Shalimar Paints (SHALPAINTS)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding is high at 74.96%, aligning management with minority shareholders.
• Price-to-book of 1.34 provides some downside support relative to book value of ₹39.50.
• Piotroski F-Score of 5/9 suggests a moderate level of fundamental health despite current losses.
• Debt-to-equity at 0.67 is not excessive, leaving room for operational recovery.

Concerns

• Deep negative ROE of -20.14% and ROCE of -12.80% indicate poor capital efficiency and value destruction.
• Sales are declining at -11.55%, and the latest quarter shows a net loss of ₹-27 Cr.
• No dividend and a meaningless P/E of 0.00 offer no income or earnings comfort to investors.
• The positive profit growth of 10.22% is on a negative base and may be misleading.

AI Analysis

Shalimar Paints is not the sort of business I'd normally look at. A paint company should have brands, distribution, and pricing power; here the latest quarter tells the story: sales of ₹131 Cr and a net loss of ₹27 Cr. Return on equity is deeply negative at -20.14%, and ROCE at -12.80% means it isn't earning its cost of capital. A debt-to-equity ratio of 0.67 adds balance-sheet risk, and with no dividend, shareholders are asked to wait indefinitely. But I would be dishonest if I said the numbers are entirely hopeless. The book value is ₹39.50, and the market price of ₹52.87 is only 1.34 times that. Promoters hold 74.96%, which aligns their interests with minority holders, and the Piotroski F-score of 5 suggests some fundamental health, not a collapsing shell. Sales declined 11.55%, yet profit growth shows positive 10.22% — though I treat that cautiously because it is on a negative earnings base and can be misleading. The problem is not valuation; the problem is earning power. With ROE at -20.14%, capital is being destroyed. A P/E of 0.00 is just a reminder that losses make multiples meaningless. I see no moat here, only a struggling competitor in a competitive paint industry. This is a turnaround candidate, not a compounder. I would need evidence of revenue stabilization, improving margins, and a clear path back to positive ROE before I put money to work. At 1.34 times book, the market is pricing in a recovery. As Graham would say, price is what you pay, value is what you get — and here value depends entirely on management executing a credible turnaround.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer