Shivalic Power Control Limited

Sector n/a · NSE

₹327.35+₹0.15 (+0.05%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

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

How does it make money?

Turns over ₹155 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 13.3% 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.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +89% while net margin moved -13% 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+89%

Margin effect-13%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.4% is weak
✗ ROE has fallen by 19.8 points over the period

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

18/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

40.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 29.2% to 9.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.9% to 13.3% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 61% over 3 years, from ₹24 Cr to ₹38 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 338% against revenue up 89% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 221% against revenue up 89% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 3.2 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 16.0% to 12.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 338% against revenue up 89%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 29.2% to 9.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
4 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

1Revenue growth stays above 18% a year✓ 23.7% CAGR
Latest reported year was 17.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹25 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹789 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

9.4%

Moderate

Moderate capital efficiency

ROCE

13.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

17.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-5.2%

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

-₹25 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

23.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

3.10

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

65.2 / 63.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹82 Cr	₹102 Cr	₹132 Cr	₹155 Cr	+23.7%
EBITDA	₹13 Cr	₹20 Cr	₹21 Cr	₹20 Cr	+14.7%
EBITDA Margin	16.0%	19.5%	15.5%	12.8%	—
PAT (Net Profit)	₹7 Cr	₹11 Cr	₹12 Cr	₹12 Cr	+18.0%
EPS	₹2.97	₹4.65	₹5.5	—	—
ROE	29.2%	27.2%	11.0%	9.4%	—
ROCE	34.9%	38.9%	15.7%	13.3%	—
Total Debt	₹24 Cr	₹32 Cr	₹5 Cr	₹38 Cr	+17.2%
Free Cash Flow	₹4 Cr	-₹10 Cr	-₹11 Cr	-₹25 Cr	—

🟢 Revenue has grown at 23.7% a year over 3 years.

🟢 EBITDA has grown at 14.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.0% to 12.8% over 3 years (-3.2 pts).

🟢 PAT (Net Profit) has grown at 18.0% a year over 3 years.

🔴 ROE has fallen from 29.2% to 9.4% over 3 years (-19.8 pts).

🔴 ROCE has fallen from 34.9% to 13.3% over 3 years (-21.6 pts).

🔴 Total Debt has grown at 17.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹25 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹190 Cr

Total Liabilities

₹59 Cr

Cash & Equivalents

₹20 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹2 Cr

Recent News

1 mixed1 negative4 general

Earnings Troubles May Signal Larger Issues for Shivalic Power Control (NSE:SPCL) Shareholders

Simply Wall Street, 08 JunResults

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

Shiv & Associates resigns as Shivalic Power Control statutory auditor

scanx.trade, 22 JunManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Shivalic Power Control Slides As Insider Purchases Lose Another ₹14m

Simply Wall Street, 21 Nov

Shivalik Bimetal Controls Ltd leads gainers in 'B' group

Business Standard, 07 Aug

SPCL Stock Price and Chart — NSE:SPCL

TradingView, 16 Dec

Multibagger debut! Shivalic Power Control shares list at 211% premium over IPO price

The Economic Times, 01 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Valuation

WeakProfitability · 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. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