Shiva Cement Ltd Gains 2.67%: 4 Key Factors Driving the Week’s Mixed Momentum

2 February: Sharp Decline to 52-Week Low Amidst Persistent Weakness

Shiva Cement Ltd’s stock opened the week under pressure, falling to a 52-week low of Rs.19.01 on 2 February 2026. This marked a continuation of the company’s prolonged underperformance, with the share price down nearly 55.5% from its 52-week high of Rs.42.74. The day’s decline of 2.67% contrasted with the Sensex’s 1.03% fall, highlighting company-specific challenges.

Fundamental concerns remain paramount, with a high debt-to-equity ratio of 39.12 times and stagnant operating profit growth over five years. Despite a 70.65% CAGR in net sales, profitability has deteriorated, with profits down 46.9% over the past year. The stock’s trading below all key moving averages further signals sustained downward momentum.

Technical indicators on this day showed a subtle shift from outright bearishness to a mildly bearish stance, with weekly MACD turning mildly bullish but monthly MACD remaining bearish. The Relative Strength Index (RSI) was neutral, indicating indecision among investors. Bollinger Bands suggested moderate volatility but persistent downward pressure.

3 February: New 52-Week Low and Intensified Downtrend

The downtrend deepened on 3 February as Shiva Cement’s stock touched a fresh 52-week low of Rs.18.81, marking a 3.69% decline from the previous close. This move came despite the Sensex’s resilience, which closed up 2.63% that day. The stock’s underperformance was stark, with a 48.15% loss over the past year compared to the Sensex’s 8.76% gain.

Technical momentum deteriorated further, shifting from mildly bearish to outright bearish. The MACD indicator was bearish on both weekly and monthly timeframes, while Bollinger Bands confirmed persistent selling pressure. Daily moving averages turned decisively bearish, with the stock trading below its 50-day and 200-day averages. The RSI remained neutral, suggesting no immediate oversold bounce.

Fundamentally, the company’s elevated leverage and stagnant profitability continue to weigh heavily. The absence of domestic mutual fund holdings underscores the cautious stance among institutional investors. Despite reporting its highest quarterly net sales of Rs.126.09 crores in December 2025, profitability challenges persist.

4–5 February: Recovery Attempts Amid Mixed Technical Signals

Following the lows, Shiva Cement’s stock staged a recovery on 4 and 5 February, rising by 2.90% and 2.67% respectively, closing at Rs.20.24 and Rs.20.78. These gains outpaced the Sensex’s more modest movements of +0.37% and -0.53% on the same days, signalling short-term buying interest.

Technical indicators during this period showed some improvement. The weekly MACD and KST indicators turned mildly bullish, hinting at potential momentum building. However, monthly indicators remained bearish, and the stock continued to trade below key moving averages, limiting the strength of the rally. Bollinger Bands suggested the stock was near the lower range of its price channel, providing some technical support.

Volume remained moderate, with 145,645 shares traded on 4 February and 157,071 on 5 February, indicating cautious participation. Despite these short-term gains, the overall technical and fundamental outlook remained cautious.

6 February: Week Closes with Slight Pullback but Positive Weekly Gain

On the final trading day of the week, Shiva Cement’s stock retreated by 1.92% to close at Rs.20.38, slightly below the previous day’s high of Rs.20.78. The Sensex closed marginally higher by 0.10%, ending at 36,730.20. Despite the day’s pullback, the stock posted a weekly gain of 2.67%, outperforming the Sensex’s 1.51% rise.

Technical momentum remains mixed. While short-term indicators showed some bullish signs earlier in the week, the dominant monthly bearish signals and the stock’s position below key moving averages caution against sustained rallies. The neutral RSI and lack of clear trend confirmation from Dow Theory suggest ongoing indecision among investors.

Fundamentally, the company’s high leverage and weak profitability metrics continue to pose risks. The Mojo Score remains at 17.0 with a Strong Sell grade, reflecting the deteriorated outlook. The stock’s market capitalisation grade of 4 indicates limited liquidity and market interest relative to peers.

Key Takeaways

Positive Signals: Shiva Cement’s 2.67% weekly gain outpaced the Sensex’s 1.51%, supported by short-term technical indicators such as mildly bullish weekly MACD and KST. The stock’s recovery from 52-week lows and improved volume on midweek rallies indicate some buying interest.

Cautionary Signals: The company’s fundamentals remain challenged, with a high debt-to-equity ratio of 39.12 times and a 46.9% profit decline over the past year. The stock trades below all major moving averages, and monthly technical indicators remain bearish. The Mojo Score of 17.0 and Strong Sell rating reflect ongoing risks. Absence of domestic mutual fund holdings and persistent underperformance relative to sector and Sensex highlight investor caution.

Sector Context: Operating in the Cement & Cement Products sector, Shiva Cement faces subdued demand and pricing pressures. The sector’s mixed performance and capital-intensive nature add to the company’s challenges in reversing its downtrend.

Conclusion

Shiva Cement Ltd’s week was characterised by volatility and mixed signals. The stock’s recovery from fresh 52-week lows to close with a modest weekly gain of 2.67% demonstrates some resilience amid a challenging environment. However, the company’s elevated leverage, stagnant profitability, and bearish technical momentum temper optimism. The Strong Sell Mojo Grade and lack of institutional support underscore the need for caution. Investors should closely monitor both fundamental developments and technical trends before considering exposure to this stock, as downside risks remain significant despite short-term rallies.

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