Stock Price Movement and Market Context
On 26 Feb 2026, Shekhawati Industries Ltd recorded its lowest price in the past year at Rs.12.19. This new low comes after a period of sustained price erosion, with the stock having declined by 49.29% over the last 12 months. Despite outperforming its sector by 4.84% on the day, the stock remains well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.
In contrast, the broader market has shown resilience. The Sensex opened 142.71 points higher and was trading at 82,462.25, up 0.23% on the day. The Sensex is currently 4.48% shy of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. However, Shekhawati Industries has underperformed significantly relative to the Sensex, which has delivered a positive return of 10.52% over the same period.
Financial Performance and Key Metrics
The company’s recent financial disclosures reveal a challenging environment. Shekhawati Industries reported a sharp decline in net sales, down 28.67% year-on-year, with the latest six-month net sales at Rs.5.14 crores, reflecting a steep contraction of 84.50%. Profitability metrics have also deteriorated markedly. The Profit Before Tax excluding other income (PBT less OI) for the latest quarter stood at a loss of Rs.-0.56 crore, a decline of 154.1% compared to the average of the previous four quarters. Similarly, the net profit after tax (PAT) for the quarter was a loss of Rs.-0.51 crore, down 133.8% relative to the prior four-quarter average.
This marks the fifth consecutive quarter of negative results, underscoring the company’s ongoing difficulties in reversing its financial trajectory. The company’s debt servicing capacity remains constrained, with a Debt to EBITDA ratio of -1.00 times, indicating a weak ability to manage its financial obligations effectively.
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Valuation and Shareholder Structure
Despite the weak financial performance, Shekhawati Industries exhibits some attractive valuation metrics. The company’s Return on Equity (ROE) stands at 22.4%, which is relatively robust. Additionally, the stock trades at a Price to Book Value ratio of 2.4, indicating a premium valuation compared to its peers’ historical averages. This premium suggests that the market may be pricing in certain expectations despite the recent setbacks.
The majority ownership of the company remains with promoters, which often implies a stable controlling interest. However, the company’s market capitalisation grade is low at 4, reflecting its micro-cap status and limited market liquidity.
Sector and Industry Comparison
Within the Garments & Apparels sector, Shekhawati Industries has lagged behind its peers and the broader market. While the BSE500 index has generated returns of 14.50% over the past year, the stock’s negative return of 49.29% highlights its relative underperformance. The stock’s 52-week high was Rs.26.89, more than double the current price, illustrating the extent of the decline.
Market participants will note that the company’s Mojo Score has deteriorated to 12.0, with a Mojo Grade downgraded from Sell to Strong Sell as of 20 Mar 2025. This reflects a reassessment of the company’s fundamentals and risk profile by analytical frameworks.
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Recent Price Trend and Market Behaviour
After four consecutive days of decline, the stock showed a modest gain today, indicating a potential short-term pause in the downward trend. However, the stock remains significantly below all major moving averages, which typically act as resistance levels in technical analysis. This persistent weakness in price action reflects the ongoing challenges faced by the company.
In comparison, the Sensex’s 50-day moving average remains above its 200-day moving average, a technical indicator often interpreted as a bullish signal for the broader market. This divergence highlights the contrasting fortunes of Shekhawati Industries relative to the overall market environment.
Summary of Key Financial Indicators
To summarise the company’s recent financial performance:
- Net sales declined by 28.67% year-on-year.
- Latest six-month net sales contracted by 84.50% to Rs.5.14 crores.
- PBT less other income for the latest quarter was a loss of Rs.-0.56 crore, down 154.1% versus the previous four-quarter average.
- Quarterly PAT was a loss of Rs.-0.51 crore, down 133.8% compared to the prior four-quarter average.
- Debt to EBITDA ratio stands at -1.00 times, indicating financial strain.
- Mojo Grade downgraded to Strong Sell with a score of 12.0.
Conclusion
Shekhawati Industries Ltd’s fall to a 52-week low of Rs.12.19 reflects a combination of declining sales, sustained losses, and financial stress. While the stock showed a slight recovery today after several days of decline, it remains under pressure and continues to trade below all key moving averages. The company’s valuation metrics and promoter ownership provide some context, but the overall financial performance and market positioning remain subdued relative to peers and the broader market.
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