Key Events This Week
2 Feb: Stock opens at Rs.20.60 amid broad market weakness
3 Feb: Recovery with 3.11% gain as Sensex rallies
4 Feb: Strong 7.49% jump following market optimism
5 Feb: Quarterly results reveal sharp losses; stock dips 2.32%
6 Feb: Stock stabilises, closing marginally down at Rs.22.27
2 February: Weak Start Amid Market Downturn
Shivam Autotech began the week on a subdued note, closing at Rs.20.60, down 4.32% from the previous Friday’s close of Rs.21.53. This decline was sharper than the Sensex’s 1.03% drop to 35,814.09, reflecting early investor caution. The low volume of 473 shares traded suggested limited buying interest amid broader market weakness. The stock’s underperformance on this day foreshadowed the volatility that would characterise the week.
3 February: Market Rally Spurs Recovery
On 3 February, the stock rebounded strongly, gaining 3.11% to close at Rs.21.24, supported by a robust Sensex rally of 2.63% to 36,755.96. The surge in volume to 4,685 shares indicated renewed investor interest. This recovery aligned with positive market sentiment, although the stock remained below its previous week’s close. The bounce suggested short-term optimism despite underlying company challenges.
4 February: Sharp Gains Amid Positive Momentum
Shivam Autotech’s most notable price movement occurred on 4 February, when it surged 7.49% to Rs.22.83, its weekly high. This gain outpaced the Sensex’s modest 0.37% rise to 36,890.21. The volume peaked at 7,235 shares, reflecting strong buying interest. The rally appeared driven by broader market momentum and speculative positioning, as no company-specific positive news was reported prior to the day’s close.
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5 February: Quarterly Results Trigger Sell-Off
The release of Shivam Autotech’s quarterly results on 5 February marked a turning point. The company reported a sharp 9.4% decline in net sales to ₹96.18 crores and a 65.1% plunge in profit after tax, registering a loss of ₹23.41 crores. Operating margins contracted to 5.25%, and the interest coverage ratio deteriorated to a precarious 0.27 times. The debt-to-equity ratio surged to 192.05 times, highlighting severe financial leverage. These distressing fundamentals led to a 2.32% drop in the stock price to Rs.22.30, underperforming the Sensex’s 0.53% decline. Volume moderated to 1,841 shares as investors digested the negative news.
6 February: Valuation Concerns Weigh on Price
On the final trading day of the week, Shivam Autotech’s stock marginally declined by 0.13% to Rs.22.27, while the Sensex inched up 0.10% to 36,730.20. The day’s volume was subdued at 774 shares. Market focus shifted to the company’s deteriorating valuation metrics, with a negative price-to-earnings ratio of -4.29 and an inflated price-to-book value of 166.46. Enterprise value multiples also signalled distress, with EV to EBIT at -136.08 and EV to EBITDA elevated at 21.81. These valuation shifts underscored heightened risk perceptions despite the stock’s modest weekly gain.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.20.60 | -4.32% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.21.24 | +3.11% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.22.83 | +7.49% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.22.30 | -2.32% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.22.27 | -0.13% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: The stock outperformed the Sensex with a 3.44% weekly gain versus the benchmark’s 1.51%, supported by strong intraday rallies on 3 and 4 February. Improved debtors turnover ratio at 9.00 times indicates better receivables management, offering some operational relief.
Cautionary Signals: The quarterly results revealed a sharp deterioration in financial health, with a 65.1% plunge in PAT and a dangerously high debt-to-equity ratio of 192.05 times. Valuation metrics have shifted to a risky profile, with negative P/E and inflated P/BV ratios signalling market concerns over profitability and solvency. The Mojo Grade remains at Strong Sell, reflecting elevated risk.
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Conclusion
Shivam Autotech’s week was characterised by a volatile price trajectory that ultimately delivered a modest gain outperforming the Sensex. However, the underlying financial and valuation challenges remain significant. The sharp quarterly losses, deteriorating margins, and ballooning debt levels highlight operational and financial risks that continue to weigh on the stock’s outlook. The market’s reaction, reflected in the negative P/E and elevated P/BV ratios, signals heightened uncertainty. While short-term rallies have provided some respite, the Strong Sell Mojo Grade and weak fundamentals suggest that caution remains warranted. Investors should closely monitor upcoming results and any signs of operational turnaround before reassessing the stock’s prospects.
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