Missed buying Asian Paints share during their initial days? Or, wanted to buy Berger paints share when their marketcap was very low? Looking for an alternative? Is Shalimar Paints the one? Is it a good paints company to buy shares of? We will answer all of that. Keep reading.
It’s never simple to predict the future, but in the case of Shalimar Paints, the data points to possible expansion and opportunity.
Shalimar Paints has been around for more than a century and has persevered through economic and commercial changes to become a major force in the Indian paint business.
So what does the future have in store for this legendary business?
This article will investigate Shalimar Paints’ share price objective from 2023 to 2030, examine the company’s growth prospects, and address the burning issue on every investor’s mind: Is Shalimar Paints a good stock to buy?”
What is Shalimar Paints?
Shalimar Paints, listed as BSE: 509874, is a company in India that specializes in the production and promotion of decorative paints and industrial coatings. They are responsible for painting numerous prominent structures and landmarks in India, including the Howrah Bridge, Rashtrapati Bhawan, Salt Lake Stadium, and All India Institute of Medical Sciences, among others.
Latest news about Shalimar Paints Ltd
- The parent company of Infra.Market plans to invest Rs270 crore in Shalimar Paints. Effective from July 1, 2023.
- Davinder Dogra has been appointed as the CFO of Shalimar Paints.
- In March 2023, Shalimar Paints recorded standalone net sales of Rs135.83 crore, marking a 28.7% year-on-year increase.
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Shalimar Paints is up by 14.72% YTD (as of 8th July, 2023). Currently, Shalimar Paints is trading at Rs.152.00 with a marketcap of Rs.1.10TCr. The growth percentage appears to be bullish, as the predicted maximum price tends to increase over time, indicating an uptrend in the market.
The company however is in losses.
With Davinder Dogra coming in as CFO in July 2023, could bring some positive results for the bank.
Shalimar Paints highest predicted maximum price is ₹169.87 in December 2023, while the lowest predicted minimum price is ₹132 in January 2023.
Even though Shalimar paints is not profitable from the last few quarters or even years, analysts are optimistic for Shalimar Paints in 2023, with a potential for significant growth in the market.
Investors should perform further research and analysis before making any investment decisions.
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The table above represents the predicted share price targets for Shalimar Paints in 2024.
It shows the maximum and minimum price targets for each month. The highest predicted maximum price target is ₹220.77 in December 2024, while the lowest predicted minimum price target is ₹129.33 in May 2024.
The return on investment for the year 2024 may depend on the price at which the investor buys and sells the shares.
Shalimar Paints Bank
Share Price Target 2025
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Shalimar paints highest predicted maximum price target for 2025 is ₹267.80 which is expected to be reached by December 2025, while the lowest predicted minimum price target is ₹155.40 for May 2025.
For anyone wanting to hold Shalimar Paints for long term, it is recommended that investors may consider investing in Shalimar Paints for a potential upside.
However, it would be better to buy the share once the company posts some positive earnings for multiple quarters.
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According to the projected share price targets for Shalimar Paints from 2026 to 2030, there is a range of potential prices for each year. In 2026, the share price is estimated to reach a maximum of ₹298.88 and a minimum of ₹209.22. Moving to 2027, the price range is expected to be between ₹254.05 and ₹177.83. The year 2028 shows a significant increase in the projected share price, with a maximum target of ₹457.29 and a minimum of ₹320.10. Looking further ahead, 2029 forecasts a maximum price of ₹939.34 and a minimum of ₹657.54. Finally, in 2030, the share price is anticipated to reach a maximum of ₹1,046.09 and a minimum of ₹732.26. These projections provide an indication of the potential growth and fluctuations in Shalimar Paints’ share price over the next few years. It is important to note that these figures are based on estimates and may be subject to various market factors and uncertainties.
- Shalimar Paints has experienced mostly negative earnings since 2012.
- The stock is currently trading at a price 3.14 times higher than its book value.
- The company has a low interest coverage ratio.
- Over the past 3 years, Shalimar Paints has had a negative return on equity of -15.4%.
- The promoter holding has decreased by -13.2% in the last 3 years.
- Furthermore, the working capital days have increased from 88.0 days to 150 days.
