Shrenik Limited (SHRENIK) AI Stock Analysis

• Market Cap: ₹244.80M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.50
• Revenue Growth: -3.26%
• EPS Growth: N/A
• Country: IN
• Employees: 4
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.02
• Shares Outstanding: 612,000,000
• 10 Day Avg. Volume: 762,223
• 30 Day Avg. Volume: 1,225,823
• PEG Ratio: 4.25
• Price to Book (P/B): -0.22
• Price to Sales (P/S): 2.10
• P/FCF Ratio: -296.21
• 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: 38 Underperform
• Price Target: ₹0.39 ▼(-10.45% Downside)
• Action: Downgraded Date: 01/21/26
• Date: Action: Downgraded 01/21/26

The score is primarily constrained by very weak financial performance (losses, negative equity, and deteriorating cash flow). Technicals also reflect a sustained downtrend (price below key moving averages and negative MACD), while valuation remains unfavorable with a very high P/E and no dividend support.

Positive Factors

Diversified textile business model

Operating both trading and processing lines creates durable business flexibility: trading provides market access and inventory turnover while processing captures value‑added margins. This dual model supports multiple B2B revenue channels and reduces dependence on a single activity over months.

Recent revenue expansion

A recent double‑digit revenue growth reading signals strengthening top‑line momentum that can be durable if driven by regained customer demand or successful sales execution. Sustained revenue increases over several quarters improve capacity utilization and provide scope to recover margins.

Historic operating cash generation

Prior periods of positive operating cash flow indicate the business can generate cash from operations under better operating conditions. This operational cash‑generation capability is a recoverable strength that can support working capital and bridge cycles if margins or volumes improve.

Negative Factors

Negative shareholders' equity / solvency risk

Negative shareholders' equity is a structural red flag: liabilities exceed assets, impairing solvency and restricting borrowing capacity. Over a multi‑month horizon this limits financial flexibility, raises refinancing risk, and can force asset sales or restructuring if cash needs persist.

Persistently negative margins

Sustained negative gross and net margins point to structural pricing, cost, or efficiency deficits in the core business. Without durable margin recovery, revenue growth alone cannot generate profits; ongoing losses erode capital, hinder reinvestment, and make long‑term recovery more difficult.

Deteriorating operating and free cash flow

Recent negative operating and free cash flows create persistent liquidity pressure, increasing reliance on external funding. Over 2–6 months this can force cost cuts, curtailed processing activity, or disruptions in supplier relationships, weakening the firm's ability to execute on recovery plans.

Shrenik Limited Business Overview & Revenue Model

Company Description

Shrenik Limited engages in the trading and processing of paper, pulp, paperboards, etc. in Gujarat, Rajasthan, and Maharashtra. It offers printing and writing papers, and other specialty papers; and coated paper, uncoated maplitho paper, copier paper, duplex board, and folding box boards under the Shrenik Premium Copier Paper and Shrenik Premium Digital Paper brand names. The company was incorporated in 2012 and is based in Ahmedabad, India.

How the Company Makes Money

Shrenik Limited generates revenue through multiple streams, including the sale of manufactured goods, wholesale distribution, and export activities. The company's primary revenue comes from its textile division, which supplies fabrics and garments to retailers and wholesalers. Additionally, SHRENIK earns income from agro-products through contracts with local farmers and distribution partnerships. The company has also established significant partnerships with international distributors, enhancing its market reach and contributing to higher sales volumes. Furthermore, its commitment to sustainability attracts eco-conscious consumers, boosting its brand reputation and driving further sales.

Shrenik Limited Financial Statement Overview

Summary

Financial statements indicate severe distress: sharply declining revenue, persistently negative gross/EBITDA/net margins, negative shareholders’ equity (solvency risk), and recently negative operating/free cash flow signaling liquidity pressure.

Income Statement

Shrenik Limited's income statement reveals significant challenges. Gross profit margin has been substantially negative in recent years, reflecting inefficiencies or pricing pressures. Net profit margin is deeply negative, indicating ongoing losses. Revenue has declined drastically from previous highs, suggesting market or operational challenges. The EBIT and EBITDA margins are also negative, confirming operational difficulties. Overall, the income statement suggests poor profitability and declining revenues, which are concerning for future growth prospects.

Balance Sheet

The balance sheet of Shrenik Limited highlights financial instability. The company has negative stockholders' equity, indicating more liabilities than assets, a significant red flag. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt relative to assets suggests high leverage. The equity ratio is negative, reinforcing the imbalance. These factors suggest significant financial risk and potential solvency concerns.

