Shivam Autotech Limited (SHIVAMAUTO) AI Stock Analysis

• Market Cap: ₹2.14B
• Dividend Yield: N/A
• Average Volume (3M): 20.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• Revenue Growth: -11.18%
• EPS Growth: -22.17%
• Country: IN
• Employees: 803
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -1.87
• Shares Outstanding: 131,495,220
• 10 Day Avg. Volume: 4,338
• 30 Day Avg. Volume: 20,426
• PEG Ratio: 1.30
• Price to Book (P/B): 10.66
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 4.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹16.50 ▼(-29.34% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily pressured by weak financial performance (declining revenue, ongoing losses, and high leverage with shrinking equity). Technicals further detract due to a sustained downtrend across major moving averages and negative MACD, while valuation is also constrained by negative earnings and the absence of a dividend yield.

Positive Factors

Operating Cash Flow Resilience

Despite persistent net losses, Shivam Autotech has maintained relatively strong operating cash flows and an upward free cash flow trend. This durable cash-generation provides runway for working capital and measured capex, lowering short-term liquidity stress and enabling gradual operational stabilization even if profitability recovery is slow.

Stable Gross Margins

The company’s gross profit margin has held relatively steady, indicating consistent unit-level economics on machined and forged components. Stable gross margins suggest effective cost control in production and pricing stability on core products, which supports margin recovery potential if volumes normalize and helps preserve long-term product-level profitability.

OEM/B2B Supply Relationships

Shivam Autotech’s business model centers on contract manufacturing and repeat supply to OEMs and tier suppliers. These established B2B relationships create revenue stickiness, qualification barriers, and predictable order pipelines that support structural demand continuity and improve prospects for gradual revenue stabilization when industry cycles recover.

Negative Factors

Declining Revenue & Losses

Revenue has trended downward over recent years while the company remains loss-making. Persistent top-line decline and negative net income erode scale, reduce absorption of fixed costs, limit reinvestment capacity, and weaken competitive positioning, making sustainable operational turnaround more challenging without material revenue restoration.

High Leverage

The balance sheet shows significant leverage with a high debt-to-equity ratio and falling shareholders' equity. Elevated indebtedness increases interest and refinancing risk, strains financial flexibility, raises covenant vulnerability, and constrains the company’s ability to fund strategic investments or weather protracted demand weakness.

Material Negative Growth Metrics

Key fundamentals display sharp deterioration: double-digit revenue decline and severe EPS contraction. These structural declines signal weakening demand and margin pressure, reducing economies of scale and bargaining power with suppliers and customers, and increasing the challenge of restoring profitability without strategic shifts.

Shivam Autotech Limited Business Overview & Revenue Model

Company Description

Shivam Autotech Limited manufactures and sells auto transmission components primarily for original equipment manufacturers in India and internationally. It provides transmission gears and shafts; spline shafts; plungers; and power train, alternator, starter motor, magneto, and steering components, as well as various precision engineering components. The company was founded in 1999 and is headquartered in Gurugram, India. Shivam Autotech Limited is a subsidiary of Dayanand Munjal Investments Private Limited.

How the Company Makes Money

Shivam Autotech makes money by manufacturing and selling automotive components to customers in the automotive industry, primarily through B2B supply arrangements. Revenue is generated mainly from: (1) sales of precision components (such as machined and forged parts) supplied to automotive OEMs and their tiered supply networks; and (2) contract-based production where the company earns income by converting raw materials into finished components that meet customer specifications and quality standards. Earnings are influenced by production volumes, product mix (higher value-added machining/processing typically supports better realizations than lower value-added output), long-term supply relationships with OEM/tier customers, and the company’s ability to maintain cost efficiency in raw materials, energy, and manufacturing operations. null

Shivam Autotech Limited Financial Statement Overview

Summary

Income statement weakness (declining revenues and persistent net losses) and a leveraged balance sheet with declining equity outweigh the benefit of comparatively resilient operating/free cash flows.

