Shalimar Paints Ltd (SHALPAINTS) AI Stock Analysis

• Market Cap: ₹3.74B
• Dividend Yield: N/A
• Average Volume (3M): 40.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 8.89%
• EPS Growth: 24.00%
• Country: IN
• Employees: 896
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -3.18
• Shares Outstanding: 83,711,180
• 10 Day Avg. Volume: 15,769
• 30 Day Avg. Volume: 40,240
• PEG Ratio: -25.78
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 1.45
• P/FCF Ratio: -8.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹47.00 ▼(-37.64% Downside)
• Action: Upgraded Date: 03/14/26
• Date: Action: Upgraded 03/14/26

The score is primarily weighed down by weak financial performance—losses, collapsing margins, and negative operating/free cash flow. Technicals add pressure as the price remains below all key moving averages with negative momentum. Valuation is neutral because the negative P/E reflects losses and dividend support is not available.

Positive Factors

Diversified end-markets (decorative & industrial)

Serving both decorative (retail/dealer) and industrial/protective (project/contract) segments gives Shalimar structural revenue diversification. This mix smooths demand swings: retail repaint cycles support steady aftermarket sales while industrial contracts tie revenue to infrastructure and maintenance spending over the medium term.

Manageable leverage; stable equity ratio ~44.8%

A moderate debt profile and an equity ratio near 45% indicate balance-sheet capacity to absorb operational stress. That financial headroom supports refinancing, working capital, or capex needs without forcing immediate asset sales, an important structural buffer while margins and cash flow recover.

Recent revenue growth (12.9% YoY)

Top-line expansion of ~12.9% shows the company can regain or grow market share and demand. Sustained revenue growth provides a base to leverage fixed costs and potentially restore margins if cost controls and pricing strategies are implemented over the coming quarters.

Negative Factors

Negative net income; sharp gross margin decline

A collapse in gross margin to ~11.4% and ongoing net losses point to structural pressure from input costs, pricing erosion, or product mix shifts. Sustained low gross margins fundamentally limit the company's ability to generate operating earnings even if revenues recover.

Negative operating and free cash flow

Persistent negative operating and free cash flow indicates weak cash conversion and operational inefficiency. Over months this constrains investment, working capital, and debt servicing capacity, raising reliance on external financing or equity and eroding strategic flexibility.

Inconsistent revenue growth history

Revenue has been uneven historically despite the recent uptick, implying demand cyclicality or execution variability. Inconsistent top-line performance complicates forecasting, capacity planning, and sustained margin recovery, making durable operational improvements harder to achieve.

Shalimar Paints Ltd Business Overview & Revenue Model

Company Description

Shalimar Paints Limited engages in manufacturing, selling, and distributing paints and coatings in India. The company offers decorative paints for interior and exterior surfaces; industrial paints; marine paints, including antifouling paints; packaging coatings for metal decoration; and emulsions, distempers, primers, putty, enamels, varnishes, and lacquers. The company markets its products under the Weather Pro, Xtra Tough Premier, Shaktiman, Signature, Stay Clean, Superlac Advance, No 1 Silk and Master, and NO.1 Distemper brand names. The company was formerly known as Shalimar Paint Colour & Varnish Co. Ltd. and changed its name to Shalimar Paints Limited in September 1963. Shalimar Paints Limited was incorporated in 1902 and is based in Gurugram, India.

How the Company Makes Money

The company primarily makes money by selling paints and coatings that it manufactures. Key revenue streams include (1) decorative paints (e.g., interior and exterior wall finishes and related building coatings) sold for residential, commercial, and institutional construction and repainting demand, and (2) industrial and protective coatings supplied for use on metal, concrete, and other substrates where durability and corrosion protection are required (commonly linked to infrastructure and industrial maintenance and project work). Revenue is recognized from product sales, typically routed through distribution and dealer/retail channels for decorative products and through direct/contract-based supply for project and industrial customers for protective coatings. Information on any specific, material partnerships or customer concentration is null.

Shalimar Paints Ltd Financial Statement Overview

Summary

Despite recent revenue growth (12.9%), profitability is weak with negative net income, sharply lower gross margin (25.9% to 11.4%), and negative EBIT/EBITDA margins. Cash flow is the biggest concern with negative operating cash flow and deteriorating free cash flow; balance sheet leverage appears only mildly pressured but does not offset operational weakness.

