Shalimar Paints Ltd (SHALPAINTS) AI Stock Analysis

• Market Cap: ₹5.33B
• Dividend Yield: N/A
• Average Volume (3M): 40.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 8.89%
• EPS Growth: 24.00%
• Country: IN
• Employees: 896
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -1.69
• 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: 39 Underperform
• Price Target: ₹60.00 ▼(-20.39% Downside)

Shalimar Paints Ltd's stock score is primarily impacted by its poor financial performance and weak technical indicators. The company's negative profitability and cash flow issues are significant concerns, compounded by bearish market momentum. The negative P/E ratio and lack of dividend yield further detract from its valuation appeal.

Positive Factors

Revenue Growth

A reported 12.9% revenue rise shows the company can expand top-line across decorative and industrial coatings. Sustained revenue growth supports scale benefits, broader dealer and project traction, and provides a base for margin recovery if cash conversion improves.

Manageable Leverage

A moderate leverage profile and an equity ratio near 44.8% give the company structural financial flexibility versus highly leveraged peers. That balance reduces refinancing risk and permits targeted capex or distribution investment if operating performance stabilizes.

Diversified End Markets

Serving both decorative retail markets and industrial/protective project customers provides durable revenue diversification. Exposure to repaint cycles and infrastructure maintenance plus mixed channel sales (dealers and direct contracts) cushions demand swings.

Negative Factors

Weak Cash Flow

Persistent negative operating and free cash flow undermines the firm's ability to self-fund working capital, capex and debt service. Over multiple quarters this forces reliance on external financing, raising costs and constraining strategic investments and recovery.

Margin Compression

A sharp fall in gross margin to 11.4% and negative operating margins indicate structural margin pressure from input cost inflation, pricing weakness or adverse mix. Without sustained pricing power or material cost efficiencies, long-term profitability will remain challenged.

Eroding Equity Base

Declining shareholders' equity and lower ROE reflect cumulative losses that erode the capital base. A weakened equity cushion increases financial vulnerability, may limit funding alternatives, and could necessitate dilutive or costly financing until earnings rebuild retained capital.

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

Shalimar Paints Ltd generates revenue primarily through the sale of its paints and coatings products. The company's revenue model is built on multiple key streams, including direct sales to wholesalers and retailers, business-to-business (B2B) transactions with construction companies and contractors, and e-commerce sales through online platforms. Additionally, SHALPAINTS benefits from strategic partnerships with distributors and retailers that enhance its market reach. The company also invests in marketing and promotional activities to increase brand visibility and customer loyalty, further contributing to its earnings. Seasonal demand for home improvement and construction projects often leads to spikes in revenue during specific times of the year.

Shalimar Paints Ltd Financial Statement Overview

Summary

Shalimar Paints Ltd is facing significant financial challenges, with negative profitability metrics and cash flow issues. Despite some revenue growth, the company struggles with maintaining positive margins and efficient cash management. The balance sheet shows a balance in leveraging, but overall financial health needs improvement.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.24B	5.99B	5.35B	4.82B	3.58B	3.24B
Gross Profit	1.55B	686.00M	1.42B	1.23B	861.59M	1.00B
EBITDA	-325.10M	-468.40M	-487.30M	-75.40M	-286.70M	65.40M
Net Income	-697.90M	-801.60M	-738.50M	-361.50M	-603.51M	-498.63M
Balance Sheet
Total Assets	0.00	7.02B	6.70B	6.24B	6.47B	5.06B
Cash, Cash Equivalents and Short-Term Investments	567.60M	533.10M	1.03B	1.06B	1.62B	76.74M
Total Debt	0.00	1.64B	1.06B	1.40B	1.68B	1.31B
Total Liabilities	-3.15B	3.87B	2.76B	2.71B	2.96B	2.83B
Stockholders Equity	3.15B	3.15B	3.93B	3.53B	3.51B	2.23B
Cash Flow
Free Cash Flow	0.00	-1.05B	-395.30M	-591.30M	-648.70M	138.60M
Operating Cash Flow	0.00	-723.20M	176.80M	-479.30M	-618.05M	159.02M
Investing Cash Flow	0.00	-178.40M	-513.50M	-837.80M	-57.49M	-49.41M
Financing Cash Flow	0.00	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: Neutral
• STOCH: Neutral

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 65.20, above the 50-day MA of 63.59, and below the 200-day MA of 81.22, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 42.90 is Neutral, 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
SHREEPUSHK	68 Neutral	₹11.31B	15.79	―	0.52%	28.67%	50.12%
BHAGERIA	63 Neutral	₹7.43B	14.85	―	0.81%	33.39%	85.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BODALCHEM	60 Neutral	₹6.51B	18.23	―	―	15.56%	2114.71%
SHIVALIK	54 Neutral	₹4.76B	33.52	―	0.13%	13.17%	-0.02%
DECCANCE	48 Neutral	₹9.43B	28.44	―	0.08%	-28.32%	93.44%
SHALPAINTS	39 Underperform	₹5.33B	-8.03	―	―	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.

Shalimar Paints Announces Q2 2025 Financial Results

Shalimar Paints Ltd announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, by its Board of Directors. The results, which include both standalone and consolidated figures, were reviewed by the company’s statutory auditors and are in compliance with Indian Accounting Standards. This announcement reflects the company’s ongoing transparency and adherence to regulatory requirements, potentially impacting investor confidence and market positioning.

Shalimar Paints Ltd Seeks Reclassification of Promoter Group Shares

Shalimar Paints Ltd has received a revised request from Ms. Hena Devi Goyal for reclassification from the ‘Promoter Group’ to the ‘Public’ category, as she holds 60 equity shares of the company. This reclassification request, along with others from the Promoter Group, requires approval from the Board of Directors and relevant stock exchanges, which the company will pursue in accordance with regulatory requirements.

Shalimar Paints Seeks Shareholder Reclassification

Shalimar Paints Ltd has announced a request for reclassification of certain shareholders from the ‘Promoter Group’ to the ‘Public’ category. This move, involving shareholders with no current shareholding, requires approval from the Board of Directors and stock exchanges, potentially impacting the company’s governance structure and market perception.