Shiva Cement Falls to 52-Week Low of Rs.23.9 Amidst Continued Downtrend

On 18 Nov 2025, Shiva Cement’s share price touched Rs.23.9, the lowest level recorded in the past year. This decline comes after two consecutive days of losses, with the stock registering a cumulative return of -3.47% over this period. The day’s trading saw the stock fall by -2.03%, underperforming the Cement & Cement Products sector by -0.84%. Furthermore, Shiva Cement is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bearish momentum.

Comparatively, the broader market benchmark, the Sensex, opened positively with a gain of 91.42 points but later retreated by -176.85 points to close at 84,865.52, down -0.1%. The Sensex remains close to its 52-week high of 85,290.06, trading approximately 0.5% below this peak. Notably, the Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend in the broader market contrasting with Shiva Cement’s performance.

Over the last year, Shiva Cement’s stock has recorded a return of -39.15%, significantly lagging behind the Sensex’s 9.73% gain over the same period. The stock’s 52-week high was Rs.46, illustrating the extent of the decline to the current low. This persistent underperformance extends beyond the last year, with the stock also trailing the BSE500 index in each of the previous three annual periods.

Financially, Shiva Cement’s long-term fundamentals present concerns. The company’s debt-equity ratio stands at a notably high 39.12 times, indicating a substantial leverage position. This elevated debt level contributes to a weak long-term fundamental strength assessment. Over the past five years, net sales have grown at an annual rate of 64.04%, while operating profit has remained stagnant at 0%, suggesting limited improvement in profitability despite sales growth.

The company’s earnings before interest, depreciation, taxes and amortisation (EBITDA) have shown negative trends, with profits falling by -51% over the past year. This decline in profitability, coupled with high leverage, places the stock in a riskier category relative to its historical valuation averages. The average debt-to-equity ratio is reported at 0 times, which may reflect fluctuations or adjustments in financial structuring.

Domestic mutual funds currently hold no stake in Shiva Cement, a notable point given their capacity for detailed company research. This absence of institutional holding may reflect reservations about the company’s valuation or business prospects at prevailing prices.

Despite these challenges, Shiva Cement reported some positive financial results in the latest quarter ending September 2025. The operating profit to interest ratio reached its highest level at 0.13 times, indicating some improvement in the company’s ability to cover interest expenses from operating profits. Net sales for the latest six months stood at Rs.187.72 crores, growing at a rate of 27.58%. Additionally, the profit before depreciation, interest and taxes (PBDIT) for the quarter was Rs.4.01 crores, marking the highest level recorded in recent periods.

In summary, Shiva Cement’s stock has experienced a notable decline to its 52-week low of Rs.23.9, reflecting a combination of high leverage, subdued profitability, and consistent underperformance relative to market benchmarks. While recent quarterly results show some improvement in sales and operating profit coverage, the stock remains below all major moving averages and continues to face challenges in regaining upward momentum.

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