Shivagrico Implements Limited

Industrials — Tools & Accessories · BSE

₹19.00+₹0.11 (+0.58%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Shivagrico Implements Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shivagrico Implements Limited engages in the rolling and forging of agricultural implements and other products in India and internationally.

IndustryTools & Accessories

SectorIndustrials

Employees247

Annual revenue₹44 Cr

How does it make money?

Turns over ₹44 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 247 employees supports ₹18.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹18.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +15% while net margin moved +233% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+15%

Margin effect+233%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.12x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.03 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.7x — little room if profits dip

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

21.3x

3Y Median

116.0x

40 monthly readings · mean 110.5x · range 24.7x–258.6x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 82% below its 3y median of 116.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 76% below the peer median of 88.8x.

vs. its own history

Cheap

116.0x median over 40 months · -82%

vs. sector peers

Cheap

88.8x median of 3 peers · -76%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.3x

PEG

0.38

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 1.4% to 4.7%.
Return on capital is rising
ROCE has improved from 10.4% to 14.9%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.12x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 39% against revenue up 15% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 82% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 76% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 39% against revenue up 15%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✓ 4.6% CAGR
Latest reported year was -0.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.15x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.89

Profitable

Profitable on a per-share basis

ROE

4.7%

Weak

Weak capital efficiency

ROCE

14.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.12x

High

High leverage

Revenue Growth (YoY)

-0.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

2.2%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.1%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.03

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

20.4 / 22.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹39 Cr	₹40 Cr	₹41 Cr	₹44 Cr	+4.6%
EBITDA	₹2 Cr	₹3 Cr	₹3 Cr	₹3 Cr	+10.6%
EBITDA Margin	6.2%	6.4%	7.5%	7.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+56.2%
EPS	₹0.2	₹0.14	₹0.75	₹0.77	+56.7%
ROE	1.4%	1.0%	4.8%	4.7%	—
ROCE	10.4%	11.1%	14.6%	14.9%	—
Total Debt	₹17 Cr	₹19 Cr	₹16 Cr	₹18 Cr	+1.1%
Free Cash Flow	₹3 Cr	-₹2 Cr	₹3 Cr	-₹1 Cr	—

🟢 Revenue has grown at 4.6% a year over 3 years.

🟢 EBITDA has grown at 10.6% a year over 3 years.

🟢 EBITDA Margin has risen from 6.2% to 7.4% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 56.2% a year over 3 years.

🟢 EPS has grown at 56.7% a year over 3 years.

🟢 ROE has risen from 1.4% to 4.7% over 3 years (+3.3 pts).

🟢 ROCE has risen from 10.4% to 14.9% over 3 years (+4.5 pts).

🟡 Total Debt has been broadly flat over 3 years (1.1% a year).

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28 Cr

Total Liabilities

₹20 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.3%

Corporate Actions

Ex-Dividend Date

12 Sept 1995

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

Half Yearly Results, Half yearly Earnings for Shivagrico Implements

The Economic Times, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Shivagrico Implements Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

Shivagrico Implements (BSE: 522237) - Metal Fabrication and Farm Implements Overview

Kalkine India, 16 Sept

Shivagrico Implements passes all 47th AGM resolutions with majority

scanx.trade, 20 Aug

Shivagrico Implements Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Bldg-Hand Tools IN | Stock Share Price Live

MarketSmith India, 30 May

Watch Items

Revenue growth is negative (-0.7%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Growth · Profitability

WeakFinancial Health · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