Shalimar Paints Limited has informed the Exchange about Credit Rating

Rating DowngradedRating JunkNew Credit FacilityCredit & Debt View source PDF Explain this filing

SHALPAINTS · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reactionminutes from the announcement price · days from the prior close

-2.0%Reaction day

₹98.95

prior close

₹97.90

announcement price

In-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used+0.5%-2.5% vs market

Paints peers, median of 8sector-0.2%-1.8% vs sector

On the reaction day the stock moved 2.5 pts less than Nifty Microcap 250 and 1.8 pts less than its Paints peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

-0.2

10m

+0.0

15m

+0.1

30m

+0.0

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-2.0+0.5-2.5-0.2-1.8

Next day

+0.6+1.0-0.5-0.5+1.0

-0.3+1.0-1.2+0.7-1.0

+0.9+2.4-1.4+1.0-0.1

+2.1+3.1-1.0+1.9+0.2

+2.2+3.6-1.4+1.9+0.3

+1.5+1.7-0.2-1.0+2.5

15d

-1.2+1.8-2.9-0.8-0.4

-3.0+3.6-6.6+5.1-8.1

-20.9+1.0-21.9+10.3-31.2

-26.5+0.5-27.0+6.2-32.7

UpDownMarket · Nifty Microcap 250Sector · Paints peers, median of 8Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

CARE Ratings has downgraded Shalimar Paints' long-term bank facilities of ₹127.38 crore from CARE BBB- (Negative) to CARE BB+ (Negative), and combined long-term/short-term facilities of ₹77 crore from CARE BBB-/A3 to CARE BB+/A4+. Short-term facilities of ₹0.67 crore were also cut from CARE A3 to CARE A4+. A new rating of CARE BB+ (Negative) was assigned to proposed non-convertible debentures of ₹70 crore. The downgrade is driven by sustained operating losses in FY25 (PBILDT loss of ₹56.48 crore, net loss of ₹80.11 crore) despite 12% revenue growth to ₹599.25 crore, weak debt coverage, and intense competition in the paints industry. The outlook remains Negative, with further downside risks flagged if losses continue or promoter support weakens.

Likely market impact

Negative for shareholders — the move from BBB- to BB+ pushes the company into speculative-grade (junk) territory, signaling higher financial risk. This could raise future borrowing costs, weigh on stock sentiment, and raise concerns about the company's ability to service debt without continued promoter support from Hella Infra Market.