Shalimar painted deep red

Shalimar Paints is a deep hue of red today. The stock which opened at Rs.60, has since then slumped down 3.35%  at Rs.57 levels, inching closer to its 52-week low of Rs.55. Market cap is at Rs.109 crore.

The stock is down in the red on the back of its not-so-good Q1FY14 performance. The company posted a 42% (YoY) drop in its net profit at Rs.2 crore on a 11% drop in total revenue at Rs.109 crore.

This is one of the oldest paint companies of India and the stock, a few months ago was in the news on the buzz of stake sale. But the company soon issued a clarification stating that it was looking at selling out. Since then, the stock performance has been lackluster. As such, seasonally, it is the second half which does well for paint companies and Q2 is especially weak given the monsoon season.