Stock Price Movement and Market Context
The stock touched an intraday low of Rs.23, representing a 6.16% drop on the day and underperforming its sector by 6.81%. This decline comes despite the broader market showing resilience, with the Sensex trading positively at 85,308.79 points, up 0.1% and nearing its 52-week high of 86,159.02. The Sensex’s bullish momentum is supported by mega-cap stocks and favourable moving average trends, including the 50-day moving average trading above the 200-day moving average.
In contrast, Shree Steel Wire Ropes Ltd is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward pressure on the stock price over multiple time horizons.
Performance Over the Past Year
Over the last 12 months, the stock has delivered a negative return of 42.50%, significantly lagging behind the Sensex’s positive 8.63% gain. The stock’s 52-week high was Rs.43, highlighting the extent of the decline from its peak. This underperformance extends beyond the one-year timeframe, with the stock also trailing the BSE500 index over the last three years, one year, and three months.
Financial Health and Profitability Indicators
Shree Steel Wire Ropes Ltd’s financial metrics reveal ongoing challenges. The company reported operating losses, contributing to a weak long-term fundamental strength assessment. Its ability to service debt remains constrained, with an average EBIT to interest ratio of just 0.16, indicating limited earnings before interest and taxes relative to interest obligations.
Profitability metrics further underscore the difficulties faced by the company. The average return on equity (ROE) stands at a modest 2.21%, reflecting low profitability generated per unit of shareholders’ funds. Quarterly results for September 2025 showed a PBDIT (profit before depreciation, interest, and taxes) of negative Rs.0.28 crore and an EPS (earnings per share) of negative Rs.0.88, both representing the lowest levels recorded in recent periods.
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Valuation and Risk Profile
The stock is currently trading at levels considered risky relative to its historical valuations. Over the past year, profits have declined by 71%, compounding the negative return of 42.50% generated by the stock. This combination of falling earnings and share price depreciation has contributed to the company’s downgrade to a Strong Sell rating, with a Mojo Score of 12.0 as of 21 January 2025, a decline from its previous Sell grade.
Market capitalisation metrics also reflect the company’s challenges, with a Market Cap Grade of 4, indicating a relatively small market capitalisation compared to peers in the sector. The majority of shareholders are non-institutional, which may influence liquidity and trading dynamics.
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Sector and Industry Context
Operating within the Iron & Steel Products sector, Shree Steel Wire Ropes Ltd faces a competitive environment where market dynamics and cost pressures can significantly impact financial outcomes. While the broader sector has seen mixed performance, the company’s stock has notably lagged behind sector averages and benchmark indices.
Despite the Sensex’s positive trajectory and the sector’s relative stability, the stock’s persistent decline and weak financial indicators highlight the challenges specific to Shree Steel Wire Ropes Ltd.
Summary of Key Metrics
To summarise, the stock’s key data points as of 1 January 2026 include:
- New 52-week low price: Rs.23
- Day’s decline: -6.16%
- One-year return: -42.50%
- Quarterly PBDIT: -Rs.0.28 crore
- Quarterly EPS: -Rs.0.88
- Mojo Score: 12.0 (Strong Sell)
- Market Cap Grade: 4
- EBIT to Interest ratio (average): 0.16
- Return on Equity (average): 2.21%
The stock’s performance and financial profile reflect a period of sustained pressure, with valuation and profitability metrics underscoring the challenges faced by the company in the current market environment.
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