’s positive 8.28% gain and the BSE500’s 7.42% rise. This divergence highlights the stock’s relative weakness within the market and its sector.

Financial Performance and Fundamental Metrics

Shekhawati Industries Ltd’s financial indicators reveal a challenging environment. The company has reported negative results for four consecutive quarters, with net sales for the latest six months declining sharply by 82.55% to Rs.6.00 crores. Profit after tax (PAT) for the nine-month period has also contracted by 64.87%, standing at Rs.4.52 crores.

The inventory turnover ratio for the half-year is notably low at 0.21 times, indicating slower movement of stock relative to peers. This metric often signals potential inefficiencies in inventory management or subdued demand conditions.

Long-term growth trends have also been unfavourable. The company’s net sales have shrunk at a compound annual growth rate (CAGR) of -17.38% over the past five years. Additionally, the debt servicing capacity is constrained, with a Debt to EBITDA ratio of -1.00 times, reflecting elevated leverage concerns.

Despite these headwinds, the company’s return on equity (ROE) remains relatively high at 33.7%, which contributes to a valuation that appears attractive on a price-to-book basis of 3.4. This valuation is discounted compared to the average historical valuations of its peers in the Garments & Apparels sector.

Market Position and Shareholding

Shekhawati Industries Ltd operates within the Garments & Apparels industry and sector, which has seen mixed performance amid broader economic conditions. The company’s majority shareholding rests with promoters, indicating concentrated ownership.

Its Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 20 Mar 2025. The market capitalisation grade is rated at 4, reflecting its micro-cap status and associated liquidity considerations.

Comparative Sector and Market Analysis

While Shekhawati Industries Ltd has struggled, the broader Garments & Apparels sector has experienced varied performance, with some peers maintaining steadier growth trajectories. The stock’s discount to peer valuations suggests a divergence in market perception, likely influenced by its recent financial results and growth metrics.

The Sensex’s current technical positioning, trading below its 50-day moving average but with the 50DMA above the 200DMA, indicates a mixed medium-term outlook for the market. Shekhawati Industries Ltd’s sustained trading below all major moving averages contrasts with this, underscoring its relative weakness.

Over the past year, the company’s profits have declined by 60.4%, a steeper fall than its share price, which has dropped 43.74%. This disparity highlights the challenges in earnings quality and sustainability.

Summary of Key Metrics

To encapsulate, Shekhawati Industries Ltd’s key financial and market metrics are as follows:

• New 52-week low price: Rs.17.2


• 52-week high price: Rs.31.59


• One-year stock return: -43.74%


• Sensex one-year return: +8.28%


• Net sales growth (5-year CAGR): -17.38%


• Debt to EBITDA ratio: -1.00 times


• Inventory turnover ratio (HY): 0.21 times


• Return on equity (ROE): 33.7%


• Price to book value: 3.4


• Mojo Score: 17.0 (Strong Sell)

These figures collectively illustrate the stock’s current valuation and performance challenges within the context of its sector and the broader market environment.

Unlock special upgrade rates for a limited period. Start Saving Now →