Shalimar Paints Ltd

Ticker: SHALPAINTS
Risky 48/100

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Investing Reference

Price
78.31
Market Cap
655.54
Debt/Equity
0.5202
ROE %
-22.639
PB
2.0812
Promoter %
74.961
Pledge %
45.986
1Y Rev Growth %
12.130
5Y Rev Growth %
8.933
NP Margin %
-13.165
NP Margin 5Y Avg %
-12.867

Trading Reference

1M Return %
-10.531
6M Return %
-23.652
1Y Return %
-31.210
% Away 52W High
83.885
% Away 52W Low
12.417
Daily Volume
43202
Investment Verdict
Risky
Score 50/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Avoid
Score 11/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Shalimar Paints Ltd shows potential for growth amid market challenges.

✅ Positives
  • Strong brand recognition in the paint industry
  • Expanding distribution network across India
  • Focus on sustainable and eco-friendly products

⚠️ Negatives
  • Intense competition from established players
  • Volatility in raw material prices
  • Dependence on cyclical construction sector

Verdict
Moderate growth potential with risks.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 31/10/2025

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Business Overview

Shalimar Paints Ltd is a leading manufacturer of decorative and industrial paints in India, catering to both residential and commercial sectors. With a legacy of over 100 years, the company is known for its commitment to quality and innovation. Shalimar Paints offers a wide range of products that enhance aesthetics and protect surfaces, making it a trusted choice for homeowners, builders, and architects alike. The company's focus on sustainability and customer satisfaction further solidifies its position in the market.

  • Established brand with over 100 years of experience
  • Wide range of high-quality decorative and industrial paints
  • Strong commitment to sustainability and innovation
  • Trusted by homeowners, builders, and architects
  • Focus on customer satisfaction and service excellence

Investment Thesis

Shalimar Paints Ltd presents a compelling investment opportunity driven by a strong promoter group with a solid track record, significant growth potential in digital services, and attractive valuation metrics compared to its peers. This combination positions the company for sustained growth and value creation.

  • Strong promoter group with a history of credibility and strategic vision.
  • Growing focus on digital services, enhancing customer engagement and sales.
  • Attractive valuation compared to industry peers, offering potential upside.
  • Robust brand equity in the paints sector, ensuring customer loyalty.
  • Positive market trends in the home improvement sector supporting growth.

Opportunity vs Risk

Opportunities
  • Growing demand for decorative paints
  • Expansion into new markets
  • Strong brand recognition
  • Rising home renovation trends
  • Potential for export growth
Risks ⚠️
  • Intense competition in industry
  • Fluctuating raw material prices
  • Economic downturn impacts sales
  • Regulatory changes affecting operations
  • Dependence on real estate sector

Peer Perspective

Shalimar Paints Ltd trades at a discount to peers like Asian Paints and Berger Paints, primarily due to margin volatility. A stable margin outlook could trigger a rerating, aligning it closer to its more established competitors.

Future Outlook

Shalimar Paints Ltd is well-positioned for growth, driven by expanding market opportunities and innovative products, provided the company maintains strong execution and cost control measures.

AI FAQs for Retail Users

  • Q: What does Shalimar Paints Ltd do?
    A: Shalimar Paints Ltd manufactures and sells a variety of paints and coatings for residential and industrial use.
  • Q: Is Shalimar Paints Ltd a good investment?
    A: Investment decisions should be based on individual research and financial goals; consider consulting a financial advisor.
  • Q: What are the risks of investing in Shalimar Paints Ltd?
    A: Risks include market volatility, competition, and changes in raw material prices affecting profitability.
  • Q: How has Shalimar Paints Ltd performed recently?
    A: Recent performance can be found in financial reports and stock market updates; past performance does not guarantee future results.
  • Q: Where can I buy Shalimar Paints Ltd shares?
    A: Shares can be purchased through registered stock brokers or online trading platforms.
📊 Stock Investment Checklist (100 Points)
Shalimar Paints Ltd • Updated: 2025-09-17 16:38:42
  • 8
    Business
    High
    The paints industry is evolving with a focus on sustainability and innovation.
  • 10
    Growth
    High
    Moderate revenue growth observed, but profit margins remain inconsistent.
  • 10
    Profitability
    High
    ROE and ROCE are acceptable, but cash flow is volatile.
  • 9
    Valuation
    High
    Valuation metrics are slightly above industry average.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity ratios need improvement.
  • 6
    Governance
    Good
    Promoter holding is decent, but some concerns over pledging.
  • 5
    Drivers
    Good
    Growth drivers exist but execution risks are notable.
  • 1
    Technicals
    Low
    Market sentiment is weak with low liquidity.
Final Score & Verdict
Score 48 / 100 • Risky
Shalimar Paints Ltd presents a mixed outlook with several risks overshadowing growth potential.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 70/100
  • Growth Potential: 65/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


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