Shivam Autotech Limited (SHIVAMAUTO) AI Stock Analysis

• Market Cap: ₹2.83B
• Dividend Yield: N/A
• Average Volume (3M): 20.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• Revenue Growth: -11.18%
• EPS Growth: -22.17%
• Country: IN
• Employees: 803
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.94
• 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: 47 Neutral
• Price Target: ₹21.00 ▼(-10.06% Downside)

The score is held down primarily by weak financial performance (declining revenues, ongoing losses, and high leverage), with only partial support from comparatively stronger operating/free cash flow. Technicals also remain bearish with the stock below key moving averages and a negative MACD. Valuation is constrained by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Cash flow resilience

Despite ongoing operating losses, rising free cash flow indicates the business can generate cash from operations. This provides a durable buffer to fund working capital, modest capex, and supplier obligations, extending runway while strategic fixes are implemented.

OEM-focused B2B business model

A direct supplier relationship to OEMs creates sticky, contract-driven demand and repeatable revenue streams tied to vehicle production. This structural positioning offers scale opportunities and deeper integration into customer supply chains over the medium term.

Higher value-added machining capability

Specialized machining and forging expertise enables the company to target higher-margin product segments versus commodity parts. Sustained focus on value-added manufacturing can improve realizations, differentiate the offering, and support margin recovery if executed consistently.

Negative Factors

Declining revenue trend

A multi-year revenue decline erodes scale and reduces fixed-cost absorption, making margins more vulnerable. Without a durable reversal in sales, the company risks reduced pricing power, weaker OEM negotiating leverage, and constrained ability to invest in product or capacity improvements.

Persistent net losses and negative margins

Ongoing losses deplete equity and limit retained earnings for reinvestment. Negative profitability undermines creditworthiness, increases dependency on external funding, and forces prioritization of turnaround actions over growth initiatives until margins sustainably improve.

High leverage on balance sheet

Significant leverage raises refinancing and solvency risk, especially in a cyclical auto supply chain. High liabilities relative to equity reduce financial flexibility, increase interest burden, and amplify downside if cash flows weaken, constraining strategic options over months.

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 Limited generates revenue through the manufacturing and sale of precision-engineered automotive components. The company's key revenue streams include supplying transmission gears, starter motors, and alternator components to major automobile manufacturers and OEMs. Additionally, the company's strategic partnerships with leading automobile brands and its focus on maintaining high standards of quality and innovation significantly contribute to its earnings. Shivam Autotech's ability to adapt to industry demands and trends, coupled with its efficient production capabilities, further enhances its financial performance.

Shivam Autotech Limited Financial Statement Overview

Summary

Weak fundamentals driven by declining revenues and persistent net losses, with deteriorating EBIT/EBITDA margins. Balance sheet leverage is high and equity has declined, increasing financial risk. Offsetting this, operating and free cash flow have remained relatively resilient, providing some near-term cushion.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.32B	4.54B	4.70B	4.70B	4.44B	4.67B
Gross Profit	289.88M	397.51M	1.31B	1.57B	1.80B	1.94B
EBITDA	406.05M	469.13M	441.10M	510.83M	754.44M	803.54M
Net Income	-553.65M	-480.42M	-501.86M	-348.38M	-160.60M	-225.26M
Balance Sheet
Total Assets	0.00	5.16B	5.65B	6.56B	6.41B	7.34B
Cash, Cash Equivalents and Short-Term Investments	9.56M	9.56M	6.07M	586.86M	10.90M	617.20M
Total Debt	0.00	3.39B	3.90B	4.28B	3.89B	4.89B
Total Liabilities	-314.81M	4.84B	5.09B	5.52B	5.02B	6.21B
Stockholders Equity	314.81M	314.81M	555.93M	1.05B	1.39B	1.13B
Cash Flow
Free Cash Flow	0.00	701.86M	270.82M	633.90M	599.82M	507.58M
Operating Cash Flow	0.00	773.93M	329.31M	648.08M	649.21M	716.47M
Investing Cash Flow	0.00	-64.19M	-42.94M	-9.61M	-45.03M	-183.76M
Financing Cash Flow	0.00	-713.61M	-859.55M	-70.12M	-1.13B	-32.12M

Shivam Autotech Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHIVAMAUTO, the sentiment is Neutral. The current price of 23.35 is above the 20-day moving average (MA) of 21.36, below the 50-day MA of 24.27, and below the 200-day MA of 28.64, indicating a neutral trend. The MACD of -1.33 indicates Negative momentum. The RSI at 47.42 is Neutral, neither overbought nor oversold. The STOCH value of 46.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹4.05B	15.91	―	1.64%	―	―
REMSONSIND	65 Neutral	₹3.79B	23.32	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRITIKAUTO	58 Neutral	₹2.17B	13.12	―	―	26.03%	-10.27%
RACE	51 Neutral	₹1.74B	28.10	―	―	90.55%	20.25%
SHIVAMAUTO	47 Neutral	₹2.83B	-4.92	―	―	-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.

Shivam Autotech Approves ₹45 Crore Debenture Allotment

Shivam Autotech Limited has announced the approval of the allotment of 4,500 secured, unlisted, unrated, redeemable Non-Convertible Debentures (NCDs) with a face value of ₹1,00,000 each, totaling ₹45 crore. This move is part of a private placement strategy aimed at raising funds, with the NCDs having a tenure of up to 36 months and offering a 10% annual interest rate. The issuance is expected to impact the company’s financial strategy by providing additional capital, potentially enhancing its market positioning and offering benefits to stakeholders through structured credit opportunities.

Shivam Autotech Publishes Postal Ballot Notice

Shivam Autotech Limited has announced the publication of a notice for the dispatch of a postal ballot notice in compliance with SEBI regulations. The notice was published in both English and Hindi editions of the Business Standard on December 2, 2025, and is available on the company’s website. This announcement is part of the company’s regulatory compliance efforts and ensures transparency and communication with its stakeholders.

Shivam Autotech Initiates Postal Ballot for Strategic Financial Resolutions

Shivam Autotech Limited has announced a postal ballot to seek shareholder approval for several special business resolutions. These include the issuance of unlisted, secured, redeemable, optionally convertible debentures on a preferential basis, granting special rights pursuant to an OCD subscription agreement, amending the articles of association, and revising borrowing limits under specific sections of the Companies Act. This move is aimed at strengthening the company’s financial structure and operational flexibility, potentially impacting its market position and stakeholder interests.

Shivam Autotech Limited Announces Strategic Fundraising and Governance Initiatives

Shivam Autotech Limited’s board has approved several strategic initiatives during its meeting on November 29, 2025. The company plans to raise funds through the issuance of up to 12,000 optionally convertible debentures (OCDs), subject to shareholder and regulatory approvals. Additionally, the board has approved granting special rights to Alpha Alternative Structured Credit Opportunities Fund and proposed amendments to the Articles of Association. These decisions are aimed at strengthening the company’s financial position and operational flexibility, potentially impacting its market standing and stakeholder interests.