Stock Price Movement and Market Context
On 3 February 2026, Shree Steel Wire Ropes Ltd’s stock price fell by 3.98% to close at Rs.18, setting a new 52-week low. This decline came after two consecutive days of gains, signalling a reversal in short-term momentum. The stock underperformed its sector, Iron & Steel Products, by 6.98% on the day, while the broader Steel/Sponge Iron/Pig Iron sector advanced by 3%. In comparison, the Nifty index closed at 25,727.55, up 2.55%, and remains just 2.51% below its 52-week high of 26,373.20.
Shree Steel Wire Ropes Ltd’s share price has halved over the past year, registering a negative return of 51.13%, whereas the Sensex gained 8.49% during the same period. The stock’s 52-week high was Rs.40, highlighting the extent of the decline. Additionally, the stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating sustained downward pressure.
Financial Performance and Fundamental Assessment
The company’s financial health remains under strain, as reflected in its recent flat results for the quarter ended December 2025. Earnings before interest, taxes, depreciation and amortisation (EBITDA) have been negative, contributing to a challenging profitability profile. Over the past year, profits have contracted by 86%, further exacerbating concerns about the company’s earnings capacity.
Shree Steel Wire Ropes Ltd’s ability to service its debt is notably weak, with an average EBIT to interest coverage ratio of just 0.02. This ratio indicates that operating earnings are insufficient to cover interest expenses, raising questions about financial sustainability. The company’s return on equity (ROE) averages 2.21%, signalling low profitability relative to shareholders’ funds.
The company’s long-term fundamental strength is assessed as weak, contributing to its current Mojo Grade of Strong Sell, upgraded from Sell on 21 January 2025. The Mojo Score stands at 12.0, reflecting the stock’s elevated risk profile. Market capitalisation grade is low at 4, consistent with its micro-cap status within the Iron & Steel Products sector.
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Trend Analysis and Relative Performance
Over the last three years, Shree Steel Wire Ropes Ltd has consistently underperformed the BSE500 benchmark index. The stock’s negative returns and deteriorating profitability metrics have contributed to its weak trend assessment. Despite intermittent short-term rallies, the overall trend remains downward, with the stock failing to sustain gains above key moving averages.
In contrast, the broader market segments have shown resilience. Mid-cap stocks, represented by the Nifty Midcap 100, have led gains with a 2.84% rise on the day. The Nifty’s 50-day moving average remains above its 200-day moving average, suggesting a generally positive medium-term market trend, which Shree Steel Wire Ropes Ltd has not mirrored.
Shareholding Pattern and Market Position
The majority of Shree Steel Wire Ropes Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company operates within the Iron & Steel Products sector, which has shown mixed performance, with some peers gaining ground while Shree Steel Wire Ropes Ltd continues to face headwinds.
Given the company’s current financial metrics and market performance, the stock is classified as risky relative to its historical valuation averages. The combination of negative EBITDA, weak debt servicing ability, and low return on equity contribute to this assessment.
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Summary of Key Metrics
To summarise, Shree Steel Wire Ropes Ltd’s key financial and market metrics as of early February 2026 are as follows:
- Current Price: Rs.18 (52-week low)
- 52-Week High: Rs.40
- One-Year Return: -51.13%
- Sector Performance (Steel/Sponge Iron/Pig Iron): +3% (day)
- EBIT to Interest Coverage Ratio (avg): 0.02
- Return on Equity (avg): 2.21%
- Mojo Score: 12.0
- Mojo Grade: Strong Sell (upgraded from Sell on 21 Jan 2025)
- Market Cap Grade: 4
The stock’s performance and fundamental indicators highlight the challenges faced by Shree Steel Wire Ropes Ltd in maintaining profitability and market confidence. While the broader market and sector have shown positive momentum, the company’s share price and financial ratios reflect ongoing pressures.
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