Recent Price Movement and Market Context
On 19 Jan 2026, Shivam Autotech Ltd’s share price closed at Rs.21.3, down 2.16% on the day. This decline extended a three-day losing streak during which the stock has fallen by 4.23%. The stock’s performance notably lagged the Auto Components & Equipments sector, underperforming by 1.04% today. Furthermore, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the Sensex opened flat but slipped into negative territory, trading at 83,302.42 points, down 0.32% or 75.86 points. Despite this, the Sensex remains within 3.43% of its 52-week high of 86,159.02. However, the benchmark index has also experienced a three-week consecutive decline, losing 2.87% over that period. This broader market weakness provides some context but does not fully account for Shivam Autotech’s sharper underperformance.
Long-Term Performance and Valuation Metrics
Over the past year, Shivam Autotech Ltd’s stock has depreciated by 47.74%, a stark contrast to the Sensex’s positive return of 8.73% during the same period. The stock’s 52-week high was Rs.44.35, indicating a near 52% drop from that peak. This prolonged decline reflects challenges in both the company’s financial health and market sentiment.
The company’s valuation metrics further highlight concerns. The Return on Capital Employed (ROCE) stands at a low 0.6%, while the Enterprise Value to Capital Employed ratio is 1.9, suggesting an expensive valuation relative to the returns generated. Despite this, the stock trades at a discount compared to its peers’ average historical valuations, indicating market caution.
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Financial Health and Debt Burden
One of the most significant factors weighing on Shivam Autotech Ltd is its elevated debt levels. The company’s debt-to-equity ratio is alarmingly high at 190.74 times, indicating a substantial reliance on borrowed funds relative to shareholder equity. This level of leverage is considered weak for long-term fundamental strength and raises concerns about financial stability and servicing costs.
Recent half-yearly results showed a debt-to-equity ratio peaking at 192.05 times, underscoring the persistence of this issue. The company’s Return on Capital Employed (ROCE) for the half-year was reported at a low 1.15%, further reflecting limited efficiency in generating returns from its capital base.
Growth and Profitability Trends
Shivam Autotech Ltd’s growth trajectory has been subdued over the last five years. Net sales have declined marginally at an annual rate of -0.18%, while operating profit has remained flat at 0%. This stagnation in core business performance has contributed to the company reporting losses, resulting in a negative Return on Equity (ROE).
Profitability has also deteriorated over the past year, with profits falling by 29.4%. This decline has compounded the stock’s negative returns and contributed to the downgrade in its Mojo Grade from Sell to Strong Sell on 17 Feb 2025. The company’s Mojo Score currently stands at 17.0, reflecting weak fundamentals and momentum.
Comparative Performance and Market Position
In addition to underperforming the Sensex, Shivam Autotech Ltd has lagged behind the BSE500 index over multiple time frames, including the last three years, one year, and three months. This below-par performance relative to broader market benchmarks highlights the challenges the company faces in regaining investor confidence and market share.
The stock’s market capitalisation grade is rated 4, indicating a micro-cap status with limited liquidity and market presence. Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.
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Summary of Key Metrics
To summarise, Shivam Autotech Ltd’s key financial and market metrics as of January 2026 are as follows:
- 52-week low price: Rs.21.3
- 52-week high price: Rs.44.35
- One-year stock return: -47.74%
- Sensex one-year return: +8.73%
- Debt-to-equity ratio: 190.74 times
- ROCE (half-year): 1.15%
- Operating profit growth (5 years): 0%
- Net sales growth (5 years): -0.18% annually
- Mojo Score: 17.0 (Strong Sell)
- Market capitalisation grade: 4 (micro-cap)
Market and Sector Context
The Auto Components & Equipments sector has experienced mixed performance recently, with some stocks showing resilience while others face headwinds. Shivam Autotech Ltd’s underperformance relative to its sector peers and the broader market indices highlights company-specific issues that have contributed to its decline.
Despite the Sensex’s proximity to its 52-week high and a generally positive market environment for select sectors, Shivam Autotech’s stock continues to trend lower, reflecting the challenges embedded in its financial structure and growth outlook.
Conclusion
Shivam Autotech Ltd’s fall to a 52-week low of Rs.21.3 underscores the cumulative impact of high leverage, subdued growth, and profitability pressures. The stock’s sustained underperformance relative to the Sensex and its sector peers, combined with weak fundamental indicators, has resulted in a Strong Sell rating and a low Mojo Score. While the broader market shows signs of resilience, Shivam Autotech’s valuation and financial metrics suggest continued caution in assessing its near-term prospects.
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