Persistent Downtrend and Market Underperformance
Shiva Cement’s recent price action highlights a significant weakening in investor sentiment. The stock has been falling consecutively for five trading sessions, accumulating a loss of 6.73% over the past week. This contrasts sharply with the Sensex, which has gained 0.79% in the same period, underscoring the stock’s relative weakness. The month-to-date performance further emphasises this trend, with Shiva Cement declining 14.50%, while the Sensex has advanced by nearly 1%.
Year-to-date figures paint an even more challenging picture for shareholders. The stock has plummeted by 40.88%, a stark contrast to the Sensex’s 9.08% gain. Over the last year, Shiva Cement’s share price has dropped by 46.22%, while the benchmark index has risen by 10.47%. Even over a three-year horizon, the stock has lost more than half its value, declining 52.54%, whereas the Sensex has surged by 39.39%. Although the five-year return remains positive at 78.40%, it still trails the Sensex’s robust 94.23% appreciation, indicating underwhelming long-term performance relative to the market.
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Technical Indicators Signal Weak Momentum
From a technical standpoint, Shiva Cement is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This widespread weakness across short, medium, and long-term indicators suggests a bearish momentum that has yet to find a reversal point. The stock also hit a new 52-week low of ₹23.22 on 21-Nov, reinforcing the negative technical outlook.
Despite the falling price, investor participation has shown signs of rising interest. Delivery volume on 20 Nov reached 1.28 lakh shares, marking a 20.09% increase compared to the five-day average delivery volume. This uptick in trading activity could indicate that some investors are either repositioning or accumulating at lower levels, although it has not yet translated into price support.
Liquidity remains adequate for trading, with the stock’s average traded value supporting trade sizes of approximately ₹0.01 crore based on 2% of the five-day average. This ensures that the stock remains accessible to active traders and investors despite its recent decline.
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Conclusion: A Challenging Outlook Amid Continued Weakness
In summary, Shiva Cement’s share price decline on 21-Nov is part of a broader, sustained downtrend characterised by underperformance against the Sensex and sector peers. The stock’s fall to a fresh 52-week low, combined with its position below all major moving averages, signals persistent bearish momentum. While rising delivery volumes suggest increased investor activity, this has yet to halt the downward pressure on the stock.
Investors should weigh these factors carefully, considering the stock’s historical underperformance and current technical weakness. Those interested in the cement sector may wish to explore alternative opportunities that demonstrate stronger fundamentals and momentum.
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