Recent Price Movement and Market Context
On 29 Dec 2025, Shivam Autotech Ltd’s stock touched an intraday low of Rs.21.36, representing an 8.52% decline on the day and a 7.28% drop in the latest trading session. This move extended the stock’s losing streak to two consecutive days, during which it has shed 14.55% in value. The stock’s performance today notably lagged behind the Auto Components & Equipments sector, underperforming by 8.17%.
In comparison, the Sensex opened flat but traded slightly lower by 0.14%, standing at 84,926.56 points, just 1.45% shy of its 52-week high of 86,159.02. The benchmark index remains supported by bullish moving averages, with the 50-day moving average positioned above the 200-day average, signalling overall market resilience contrasting with Shivam Autotech’s weakness.
Technical Indicators Highlight Bearish Trends
Technically, Shivam Autotech is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across short, medium, and long-term technical indicators underscores the stock’s bearish momentum and lack of near-term support levels.
Financial Performance and Fundamental Concerns
The company’s financial health continues to raise concerns. Shivam Autotech carries a notably high debt burden, with a debt-to-equity ratio soaring to 190.74 times as per the latest half-year data, reflecting a precarious capital structure. This elevated leverage contributes to a weak long-term fundamental strength rating.
Over the past five years, the company’s net sales have declined marginally at an annual rate of -0.18%, while operating profit has contracted at a steeper pace of -7.92% annually. The recent half-year results showed flat revenue growth, with a return on capital employed (ROCE) at a low 1.15%, signalling limited efficiency in generating returns from capital invested.
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Valuation and Profitability Metrics
Shivam Autotech’s valuation metrics reflect the challenges faced by the company. The stock trades at an enterprise value to capital employed ratio of 1.9, which is considered expensive given the company’s low ROCE of 0.6%. Profitability has also deteriorated, with reported profits falling by 29.4% over the past year.
Return on equity (ROE) remains negative due to losses reported by the company, further highlighting the difficulties in generating shareholder value. The average debt-to-equity ratio over recent years stands at 2.68 times, reinforcing the company’s high leverage profile.
Long-Term and Recent Performance Comparison
Over the last 12 months, Shivam Autotech’s stock has delivered a total return of -52.57%, significantly underperforming the Sensex’s positive 7.91% return over the same period. The stock has also lagged behind the broader BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating sustained underperformance relative to the market.
The 52-week high for the stock was Rs.50, illustrating the steep decline to the current 52-week low of Rs.21.36. This represents a drop of over 57% from the peak price within the last year.
Shareholding and Market Capitalisation
The majority shareholding in Shivam Autotech remains with the promoters, maintaining control over the company’s strategic direction. The company’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the Auto Components & Equipments sector.
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Mojo Score and Rating Update
Shivam Autotech currently holds a Mojo Score of 17.0, categorised under a Strong Sell rating. This represents a downgrade from the previous Sell rating, which was revised on 17 Feb 2025. The downgrade reflects deteriorating fundamentals and valuation concerns, signalling caution within the analytical framework.
Summary of Key Metrics
To summarise, Shivam Autotech Ltd’s key financial and market metrics as of 29 Dec 2025 include:
- New 52-week low price: Rs.21.36
- One-year stock return: -52.57%
- Sensex one-year return: +7.91%
- Debt-to-equity ratio (latest half-year): 190.74 times
- ROCE (half-year): 1.15%
- Operating profit annual decline (5 years): -7.92%
- Net sales annual decline (5 years): -0.18%
- Enterprise value to capital employed: 1.9
- Mojo Grade: Strong Sell (downgraded from Sell)
These figures collectively illustrate the challenges faced by Shivam Autotech in maintaining growth, profitability, and market valuation amidst a highly leveraged balance sheet and subdued sector performance.
Sector and Market Comparison
While Shivam Autotech has struggled, the broader Auto Components & Equipments sector has shown mixed performance, with some peers maintaining more stable financial profiles and valuations. The Sensex’s proximity to its 52-week high and its bullish technical indicators contrast with the stock’s persistent weakness, highlighting the divergence between the company’s individual performance and the overall market trend.
Conclusion
Shivam Autotech Ltd’s fall to a 52-week low of Rs.21.36 marks a continuation of a challenging period for the company, characterised by high leverage, declining profitability, and sustained underperformance relative to the market and sector benchmarks. The stock’s technical and fundamental indicators remain subdued, reflecting the ongoing pressures within the company’s financial and operational landscape.
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