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Shalimar Wires Industries Ltd Stock Analysis

Small Cap
Evaluated by 185 users | BSE: 532455 | NSE: |
Metal - Non Ferrous
Shalimar Wires Industries started with a mission in 1962 to update technology in the Paper Industry and progressively reduce dependence on imports. The first step in the realisation of that mission was the manufacture of Fourdrinier Wire Cloth, which was a pioneering success in the area of...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed -750.93%-17.54%-12.47%-3.76%-8.29%-6.54%-17.52%219.23%0.84%3.76%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 82.686.592.590.694.496102105115111
Y-o-Y Gr. Rt.-4.7%7%-2%4.2%1.7%6.4%3.1%9.5%-3.8%
Adjusted EPS (Rs.) 45.683.963.01-0.420.26-0.032.0112.47-1.19-0.73
Y-o-Y Gr. Rt.--91.3%-24%-114%NA-111.5%NA520.4%-109.5%NA
Book Value per Share (Rs.) -305.68-101.64-56.05-46.47-46.57-46.63-40.8412.0110.7610.05
Adjusted Net Profit 30.412.59.5-1.61-0.17.653.3-5.1-3.1
Net Op. Cash Flow (Rs. Cr.) 15.71713.712.834.9-3.314.524115.630.8
Debt to Cash Flow from Ops 6.173.9145.21.6-21.093.940.295.752.99
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Shalimar Wires Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.3%3.3%2.8%-3.8%
Adjusted EPS -163.2%-222.9%-171.4%NA
Book Value per Share 000-6.6
Share Price -7.6% 4.4% -41.7% -13.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -14.99-7.53-6.181.07-0.670.08-5.59-146.28-10.47-7.01
Operating Profit Margin (%) 28.8522.619.710.7215.6513.0810.82-0.954.729.27
Net Profit Margin (%) 36.8114.4810.29-1.731.04-0.137.3950.61-4.42-2.81
Debt to Equity -0.56-0.42-0.37-0.46-0.38-0.47-0.461.361.962.14
Working Capital Days 255260253268275290273264208228
Cash Conversion Cycle 441721631751671801711508250
Entity Percentage Holding
Promoters 65.64%
Institutions 1.81%
Non-Institutions 32.55%
Pledged *100.00100.00100.00100.0054.2454.2454.2454.2454.2454.24
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Shalimar Wires Industries Ltd's performance infers:

Shalimar Wires Industries Ltd earnings have declined by -222.9%, whereas share price has appreciated 4.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Shalimar Wires Industries Ltd share prices over the last 10 years. Here is what we found out:

Shalimar Wires Industries Ltd share price has appreciated -16% annually over the past ten years.

Shalimar Wires Industries started with a mission in 1962 to update technology in the Paper Industry and progressively reduce dependence on imports. The first step in the realisation of that mission was the manufacture of Fourdrinier Wire Cloth, which was a pioneering success in the area of import substitution, and the development of indigenous capability.

The company also set up facilities at its unit for the manufacture / reconditioning of Dandy Rolls (an import substitute item used in

Shalimar Wires Industries started with a mission in 1962 to update technology in the Paper Industry and progressively reduce dependence on imports. The first step in the realisation of that mission was the manufacture of Fourdrinier Wire Cloth, which was a pioneering success in the area of import substitution, and the development of indigenous capability.

The company also set up facilities at its unit for the manufacture / reconditioning of Dandy Rolls (an import substitute item used in paper machines for improving the quality of paper and for water marking). In the early 70's it was found that their installed capacity of wire cloth was not adequate to cater to the requirements of the Paper Industry of India and some exports to South East Asian countries. For this purpose additional looms were installed in the years 1971-73.  Meanwhile, it was felt that this unit should produce some other products for paper industry that can be sold with value offering. With this idea,Dandy Roll production started in the year 1972. From the early 1970 the paper industry started using synthetic fabrics in place of metal wire cloth.Their division sensed the change and started working for the synthetic fabrics in-house.

In the initial stage certain fabrics were produced and tried in paper mills with encouraging results in the period 1975-78. By acquiring the required technical know-how for the production of Synthetic forming fabrics in India this unit started producing single layer synthetic forming fabric. In 1987 they added Multi layer forming fabric into their production range.

Products backed by a trained team of Technical Service Personnel having wide spread practical knowledge of papermills. n house R&D wing developing designs suitable for ever changing trends of the paper industry. Shalimar Wires is an ISO 9001-2000 certified Company.

The company is a pioneer and leader in EDM Industry in India and has a well-established and reputed global network in place.

The company is a pioneer and leader in EDM Industry in India and has a well-established and reputed global network in place. Their range of EDM Wires covers almost all applications and can be used on all types of machines. The company has installed state of the art manufacturing and processing equipment to produce uniform and consistent quality, supported by vast network managed by highly professional and experienced engineers.

EDM Wire Manufacturing process includes Special Casting, Annealing,Cleaning & Spooling. Independent Testing and R&D facilities dedicated for EDM Wires ensure superior product quality. Their R&D engineers are continuously upgrading existing product range as well as developing new products for various new application areas.

Different divisions of the company:

  • Paper Mills Products ( PMP ) Division is a pioneer in India in providing products and services to the paper mills spread all across the country and abroad. Situated in the state of West Bengal in India; it has an offering that encompasses the complete gamut of Paper Industry requirements. 
  • Non Ferrous Wires ( NF ) Division of the company is a pioneer and leader in theEDM Industry in India and in addition to EDM wires it also offers a wide range of other non-ferrous wires like Copper Alloy / Phosphor Bronze Wires, Zipper Flat Wires, Tooth Brush Anchor Wires, etc.

Product range of the company includes:

  • Paper Mills Products- Synthetic Wire Cloth , Single Layer Forming Fabric, Double Layer Forming Fabric, 2.5 Layer Forming Fabric,   Three Layer Forming Fabric
  • Metallic Wire Cloth- Phosphor Bronze Wire Cloth, Stainless Steel Wire Cloth
  • Pulp Mill Wire Cloth
  • Endless Diagonal Seam Covers
  • Dryer Screen
  • Dandy Rolls
  • Accessories
  • Auto Guides
  • Cleaning System
  • Watermarks
  • Water Filters   

Non Ferrous Wires:

  • Coated EDM Wires
  • Plain EDM Wires
  • Copper Alloy Wires
  • Phosphor Bronze Wires
  • Zipper Flat Wires
  • Tooth Brush Anchor Wires
  • Nickel Silver Wires
  • Brass Wires  

Achievements/ recognition:

  • Shalimar Wires is an ISO 9001-2000 certified company.
  • They are the first in India to produce Fourdrinier Wire Cloth for the Paper Industry. 
  • First in India to produce Forming Fabrics for the Paper Industry.
  • First in India to produce Dandy Rolls and its accessories.
  • First in India to produce EDM Wires through in-house Research & Development activity.
  • First in India to have their own Patented Brand of EDM Wires covering India and other parts of the world.
  • Shalimar Wires Industries Ltd. is recognized as an 'Export House' and has been awarded for 'Export Excellence' by the Government of India.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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