Recent Market Activity and Broader Market Context
On December 4, 2025, the stock price of Shree Steel Wire Ropes experienced a decrease of 1.66%, underperforming its sector by 2.08%. This decline marked a reversal of the stock’s short-term upward trend, following two consecutive days of gains. The stock closed below its 20-day, 50-day, 100-day, and 200-day moving averages, but remained above its 5-day moving average. This suggests a downward momentum in the medium to long term.
In contrast, the broader market index, the Sensex, rebounded from an initial negative opening to close 0.3% higher at 85,365.87 points, just 0.93% below its 52-week high of 86,159.02. This performance was driven by mega-cap stocks trading above their 50-day and 200-day moving averages, indicating a generally bullish market environment that Shree Steel Wire Ropes has not been able to replicate.
Financial Performance and Profitability Indicators
Over the past year, Shree Steel Wire Ropes has seen a total return of -36.76%, in stark contrast to the Sensex’s positive return of 5.44% during the same period. The stock’s 52-week high was Rs.44.30, emphasizing the extent of the decline to the current low of Rs.24.21.
The company’s financial results for the quarter ending September 2025 revealed a PBDIT (Profit Before Depreciation, Interest and Taxes) of Rs.-0.28 crore, marking one of the lowest points in recent quarters. The Earnings per share (EPS) for the same period was Rs.-0.88, indicating a loss-making quarter. These figures highlight the difficulties the company has faced in generating operating profits.
Debt Management and Long-Term Fundamentals
The company’s ability to service its debt is limited, with an average EBIT to interest coverage ratio of 0.16. This ratio suggests that earnings before interest and taxes are not sufficient to comfortably cover interest expenses, indicating financial strain in managing debt obligations.
The Return on Equity (ROE) averaged 2.21%, indicating limited profitability relative to shareholders’ funds. This low ROE suggests that the company has had difficulty generating significant returns on invested capital over the long term.
Valuation and Risk Factors
Shree Steel Wire Ropes is trading at valuations that are considered risky compared to its historical averages. The company’s profits have contracted by approximately 71% over the past year, further dampening investor sentiment and valuation metrics.
In addition to the one-year underperformance, the stock has consistently underperformed the BSE500 index over the last three years, one year, and three months, indicating ongoing challenges in both near-term and long-term performance.
Shareholding Structure
The majority of the company’s shares are held by non-institutional investors, which could impact liquidity and trading dynamics in the stock.
Summary of Current Situation
Shree Steel Wire Ropes’ stock has reached a significant low point at Rs.24.21, reflecting a year characterized by declining returns and subdued profitability. While the broader market has shown a bullish trend, Shree Steel Wire Ropes has not been able to mirror this performance.
