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Shalimar Paints
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Shalimar Paints Ltd. established in 1902 is engaged in manufacturing and selling of decorative paints and industrial coatings. The Company currently has 3 manufacturing facilities, one each at Chennai, Nashik and Sikandrabad (Uttar Pradesh). It has a wide distribution network, 32 sales depots, and 3 regional distribution centers across all four zones in India. Apart from India, the Company catered to consumers from Nepal, UAE, Bhutan and Seychelles.
Courtalds Coatings, UK was the holding company and it holds majority shareholding through it's subsidiary International Paint Company, UK. It became a private limited company in 1956 and later on in 1961, it was converted into a public limited company. The company acquired its present name in 1963.
Courtalds slowly started disinvesting since 1978 and finally in 1989, it fully disinvested its stake and maintained only its technical and marketing collaboration with the Indian company till 1994. The Courtald's stake was acquired by G Jhunjhunwala, a HongKong based NRI (20%) and the Delhi-based O P Jindal group (42%).
The company has three product segments - industrial, marine and architectural paint segments. It also manufactures varnishes, resins, etc. The company has two manufacturing units one at Howrah, West Bengal and the other at Nashik, Maharashtra. 90% of its raw materials are obtained from Kerala Mining and Materials (KMML).
The company diversified in 1993 into aviation coatings. It also launched a premium range of wall finisher - Hussain Collections - in the decorative sector. It also entered into a technical collaboration with Salchi, Italy to manufacture solvent borne industrial paints. A joint venture company, Grace Shalimar (P) Ltd, has been formed with W R Grace & Co, to produce 2000 tpa of packaging coatings for which a new plant will be set up at Nashik.
In 1999-2000, the company introduced two new products, MELA, an acrylic distemper and XTRA, a premium 100% acrylic exterior finish paint. In 2000-01, the company has entered into a tie-up with Creanova, a world leader in colorants and in 2001-02 the company launched colour tinting system business under the brand name of Color Space. Several new products including Roadcoat,Shaktiman were introduced during 2001-02.
The Company launched two new products, No. 1 Silk Emulsion, an economical water thinnable Acrylic coating for interior walls and Superlac soft sheen Satin Enamel for wood, metal and wall surface in 2002-03. The Sikandrabad factory which was acquired in March 2003 became fully operational.
During the year 2007-08, Directors had, with a view to diversify into the fast growing real estate sector, formed a separate division i.e. 'Real Estate Division' to carry on the said new line of activities. Subsequently, the Company, decided to hive-off the Real Estate Division to a separate subsidiary company. Accordingly, the Company formed a subsidiary company by the name 'Shalimar Adhunik Nirman Private Limited' and initiated the process of hiving off its Real Estate Division to the said subsidiary.
During the year 2008-09, the Hon'ble High Courts at Kolkata and Delhi sanctioned the Scheme of Arrangement between the Company and Shalimar Adhunik Nirman Limited (SANL) and accordingly the Company hived-off its Real Estate Division to SANL, subsidiary of the Company with effect from the appointed date on 31st March, 2008.
The Company in 2011-12 launched a premium exterior emulsion under the brand 'Self Clean'. New products like Signature, Superlac Stay Clean, Weather PRO+, G. P. Synthetic Enamel were launched in the decorative paint segment in 2015-16. In the industrial segment, it launched quite a few new products namely Single Pack DT- Primer cum Topcoat, Low Cost Zinc Silicate for Projects, High Build Quick Drying Coal Tar Epoxy, Solvent less Epoxy Costing For Pipe Industries, Quick drying Single pack Paint for Cylinder Industries, Black and Clear Bitumen Varnish and Stoving Paint for Hair Clip.
During 2016-17, In the Decorative segment, Company launched new products namely, Zinc Chromate Yellow Green Primer, Super Shaktiman Projects Acrylic Exterior Emulsion, Xtra Tough Premier Acrylic Exterior Emulsion, Superlac Advance Premium Acrylic Interior Emulsion and in decorative packaging segment, Red Oxide Metal Primer, Universal White Primer were launched. In the Industrial Product segment, it launched Solventless Food Grade Epoxy, Quick Drying Alkyd Primer, Phenolic Modified Coating, Heat Resistance Coating and Zinc Phosphate Primer.
As on March 31, 2022, Company had two subsidiaries, viz. Shalimar Adhunik Nirman Limited (SANL) and Eastern Speciality Paints & Coatings Private Limited (ESPCPL).
Shalimar Paints share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Shalimar Paints indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Shalimar Paints is valued compared to its competitors.
Shalimar Paints PE ratio helps investors understand what is the market value of each stock compared to Shalimar Paints 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Shalimar Paints evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Shalimar Paints generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Shalimar Paints in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Shalimar Paints shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Shalimar Paints compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Shalimar Paints over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Shalimar Paints helps investors get an insight into when they can enter or exit the stock. Key components of Shalimar Paints Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Shalimar Paints shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Shalimar Paints ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Shalimar Paints provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Shalimar Paints highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Shalimar Paints .
The balance sheet presents a snapshot of Shalimar Paints ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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