Shiva Cement Ltd Falls to 52-Week Low Amidst Continued Downtrend

Stock Performance and Market Context

On 24 Feb 2026, Shiva Cement Ltd’s share price closed at Rs.18.2, down 1.76% on the day, underperforming the Cement & Cement Products sector by 3.01%. This marks the tenth consecutive trading day of losses, during which the stock has declined by 12.08%. The current price is significantly below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bearish momentum.

In contrast, the broader market has shown relative resilience. The Sensex, despite a sharp fall of 624.86 points (-1.04%) to 82,427.68, remains within 4.53% of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a longer-term positive trend that Shiva Cement has not mirrored.

Over the past year, Shiva Cement Ltd’s stock has delivered a negative return of 43.72%, starkly contrasting with the Sensex’s positive 10.69% gain over the same period. The stock’s 52-week high was Rs.42.74, underscoring the extent of the decline.

Financial and Fundamental Analysis

Shiva Cement Ltd’s financial profile continues to reflect significant challenges. The company carries a high debt burden, with a debt-to-equity ratio of 39.12 times, indicating a weak long-term fundamental strength. This level of leverage is considerably elevated compared to industry norms and raises concerns about financial stability.

Over the last five years, the company’s net sales have grown at an annualised rate of 70.65%, which is a positive indicator of top-line expansion. However, operating profit growth has stagnated at 0% over the same period, highlighting difficulties in translating sales growth into profitability.

The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) have been negative, signalling operational strain. Profitability has deteriorated, with profits falling by 46.9% over the past year. This decline in earnings has contributed to the stock’s riskier valuation profile relative to its historical averages.

Despite its size, Shiva Cement Ltd holds no stake from domestic mutual funds, which typically conduct thorough research and due diligence. This absence may reflect a cautious stance from institutional investors regarding the company’s current valuation and business outlook.

Relative Performance and Market Position

The stock has consistently underperformed the BSE500 index over the last three years, reinforcing a pattern of relative weakness. The 43.72% negative return in the past year is a continuation of this trend, underscoring the stock’s challenges in keeping pace with broader market gains.

In the context of the Cement & Cement Products sector, Shiva Cement Ltd’s underperformance is notable. The sector has generally maintained steadier valuations, while Shiva Cement’s share price has declined sharply, reflecting company-specific pressures.

Recent Quarterly Results

In the December 2025 quarter, Shiva Cement Ltd reported its highest quarterly net sales at Rs.126.09 crores. While this top-line achievement is a positive development, it has not yet translated into improved profitability or stock performance. The disconnect between sales growth and earnings remains a key concern for the company’s financial health.

Mojo Score and Ratings

Shiva Cement Ltd currently holds a Mojo Score of 17.0, categorised as a Strong Sell. This rating was upgraded from Sell on 25 Aug 2025, reflecting a further deterioration in the company’s financial and market metrics. The market capitalisation grade stands at 4, indicating a relatively low valuation compared to peers.

The Strong Sell rating is driven primarily by the company’s high leverage, negative EBITDA, and consistent underperformance relative to benchmarks. These factors collectively contribute to the cautious stance reflected in the Mojo grading system.

Summary of Key Metrics

To summarise, Shiva Cement Ltd’s stock has reached a new 52-week low of Rs.18.2 after a sustained period of decline. The company’s financial profile is characterised by high debt, stagnant operating profit growth, and negative earnings trends. Despite recent sales growth, profitability challenges persist, and the stock continues to underperform both its sector and the broader market indices.

Market conditions have been mixed, with the Sensex showing resilience despite recent volatility, while Shiva Cement’s share price has weakened considerably. The absence of domestic mutual fund holdings further highlights the cautious sentiment surrounding the stock.

Overall, the data points to a complex situation for Shiva Cement Ltd, with multiple factors contributing to its current valuation and market performance.

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