Income Statement

Shalimar Paints Ltd has shown inconsistent revenue growth with a recent increase from 5306M to 5990M (12.9% growth). However, profitability remains a concern with negative net income and declining gross profit margins (from 25.9% to 11.4% in the latest period). Both EBIT and EBITDA margins are negative, indicating operational struggles.

Balance Sheet

The company's debt-to-equity ratio is manageable, reflecting a balance between debt and equity. However, stockholders' equity has decreased, leading to a lower ROE and a slight increase in liabilities. The equity ratio is relatively stable at around 44.8%, suggesting a mildly leveraged position.

Cash Flow

The cash flow situation is challenging, with negative free cash flow and operating cash flow. The free cash flow has deteriorated significantly, indicating cash management issues. The ratios of operating cash flow to net income and free cash flow to net income are unfavorable, highlighting inefficiencies in cash utilization.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.13B	5.99B	5.35B	4.82B	3.58B	3.24B
Gross Profit	1.61B	686.00M	1.42B	1.23B	861.59M	1.00B
EBITDA	-240.10M	-468.40M	-487.30M	-75.40M	-286.70M	65.40M
Net Income	-643.10M	-801.60M	-738.50M	-361.50M	-603.51M	-498.63M
Balance Sheet
Total Assets	6.88B	7.02B	6.70B	6.24B	6.47B	5.06B
Cash, Cash Equivalents and Short-Term Investments	582.90M	533.10M	1.03B	1.06B	1.62B	76.74M
Total Debt	1.90B	1.64B	1.06B	1.40B	1.68B	1.31B
Total Liabilities	4.03B	3.87B	2.76B	2.71B	2.96B	2.83B
Stockholders Equity	2.84B	3.15B	3.93B	3.53B	3.51B	2.23B
Cash Flow
Free Cash Flow	-135.60M	-1.05B	-395.30M	-591.30M	-648.70M	138.60M
Operating Cash Flow	-27.80M	-723.20M	176.80M	-479.30M	-618.05M	159.02M
Investing Cash Flow	-104.60M	-178.40M	-513.50M	-837.80M	-57.49M	-49.41M
Financing Cash Flow	131.00M	444.20M	628.10M	-68.70M	2.25B	-111.18M

Shalimar Paints Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHALPAINTS, the sentiment is Negative. The current price of 75.37 is above the 20-day moving average (MA) of 52.02, above the 50-day MA of 59.46, and above the 200-day MA of 74.19, indicating a bearish trend. The MACD of -3.75 indicates Positive momentum. The RSI at 24.81 is Positive, neither overbought nor oversold. The STOCH value of 14.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHALPAINTS.

Shalimar Paints Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHAGERIA	63 Neutral	₹6.18B	17.61	―	0.81%	33.39%	85.08%
SHREEPUSHK	62 Neutral	₹9.66B	17.66	―	0.52%	28.67%	50.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SHIVALIK	57 Neutral	₹3.69B	51.21	―	0.13%	13.17%	-0.02%
BODALCHEM	52 Neutral	₹6.85B	697.51	―	―	15.56%	2114.71%
DECCANCE	48 Neutral	₹9.07B	-467.16	―	0.08%	-28.32%	93.44%
SHALPAINTS	41 Neutral	₹3.74B	-4.84	―	―	8.89%	24.00%

Shalimar Paints Ltd Corporate Events

Shalimar Paints Seeks Stock Exchange Nod to Reclassify Certain Promoter Group Shareholders as Public

Shalimar Paints has informed the stock exchanges that, following board approval on January 13, 2026, it has submitted a formal application on January 17, 2026 to reclassify certain shareholders from the promoter/promoter group category to the public category under Regulation 31A of SEBI’s Listing Regulations. The reclassification request involves a set of largely non-holding or negligible-holding promoter group individuals, and is subject to no-objection and approval from BSE and NSE; the move could further clarify and streamline the company’s shareholding structure, with Shalimar Paints stating it will disclose any material developments in line with regulatory requirements.