Income Statement

Shivam Autotech has experienced declining revenues over the past few years, with a noticeable dip from 2020 to 2025. The company has struggled with profitability, as indicated by consistently negative net income, leading to negative net profit margins. Gross profit margin remains relatively stable, but the declining EBIT and EBITDA margins reflect operational challenges. Revenue growth is negative, indicating a downward trajectory in sales.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk if revenues continue to decline. Stockholders' equity has decreased over time, which affects the equity ratio negatively. The return on equity has been negative due to persistent losses. Stability is a concern given the high level of liabilities compared to equity.

Cash Flow

Despite challenges in profitability, Shivam Autotech has maintained relatively strong operating cash flows. The free cash flow shows an upward trend, reflecting some resilience in cash flow generation. However, the free cash flow to net income ratio is high due to negative net income, highlighting a potential risk if operating cash flows decrease.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.25B	4.54B	4.70B	4.70B	4.44B	4.67B
Gross Profit	484.49M	397.51M	1.31B	1.57B	1.80B	1.94B
EBITDA	381.67M	469.13M	441.10M	510.83M	754.44M	803.54M
Net Income	-566.98M	-480.42M	-501.86M	-348.38M	-160.60M	-225.26M
Balance Sheet
Total Assets	4.77B	5.16B	5.65B	6.56B	6.41B	7.34B
Cash, Cash Equivalents and Short-Term Investments	22.88M	9.56M	6.07M	586.86M	10.90M	617.20M
Total Debt	3.38B	3.39B	3.90B	4.28B	3.89B	4.89B
Total Liabilities	4.75B	4.84B	5.09B	5.52B	5.02B	6.21B
Stockholders Equity	17.61M	314.81M	555.93M	1.05B	1.39B	1.13B
Cash Flow
Free Cash Flow	202.33M	701.86M	270.82M	633.90M	599.82M	507.58M
Operating Cash Flow	214.41M	773.93M	329.31M	648.08M	649.21M	716.47M
Investing Cash Flow	-4.53M	-64.19M	-42.94M	-9.61M	-45.03M	-183.76M
Financing Cash Flow	-208.67M	-713.61M	-859.55M	-70.12M	-1.13B	-32.12M

Shivam Autotech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHIVAMAUTO, the sentiment is Negative. The current price of 23.35 is above the 20-day moving average (MA) of 18.45, above the 50-day MA of 20.41, and below the 200-day MA of 27.19, indicating a bearish trend. The MACD of -1.51 indicates Positive momentum. The RSI at 30.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHIVAMAUTO.

Shivam Autotech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAZDA	68 Neutral	₹3.61B	12.72	―	1.64%	―	―
REMSONSIND	63 Neutral	₹3.17B	20.06	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRITIKAUTO	58 Neutral	₹1.96B	11.02	―	―	26.03%	-10.27%
RACE	52 Neutral	₹1.82B	34.59	―	―	90.55%	20.25%
SHIVAMAUTO	45 Neutral	₹2.14B	-3.18	―	―	-11.18%	-22.17%

Shivam Autotech Limited Corporate Events

Shivam Autotech Cleared of ₹50 Crore GST Demand as Tax Authorities Drop Case

Shivam Autotech Limited has announced that the Central Goods and Services Tax (CGST) authorities in Dehradun have dropped proceedings related to a significant GST Show Cause Notice issued earlier this year. The Additional Commissioner has passed a closure order under Section 74 of the CGST Act, confirming a nil demand against the company and fully withdrawing the previously proposed tax demand of ₹50.10 crore and an equivalent penalty, plus interest, for alleged discrepancies between e-way bill data and reported GST returns for financial years 2018–19 to 2020–21. As a result, no financial or operational action is required from Shivam Autotech, removing a substantial potential liability and providing clarity and relief for stakeholders concerned about the impact of the tax dispute on the company’s finances.

Shivam Autotech Issues Corrigendum for Preferential Debenture Issue

Shivam Autotech Limited has issued a corrigendum to its postal ballot notice dated December 1, 2025, to address observations from the National Stock Exchange of India and BSE Limited regarding a proposed preferential issue. The company plans to issue unlisted, secured, redeemable, optionally convertible debentures to raise up to ₹120 crores, which will be used for repaying non-convertible debentures. This move could impact the company’s financial structure and stakeholder interests by potentially improving liquidity and financial stability.