SHIVAMAUTO - Shivam Autotech

📊 NSE: SHIVAMAUTO 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 13:15

💰 Financial Performance

Revenue Growth by Segment

The company reported a total revenue decrease of 3.34% YoY, falling to INR 453.98 Cr in FY2024-25 from INR 469.66 Cr in FY2023-24. The automotive segment accounts for 97% of revenue, while non-automotive segments contribute the remaining 3%.

Geographic Revenue Split

Not disclosed in available documents, though the company emphasizes the locational advantage of its manufacturing facilities in India to serve major OEMs.

Profitability Margins

Net loss significantly widened to INR 34.72 Cr in FY23 from INR 16.06 Cr in FY22, driven by a surge in raw material and consumable costs. Net worth depletion due to continuous losses has led to a highly leveraged capital structure.

EBITDA Margin

PBILDT margin declined to 9.22% (INR 43.30 Cr) in FY24, down from 10.65% (INR 50.18 Cr) in FY23 and 15.19% in FY22. The margin compression is attributed to delayed funding for working capital, which restricted production in H1 FY24.

Capital Expenditure

Promoter entities infused INR 45.69 Cr during FY23 to support operations. The company also raised INR 25 Cr through Optionally Convertible Debentures (OCDs) in FY24, primarily for debt repayment and statutory dues rather than new capacity.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE BB- with a Negative outlook (revised from Stable). The company is highly leveraged with an overall gearing of 7.29x as of March 31, 2024, compared to 4.10x in FY23.

⚙️ Operational Drivers

Raw Materials

Steel and consumable stores are the primary raw materials, though specific percentage splits per material are not disclosed.

Capacity Expansion

The company is currently facing under-utilization of manufacturing capacities, leading to under-recovery of fixed costs. No specific MTPA expansion figures were provided, but the focus is on improving production efficiency to increase cash flows.

Raw Material Costs

Raw material costs led to a significant PBILDT margin drop from 15.19% to 10.65% in FY23. The company has low bargaining power with customers to pass on these volatile costs.

Manufacturing Efficiency

Production efficiency is a key focus area to improve cash flow from operations, as current under-utilization is a primary constraint on profitability.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through diversification into three-wheelers, four-wheelers, and commercial vehicles to reduce the 97% reliance on the automotive segment. The company is also raising funds (INR 25 Cr OCDs) to stabilize the working capital cycle and improve production uptime.

Products & Services

Gears, shafts, and precision-engineered components for two-wheelers, three-wheelers, four-wheelers, and commercial vehicles.

Brand Portfolio

Shivam Autotech.

New Products/Services

Venturing into non-automotive segments, which currently contribute 3% of revenue, with plans to expand this share.

Market Expansion

Targeting broader automotive segments (CVs and 4Ws) to mitigate segment-specific cyclicality.

Strategic Alliances

The company is part of the S.N. Munjal faction, maintaining a long-standing relationship with Hero MotoCorp Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward diversification across vehicle segments. Shivam Autotech is positioning itself by moving beyond its traditional 2W focus into 4W and non-auto components to ensure long-term sustainability.

Competitive Landscape

Operates in a highly competitive auto-component market with pressure from volatile input costs and large OEM customers.

Competitive Moat

The company's moat is built on its established relationship with Hero MotoCorp and its locational advantage. However, this is weakened by low bargaining power and high customer concentration.

Macro Economic Sensitivity

Highly sensitive to the cyclical nature of the Indian automotive sector and fluctuations in steel prices.

Consumer Behavior

Demand is driven by the cyclical recovery of the two-wheeler and commercial vehicle markets in India.

⚖️ Regulatory & Governance

Industry Regulations

Subject to standard automotive manufacturing standards and SEBI LODR regulations. A show cause notice was recently received from the Central GST Commissionerate, Dehradun.

Environmental Compliance

The company does not fall under the top 1000 listed companies by market cap for mandatory Business Responsibility Reporting, but it maintains basic environmental initiatives.

Legal Contingencies

A show cause notice from the Central GST Commissionerate, Dehradun, is a key monitorable; any adverse decision involving significant penalties could further stress the company's weak financial profile.