S H Kelkar and Company Ltd (SHK) shares dropped more than 7% after reporting operational updates for Q3 FY2025.
Despite a 17% year-on-year revenue growth for the nine months ending December 31, 2024, the company faces significant margin pressures. Gross margins were hit by supply chain issues and rising raw material costs, although price adjustments have been made to mitigate the impact.
SHK’s strategic investments in new Development Centres in Europe and the US are expected to boost future revenue, but these initiatives, along with inventory replenishment, have added to the company’s net debt of ₹700 crore. While demand remains steady in key markets, domestic demand shows signs of slowdown, and margin challenges are expected to persist through Q4 FY2025.
S H Kelkar shares opened at ₹251.44, reaching a high of ₹251.90 and a low of ₹227.53 during the session. With a 52-week high of ₹336.25 and a low of ₹161.55, the stock shows notable volatility.
As of 9:59 AM, S H Kelkar shares were trading 7.42% lower at Rs 229.36.
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