Cash Flow

Cash flow analysis for Shrenik Limited shows mixed results. There is some positive operating cash flow in past periods, but recent figures are negative, indicating cash flow issues. Free cash flow has been fluctuating, with recent periods showing negative figures. The operating cash flow to net income ratio suggests operational challenges in converting profits to cash. The cash flow statement reflects inconsistent cash management and operational cash flow issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	237.31M	181.00M	341.95M	485.56M	638.16M	3.64B
Gross Profit	-8.23M	2.64M	-1.08B	-808.51M	50.75M	183.86M
EBITDA	189.00K	-297.00K	-2.47B	41.60M	36.54M	178.34M
Net Income	1.62M	-894.00K	-2.36B	2.29M	-143.89M	-14.84M
Balance Sheet
Total Assets	37.09M	15.85M	28.56M	2.64B	3.59B	3.54B
Cash, Cash Equivalents and Short-Term Investments	1.01M	1.01M	10.02M	146.32K	260.17K	15.72M
Total Debt	1.24B	1.23B	1.25B	1.46B	1.98B	1.76B
Total Liabilities	1.80B	1.78B	1.79B	2.04B	3.00B	2.80B
Stockholders Equity	-1.76B	-1.76B	-1.76B	594.63M	592.34M	735.44M
Cash Flow
Free Cash Flow	-5.06M	-1.28M	208.22M	46.84T	-76.59M	268.55M
Operating Cash Flow	-5.06M	-1.28M	208.29M	46.85T	-76.55M	268.71M
Investing Cash Flow	394.00K	22.00K	23.02M	19.67M	66.04M	33.18M
Financing Cash Flow	4.67M	-7.75M	-221.43M	-488.31M	-4.95M	-324.63M

Shrenik Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.44
• 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:SHRENIK, the sentiment is Neutral. The current price of 0.44 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.41, and below the 200-day MA of 0.52, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SHRENIK.

Shrenik Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KANANIIND	50 Neutral	₹265.14M	21.13	―	―	―	―
SVPGLOB	39 Underperform	₹335.23M	-0.22	―	―	-85.84%	-93.11%
SHRENIK	38 Underperform	₹244.80M	6.72	―	―	-3.26%	―

Shrenik Limited Corporate Events

Shrenik Files SEBI Demat Compliance Certificate for June 2025 Quarter

Shrenik Limited has submitted to the stock exchange a confirmation certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 30 June 2025, as provided by its registrar and share transfer agent MUFG Intime India Private Limited. The certificate affirms that all securities lodged for dematerialisation in the period were duly processed in line with regulatory norms, with certificates mutilated or cancelled and depository details updated in the register of members within prescribed timelines, although no demat or remat requests were actually received during the quarter, indicating minimal investor transfer activity in that period.

Shrenik Limited files SEBI depository compliance certificate for September 2025 quarter

Shrenik Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 30 September 2025, as confirmed by its registrar and share transfer agent MUFG Intime India Private Limited. The registrar reported that all securities-related processes for the period, including dematerialisation formalities and record updates, were handled within prescribed timelines and that no demat or remat requests were received in the quarter, underscoring procedural compliance for stakeholders.

The confirmation that securities received for dematerialisation were properly processed, cancelled where required, and substituted in the register of members reinforces Shrenik’s adherence to depository norms. For investors and regulators, this filing signals that the company’s share transfer and depository operations remain in order, supporting transparency and the integrity of its listed securities without indicating any unusual activity in the quarter.

Shrenik Limited Files SEBI Dematerialisation Compliance Certificate for Q4 2025

Shrenik Limited has disclosed that it has received the required compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, issued by its registrar and share transfer agent MUFG Intime India Private Limited. The certificate confirms that securities submitted for dematerialisation during the quarter were duly verified, either accepted or rejected within prescribed timelines, appropriately mutilated and cancelled where applicable, and that the corresponding dematerialised holdings are correctly reflected in the depository records and company register in line with stock exchange listing requirements.

This disclosure underscores the company’s adherence to regulatory obligations governing dematerialisation and record-keeping of its shares, which is important for maintaining investor confidence and operational transparency in the securities settlement process. It also signals that there were no reported irregularities in the handling of physical share certificates and their conversion to electronic form during the period, supporting the integrity of Shrenik Limited’s share transfer and depository interface.