Shree Steel Wire Ropes Hits 52-Week Low at Rs.23.2 Amidst Weak Financial Indicators

Stock Price Movement and Market Context

On 24 December 2025, Shree Steel Wire Ropes recorded its lowest price in the last 52 weeks at Rs.23.2. Despite this, the stock outperformed its sector by 1.7% on the day, indicating some relative resilience compared to peers. The stock price currently sits above its 5-day and 20-day moving averages but remains below the 50-day, 100-day, and 200-day moving averages, signalling a mixed short- to medium-term technical outlook.

In contrast, the broader market index, Sensex, opened flat and traded slightly lower by 0.14% at 85,408.70 points. The Sensex remains close to its 52-week high of 86,159.02, trading just 0.88% below that peak. Notably, the Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, reflecting a generally bullish trend for the benchmark index.

Financial Performance Over the Past Year

Shree Steel Wire Ropes has experienced a decline of 33.82% in its stock price over the last 12 months, a stark contrast to the Sensex’s positive return of 8.84% during the same period. The stock’s 52-week high was Rs.43, indicating a near 46% reduction from that peak to the current low.

Profitability metrics have shown considerable strain. The company reported a negative Earnings Per Share (EPS) of Rs.-0.88 in the most recent quarter, alongside a PBDIT (Profit Before Depreciation, Interest and Taxes) of Rs.-0.28 crore, marking the lowest levels recorded in recent periods. These figures highlight subdued earnings generation and operational pressures.

Long-Term Financial Health and Debt Servicing

The company’s long-term financial strength remains under pressure. Its ability to service debt is constrained, as reflected by a low average EBIT to interest ratio of 0.16. This ratio indicates that earnings before interest and taxes cover interest expenses by a narrow margin, raising concerns about financial flexibility.

Return on Equity (ROE) has averaged 2.21%, signalling limited profitability relative to shareholders’ funds. This low ROE suggests that the company has struggled to generate substantial returns for its equity investors over time.

Valuation and Risk Considerations

Shree Steel Wire Ropes is trading at valuations that are considered risky when compared to its historical averages. Over the past year, profits have contracted by approximately 71%, compounding the pressure on the stock price. The company’s performance has lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months.

Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics in the stock.

Sector and Industry Positioning

Operating within the Iron & Steel Products sector, Shree Steel Wire Ropes faces a competitive environment where market dynamics and commodity price fluctuations can significantly impact financial outcomes. The sector itself has seen varied performance, with some companies benefiting from cyclical upswings while others contend with cost pressures and subdued demand.

In this context, the company’s recent financial indicators and stock price movements suggest challenges in maintaining competitive positioning and profitability.

Summary of Key Metrics

To summarise, Shree Steel Wire Ropes’ stock price has declined to Rs.23.2, its lowest level in the past year, reflecting a 33.82% reduction over 12 months. The company’s earnings metrics show negative quarterly EPS and PBDIT, while long-term profitability and debt servicing capacity remain constrained. The stock trades below several key moving averages, and its valuation is considered elevated relative to historical norms.

These factors collectively illustrate the current state of the company’s financial and market performance without projecting future developments.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Claim Your Free Year →