Financial Condition of Shalimar Paints Ltd: Last 5 years
Looking at Shalimar Paints Ltd’s financial statement for the last five years, it is evident that the company has faced various ups and downs. The revenue growth of the company has been fluctuating with a maximum of 343.85 crores in the year 2020 and a minimum of 271.19 crores in the year 2018.
Similarly, the company’s net profit and loss has also witnessed a volatile trend, with a minimum losses of Rs.38.18 crores in 2020 and a maximum losses of 81.78 crores in 2019.
However, there has been a noticeable improvement in the company’s operating profit in the last two years, from negative 33.53 crores in 2020 to negative 22.47 crores in 2022.
The EPS of the company has also improved from -15.26 in 2019 to -8.9 in 2022.
Sharekhan on Shalimar Paints Ltd share price target
Sharekhan has given a buy call on Shalimar Paints Ltd. According to him, you can continue buying Shalimar Paints Ltd share with a target price of Rs170.
Motilal Oswal on Shalimar Paints Ltd share price target
Motilal Oswal has given a buy call on Shalimar Paints Ltd. According to him, you can continue buying Shalimar Paints Ltd share with a target price of Rs187.
As of July 7 2023, the current share price of Shalimar Paints Ltd is ₹152.
Based on the data provided, the maximum target share price for Shalimar Paints Ltd for the year 2025 is ₹426.97 and the minimum target share price is ₹272.55.
Based on the data provided, the maximum target share price for Shalimar Paints Ltd for the year 2030 is ₹1,046.09 and the minimum target share price is ₹657.54.
We do not think Shalimar Paints Ltd can reach a share price of ₹1000 by 2025. However, the maximum target share price for 2025 is ₹426.97, which is still a significant increase from the current share price.
Is Shalimar Paints Ltd a good investment opportunity?
I would say, it could be a good investment opportunity, as the company is extremely small in marketcap. However, since it is not making profits, I would avoid buying Shalimar Paints share in 2023.
Has Shalimar Paints Ltd shown consistent revenue growth in the past?
Based on the data provided, Shalimar Paints Ltd has shown consistent revenue growth over the past five years, with a 68.75% increase in sales from 2019 to 2023. However the company, as of July 2023, is still not profitable.
Has Shalimar Paints Ltd shown consistent profit growth in the past?
Shalimar Paints limited has been posting negative results year on year. It is a loss making company.
ALSO READ MORE PAINTS COMPANY SHARE PRICE TARGET:
- What is the Indigo Paints Share Price Target for 2030?
- Asian Paints Share price target till 2030
- What is the Berger Paints Share price Target for 2025?
Personal opinion: Should you invest in Shalimar Paints?
Because Shalimar Paints is a loss making company, I would not invest my money in Shalimar paints, and as of now, it is not a better alternative to Asian paints or Berger Paints. It is better to put one’s money in a company which is bringing profits year on year. I would certainly avoid investing my money in Shalimar Paints at this point, until the company shows sign of profitability which at this point is clearly missing. My recommendation would be to avoid buying Shalimar Paints shares, but this is no way a financial advise. Please consider connecting with a financial advisor before investing in any stocks.
Disclaimer: I do not hold Shalimar Paints in my portfolio, but do hold Asian paints, Indigo Paints and Berger Paints.
What did we learn?
- 1 What is Shalimar Paints?
- 2 Latest news about Shalimar Paints Ltd
- 3 How to purchase Shalimar Paints Ltd shares?
- 4 Shalimar Paints Ltd Share Price Prediction: 2023 to 2030
- 5 What I do not like about Shalimar Paints share price?
- 6 Financial Condition of Shalimar Paints Ltd: Last 5 years
- 7 Shalimar Paints Ltd share price target by Experts
- 8 FAQS
- 8.1 What is the current share price of Shalimar Paints Ltd?
- 8.2 What is the target share price for Shalimar Paints Ltd for the year 2025?
- 8.3 What is the target share price for Shalimar Paints Ltd for the year 2030?
- 8.4 Can Shalimar Paints Ltd reach a share price of ₹1000 by 2025?
- 8.5 Is Shalimar Paints Ltd a good investment opportunity?
- 8.6 Has Shalimar Paints Ltd shown consistent revenue growth in the past?
- 8.7 Has Shalimar Paints Ltd shown consistent profit growth in the past?
- 9 Personal opinion: Should you invest in Shalimar Paints?