Stock Price Movement and Market Context
On 21 Nov 2025, Shiva Cement’s share price touched Rs.23.75, the lowest point in the last 52 weeks. This follows a period of sustained downward pressure, with the stock trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Despite a slight gain today that ended a four-day losing streak, the stock remains well below its 52-week high of Rs.46, representing a near 48.4% difference.
In comparison, the Sensex opened lower at 85,347.40 points, down 285.28 points or 0.33%, and was trading at 85,455.89 points (-0.21%) during the same session. The Sensex remains close to its 52-week high of 85,801.70, just 0.4% away, and is supported by bullish moving averages with the 50-day DMA above the 200-day DMA. This contrast highlights Shiva Cement’s relative underperformance within the broader market environment.
Financial Performance and Long-Term Trends
Over the past year, Shiva Cement’s stock has recorded a return of approximately -44.91%, while the Sensex has shown a positive return of 10.76%. This divergence underscores the challenges faced by the company in maintaining shareholder value. The stock has also underperformed the BSE500 index consistently over the last three annual periods, reflecting persistent difficulties in matching sector and market growth.
Examining the company’s financial metrics reveals a complex picture. Net sales have grown at an annual rate of 64.04% over the last five years, indicating some expansion in revenue. However, operating profit has remained stagnant at 0% growth during the same period, suggesting limited improvement in profitability. Furthermore, profits have declined by 51% over the past year, contributing to the stock’s subdued performance.
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Debt Levels and Risk Factors
One of the most notable concerns for Shiva Cement is its high leverage. The company’s debt-to-equity ratio stands at an elevated 39.12 times, indicating a substantial reliance on borrowed funds relative to shareholder equity. This level of indebtedness points to a weak long-term fundamental strength and increases financial risk, especially in a capital-intensive industry such as cement manufacturing.
Additionally, the company’s EBITDA has been negative, which adds to the risk profile. The stock is considered risky when compared to its historical average valuations, reflecting market apprehension about its financial stability and earnings capacity. Domestic mutual funds hold no stake in Shiva Cement, which may reflect a cautious stance given the company’s financial metrics and market performance.
Recent Quarterly Results and Operational Highlights
Despite the challenges, Shiva Cement reported some positive figures in its latest quarterly results. The operating profit to interest ratio reached 0.13 times, the highest recorded, indicating some improvement in the company’s ability to cover interest expenses from operating earnings. Net sales for the latest six months stood at Rs.187.72 crores, showing growth of 27.58% compared to previous periods.
Furthermore, the company’s PBDIT (Profit Before Depreciation, Interest, and Taxes) for the quarter was Rs.4.01 crores, also the highest in recent times. These figures suggest pockets of operational resilience amid broader financial pressures.
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Sector and Industry Positioning
Shiva Cement operates within the Cement & Cement Products sector, a segment that has seen varied performance across companies depending on their financial health and market positioning. The company’s market capitalisation grade is relatively low at 4, reflecting its smaller size and limited market presence compared to larger peers.
The stock’s day change was marginally negative at -0.13%, though it outperformed the sector by 0.27% on the day of the new low. This slight outperformance may indicate some short-term price stabilisation, but the overall trend remains subdued.
Summary of Key Metrics
To summarise, Shiva Cement’s stock price at Rs.23.75 represents a 52-week low, with a year-on-year return of approximately -44.91%. The company’s financial profile is characterised by high debt levels, stagnant operating profit growth, and a negative EBITDA. While recent quarterly results show some improvement in sales and operating profit to interest coverage, these have not yet translated into sustained stock price recovery.
The broader market context, with the Sensex trading near its 52-week high and supported by bullish moving averages, contrasts with Shiva Cement’s ongoing challenges. This divergence highlights the company’s relative underperformance within the Cement & Cement Products sector and the wider market.
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