Intraday Price Movement and Volatility
The stock opened with a gap down of 7.38% and touched an intraday low of Rs.52.6, representing a 17.98% drop from previous levels. This sharp decline was accompanied by high volatility, with an intraday weighted average price volatility of 7.14%. Shiva Mills underperformed its sector by 1.32% during the trading session, indicating pressure relative to its peers.
Technical Indicators and Moving Averages
Currently, Shiva Mills is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a sustained downward momentum over multiple time horizons, reflecting the stock’s struggle to regain upward traction.
Market Context and Benchmark Comparison
The broader market, represented by the Sensex, experienced a decline of 0.42% today, closing at 84,784.84 points after a flat opening. Despite this, the Sensex remains 1.62% below its 52-week high of 86,159.02 and is trading above its 50-day and 200-day moving averages, signalling a generally bullish trend in the benchmark index. In contrast, Shiva Mills’ performance over the past year has been notably weaker, with a return of -35.43% compared to the Sensex’s positive 4.86% return.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Financial Performance and Profitability Trends
Shiva Mills has exhibited a decline in key financial metrics over recent years. Operating profits have shown a compound annual growth rate (CAGR) of -210.36% over the last five years, indicating a contraction in core earnings capacity. The company’s average return on equity stands at 5.64%, reflecting modest profitability relative to shareholders’ funds.
Recent quarterly results reveal further pressures, with net sales reported at Rs.30.44 crores, marking one of the lowest levels in recent periods. Dividend per share (DPS) and dividend payout ratio (DPR) are both at zero, underscoring the absence of shareholder returns through dividends in the latest financial year.
Valuation and Risk Considerations
The stock’s valuation appears elevated relative to its historical averages, contributing to a perception of increased risk. Over the past year, Shiva Mills’ profits have declined by 48%, a factor that has coincided with the stock’s negative return of 35.43%. This underperformance has persisted over multiple years, with the stock consistently lagging behind the BSE500 benchmark in each of the last three annual periods.
Shareholding and Sector Position
Promoters remain the majority shareholders of Shiva Mills, maintaining significant control over the company’s strategic direction. The firm operates within the Garments & Apparels industry, a sector that has experienced varied performance across different companies, with Shiva Mills currently positioned towards the lower end of the performance spectrum.
Is Shiva Mills your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Historical Price Range and Market Capitalisation
The stock’s 52-week high was Rs.115.86, more than double the current low price of Rs.52.6, illustrating the extent of the decline over the past year. The market capitalisation grade assigned to Shiva Mills is moderate, reflecting its size and market presence within the Garments & Apparels sector.
Summary of Recent Market Activity
Today’s trading session saw Shiva Mills underperform both its sector and the broader market indices. The stock’s downward gap at the open and subsequent volatility highlight the challenges faced by the company in regaining investor confidence. While the Sensex maintains a position near its 52-week high and trades above key moving averages, Shiva Mills remains below all major technical benchmarks.
Conclusion
Shiva Mills’ fall to a new 52-week low of Rs.52.6 reflects a continuation of its subdued performance trend, marked by declining profitability, weak sales figures, and technical indicators signalling downward momentum. The stock’s underperformance relative to the Sensex and its sector peers over the past year and beyond underscores the challenges faced by the company in the current market environment.
Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
