Shivam Autotech Faces Financial Struggles Amid High Debt and Declining Sales

Shivam Autotech, a microcap player in the auto ancillary industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 28.55. This decline marks a notable underperformance, with the stock down 3.53% compared to its sector peers. Over the past three days, Shivam Autotech has seen a cumulative drop of 13.14%, reflecting a bearish trend that has persisted since early February.
The company's financial health raises concerns, particularly with a high debt-to-equity ratio of 6.89 times, indicating substantial leverage. Over the last five years, Shivam Autotech has reported a decline in net sales at an annual rate of 6.11%, alongside a decrease in operating profit by 7.92%. The latest quarterly results show net sales at Rs. 112.74 crore, the lowest in recent times.

In terms of technical indicators, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a persistent bearish sentiment. With a one-year performance of -22.71%, Shivam Autotech continues to face challenges in both short-term and long-term growth metrics.