Stock Performance and Market Overview
On the 2nd of January, 2026, Shree Steel Wire Ropes Ltd experienced a daily decrease of 3.29%, underperforming its sector by 4.28%. The stock has been on a declining trend for two successive sessions, shedding 5.71% during this time. This downward trend has driven the share price beneath all critical moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum.
In contrast, the broader market has demonstrated resilience. The Sensex began flat but rose 0.25% to trade at 85,403.34, just 0.88% below its 52-week high of 86,159.02. The index is bolstered by bullish moving averages, with the 50-day DMA positioned above the 200-day DMA, and mega-cap stocks spearheading the gains. This divergence underscores the relative weakness of Shree Steel Wire Ropes Ltd within the current market context.
Long-Term and Recent Performance Analysis
Over the past year, Shree Steel Wire Ropes Ltd has yielded a negative return of 35.67%, significantly trailing the Sensex’s positive 6.82% return. The stock’s 52-week high was Rs.43, indicating a near 49% drop from that peak to the current low. This underperformance extends beyond the last year, with the company also lagging behind the BSE500 index over the last three years, one year, and three months.
Financial Health and Profitability Assessment
The company’s financial fundamentals continue to face challenges. It reported operating losses, contributing to a weak long-term fundamental strength evaluation. The average EBIT to interest ratio stands at a low 0.16, indicating limited capacity to comfortably service debt obligations. Return on Equity (ROE) averages at 2.21%, reflecting modest profitability relative to shareholders’ funds.
The quarterly results for September 2025 further highlight the challenges. The PBDIT (Profit Before Depreciation, Interest and Taxes) was negative at Rs. -0.28 crore, while Earnings Per Share (EPS) dropped to Rs. -0.88, marking the lowest levels recorded. These figures underscore the subdued earnings environment and the strain on operational cash flows.
Valuation and Risk Factors
The stock is currently trading at valuations deemed risky relative to its historical averages. Profitability has sharply deteriorated, with profits falling by 71% over the past year. Negative EBITDA levels add to the risk profile, signalling that the company’s earnings before interest, tax, depreciation, and amortisation are insufficient to cover operating costs.
The majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status within the Iron & Steel Products sector.
Mojo Score and Rating Update
Shree Steel Wire Ropes Ltd holds a Mojo Score of 12.0 and a Mojo Grade of Strong Sell as of 21 Jan 2025, an upgrade from the previous Sell rating. This grading reflects the company’s deteriorated fundamentals and heightened risk profile.
