a micro-cap Penny Stock paper trading company listed on Indian stock exchanges, currently trading around ₹0.50–₹0.53 per share, with a market capitalization of approximately ₹30–32 crore. Despite operating in a steady industry, the company carries extremely high financial risk, driven by persistent losses, negative net worth, and nearly fully pledged promoter holdings. This article provides a detailed overview of the company, its financials, market position, and risk factors to help investors understand the speculative nature of SHRENIK.
Company Overview
Shrenik Limited is a Penny Stock who trades and processes paper, pulp, and paper boards, distributing a wide range of products including coated, uncoated, copier, and specialty papers across Gujarat, Rajasthan, and Maharashtra. The company also acts as a wholesale distributor for major paper brands.
Operating under the Materials sector, Paper Products sub-sector on Indian exchanges, Shrenik focuses primarily on domestic markets with a retail-heavy shareholder base and minimal institutional participation.
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Penny Stock Share Price and Market Data
- Current Trading Range: ₹0.50–₹0.55
- 52-Week Range: ₹0.92 / ₹0.46
- Market Capitalization: ₹30–32 crore
Shrenik’s share price reflects penny-stock volatility, with low liquidity and limited institutional coverage. The narrow market cap highlights the small size of the company and constrained trading activity.
Key Financial Highlights
Revenue and Profitability
- Revenue has contracted sharply over the last five years.
- FY24 and FY25 reported deep operating losses with negative margins.
- Book value per share is negative, around ₹-2.88, indicating eroded net worth.
- Q1 FY26 (June 30, 2025):
- Revenue: ~₹6.2 crore
- Sales: ₹5.83–₹5.826 crore
- Net Loss: ~₹0.72 crore YoY
Although revenue increased in Q1 FY26, profitability remains elusive, keeping the equity in a stressed financial state.
Balance Sheet and Leverage
- Negative book value reflects accumulated losses and a weak balance sheet.
- Liabilities have historically exceeded shrinking assets, compounding financial fragility.
- Promoter pledging is near 99.9%, an alarming risk as any price decline could trigger lender actions.
Shareholding and Governance
- Promoter Holding: ~25.38%
- Promoter Pledge: ~99.9%
- Retail Investors: Majority holders
- FIIs/DIIs: Minimal participation
Recent disclosures in July 2025 included Q1 FY26 results, compliance filings, and a cessation of the Company Secretary, reflecting ongoing regulatory adherence but operational uncertainty due to frequent leadership changes.
Peer Comparison
Compared with listed paper peers like JK Paper and West Coast Paper:
- Shrenik’s fundamentals are materially weaker.
- Peers typically have positive ROCE, consistent profitability, and dividends, while Shrenik faces persistent losses and negative net worth.
- Sector median valuations and profitability metrics are not comparable, due to Shrenik’s distressed micro-cap status and penny-stock dynamics.
Risk Factors
- Near-total promoter pledge (~99.9%) increases the risk of forced selling or loss of control.
- Multi-year sales decline, negative operating margins, and negative net worth threaten company survival.
- Liquidity constraints and high volatility increase downside risk for traders.
Potential Triggers to Watch
- Revenue recovery with positive operating margins.
- Reduction in promoter pledge to decrease financial stress.
- Balance sheet repair and restoration of net worth.
Until these triggers are achieved, SHRENIK remains a speculative equity.
Technical and Trading Considerations
- Current price near 52-week low suggests weak market sentiment.
- Penny-stock volatility can lead to high slippage and sudden price movements.
- Historical returns indicate steep drawdowns over 1–5 years, reflecting fundamental stress.
Bottom Line
Shrenik Ltd is a high-risk, speculative penny stock:
- Persistent losses and negative net worth
- Nearly fully pledged promoter holdings (~99.9%)
- Micro-cap status with low liquidity and high volatility
Only risk-tolerant traders should consider it as a speculative position. Fundamental investors should wait for clear turnaround signs, including profitable quarters, pledge reduction, and balance sheet repair, before reassessing its potential.
Top 10 FAQs About Shrenik Ltd (SHRENIK)
1. What does Shrenik Ltd do?
Trades and processes paper, pulp, and paper boards, distributing coated, uncoated, copier, and specialty papers across Gujarat, Rajasthan, and Maharashtra.
2. What is the current share price and 52-week range?
Trading around ₹0.50–₹0.53, with a 52-week high/low of ₹0.92/₹0.46.
3. What is Shrenik’s market capitalization?
Approximately ₹30–32 crore, indicating micro-cap status and low liquidity.
4. Is Shrenik profitable now?
No; Q1 FY26 showed a net loss of ~₹0.72 crore, despite higher revenues.
5. Why is the book value negative?
Accumulated losses have eroded net worth, resulting in a negative book value per share (~₹-2.88).
6. How much promoter holding is pledged?
Nearly 99.9%, a significant risk factor.
7. What is the promoter shareholding?
Around 25.38%; retail investors hold the majority of remaining shares.
8. What were the latest results?
Q1 FY26: Revenue ~₹6.2 crore, sales ~₹5.83–5.826 crore, net loss ~₹0.72 crore.
9. How risky is SHRENIK as a penny stock?
Extremely high due to negative net worth, persistent losses, and almost total promoter pledge.
10. What should investors monitor next?
Sustained operating profitability, revenue recovery, net profit, pledge reduction, and positive book value restoration.