1. At a Glance – The 124-Year-Old Painter Who Forgot to Make Money
Shalimar Paints Ltd — a company incorporated in 1902 — is currently painting losses thicker than its exterior emulsions.
- Market Cap: ₹502 Cr
- Current Price: ₹60
- 3-Month Return: -15.6%
- 1-Year Return: -51%
- TTM Sales: ₹598 Cr
- TTM PAT: ₹-67 Cr
- ROE: -22.6%
- ROCE: -12.8%
- Debt: ₹190 Cr
- Price to Book: 1.76
- Industry P/E: 34.6
- Company P/E: Not applicable (negative earnings)
Latest Quarterly Results (Q3 FY26 – Dec 2025):
- Revenue: ₹131 Cr
- Net Loss: ₹-27 Cr
- EPS: ₹-3.18
The company proudly announced that EBITDA losses halved and working capital improved by 15 days.
Lovely. But we’re still staring at red ink.
So here’s the question:
Is this the early brushstroke of a turnaround… or just another coat of optimism?
Let’s investigate.
2. Introduction – The Legacy Brand Fighting for Relevance
Shalimar Paints is 124 years old. It has survived colonial India, independence, economic reforms, and multiple ownership changes.
But surviving history is not the same as surviving competition.
The Indian paints industry today is dominated by giants like:
- Asian Paints
- Berger Paints
- Kansai Nerolac
- Akzo Nobel India
These companies generate thousands of crores in profit.
Shalimar? It generates negative numbers with confidence.
Yet, this isn’t some unknown microcap. It belongs to the Ratan Jindal faction of the O.P. Jindal group, alongside the Jhunjhunwala faction. Promoters now hold ~75%.
Ownership consolidation? Yes.
Profitability consolidation? Not yet.
Sales have grown at:
- 3-year CAGR: 19%
- 5-year CAGR: 12%
But profits?
So growth without profits. Expansion without margin. Volume without value.
Is management fixing it? Or repainting the same cracked wall?
3. Business Model – WTF Do They Even Do?
Simple.
They make paint.
Two main verticals:
🎨 Decorative Paints
Interior emulsions, exterior finishes, rural distempers.
FY23 decorative volume: ~28,966 KL
They’ve:
- Added 1,500 new channel partners
- Enrolled 22,000 painters
- Improved emulsion mix by 5%
Basically, they’re trying to increase premium mix.
🏭 Industrial Paints
Pipeline coatings, marine coatings, protective coatings.
Projects include:
- NPCIL Kudankulam pipeline
- Adani Kutch Copper expansion
