Shivam Autotech Limited

Consumer Cyclical — Auto Parts · NSE

₹16.64−₹0.33 (−1.94%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shivam Autotech Limited engages in the manufacture and sale of auto transmission components for original equipment manufacturers in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees749

Annual revenue₹391 Cr

How does it make money?

Turns over ₹391 Cr a year. Of every ₹100 of sales, about ₹-21 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 749 employees supports ₹52.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹52.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. 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 -2.8% 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 ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -11% while net margin moved +163% 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-11%

Margin effect+163%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

21.2x

PEG

—

Red Flags

6 items require attention · 3 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹81 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.2x to -0.1x.
🟡Margins are compressingFinancial
EBITDA margin is down 3.6 points over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.76 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 11.6% to 8.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 12.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 6%✓ 8.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 12.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -0.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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 · 4 neutral · 5 weak

Market Cap

₹262 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-7.39

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-2.8%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

20.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-69.3%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-0.5%

Weak

Thin margins leave little room for error

Net Margin

-19.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.76

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

16.4 / 16.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹440 Cr	₹447 Cr	₹430 Cr	₹391 Cr	-3.8%
EBITDA	₹51 Cr	₹44 Cr	₹44 Cr	₹31 Cr	-15.0%
EBITDA Margin	11.6%	9.8%	10.1%	8.0%	—
PAT (Net Profit)	-₹35 Cr	-₹50 Cr	-₹48 Cr	-₹81 Cr	—
EPS	₹-2.84	₹-4.11	₹-3.89	₹-6.19	—
ROE	-33.2%	-90.3%	-152.6%	—	—
ROCE	4.8%	3.3%	6.5%	-2.8%	—
Total Debt	₹428 Cr	₹390 Cr	₹339 Cr	₹403 Cr	-2.0%
Free Cash Flow	₹63 Cr	₹27 Cr	₹70 Cr	₹1 Cr	-77.6%

🔴 Revenue has shrunk at 3.8% a year over 3 years.

🔴 EBITDA has shrunk at 15.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.6% to 8.0% over 3 years (-3.6 pts).

🔴 ROCE has fallen from 4.8% to -2.8% over 3 years (-7.6 pts).

🟡 Total Debt has been broadly flat over 3 years (-2.0% a year).

🔴 Free Cash Flow has shrunk at 77.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹469 Cr

Total Liabilities

₹510 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.9%

Corporate Actions

Ex-Dividend Date

20 Sept 2016

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed4 general

Dividend, rights issue record date: Last chance to buy today - Shivam Autotech, Shraddha Prime, Anand Rathi Wealth

Livemint, 13 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Shivam Autotech (SHIVAMAUTO) Share Price Rises 8.23% as Stock Trades at Rs 19.59

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Shivam Autotech (SHIVAMAUTO.NS) Climbs 8.55% to ₹18.28 as Auto Ancillary Counter Approaches Resistance - Retail Driven Moves

https://www.siam.in/, 12 Oct

Shivam Autotech files LOF for ₹1,200 crore rights issue at ₹12 per share

scanx.trade, 05 Oct

Shivam Autotech Share Price and Chart Analysis

Kalkine India, 18 Sept

N K Industries Ltd leads losers in 'B' group

Business Standard, 21 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Shivam Autotech Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