Stock Price Movement and Market Context
On 27 Jan 2026, Shivam Autotech Ltd’s share price fell to Rs.19, its lowest level in the past year. This decline comes after two consecutive days of losses, during which the stock has dropped by 6.63%. The day’s performance saw the stock underperform its sector by 1.21%, reflecting broader weakness in the Auto Components & Equipments industry. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
The broader market environment has also been subdued. The Sensex opened lower at 81,436.79, down 100.91 points (-0.12%), and was trading at 81,478.11 (-0.07%) during the day. Notably, the Sensex has been on a three-week losing streak, shedding 2.51% over this period. Other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows today, indicating sectoral pressures across the market.
Long-Term Performance and Valuation Metrics
Over the past year, Shivam Autotech Ltd has delivered a negative return of 50.00%, a stark contrast to the Sensex’s positive 8.20% gain over the same period. The stock’s 52-week high was Rs.41.36, highlighting the extent of the decline. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the last three years, one year, and three months.
From a valuation perspective, the company’s enterprise value to capital employed ratio stands at 1.8, which is considered expensive relative to its returns. The return on capital employed (ROCE) is notably low at 0.6%, while the half-year ROCE was recorded at 1.15%, the lowest in recent periods. These figures point to subdued profitability and capital efficiency.
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Financial Health and Debt Burden
One of the critical factors weighing on Shivam Autotech Ltd’s stock performance is its high debt level. The company’s debt-to-equity ratio is alarmingly high at 190.74 times, with the half-year figure even higher at 192.05 times. This indicates a significant reliance on borrowed funds relative to shareholder equity, which raises concerns about financial stability and long-term sustainability.
Despite this heavy debt load, the company’s net sales have shown a marginal decline, with an annual growth rate of -0.18% over the last five years. Operating profit has remained flat at 0% growth during the same period, reflecting limited expansion in core business profitability. The company has also reported losses, resulting in a negative return on equity (ROE), further underscoring the challenges in generating shareholder value.
Recent Quarterly Results
The company’s recent financial results for the quarter ended September 2025 were largely flat, with no significant improvement in key metrics. The subdued performance has contributed to the ongoing negative sentiment surrounding the stock.
Shareholding Pattern
Promoters remain the majority shareholders of Shivam Autotech Ltd, maintaining control over the company’s strategic direction. However, the stock’s performance and financial metrics have not reflected favourably on shareholder returns in recent times.
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Mojo Score and Analyst Ratings
Shivam Autotech Ltd currently holds a Mojo Score of 17.0, categorised as a Strong Sell. This rating was upgraded from a Sell to Strong Sell on 17 Feb 2025, reflecting deteriorating fundamentals and market sentiment. The company’s market cap grade is 4, indicating a relatively small market capitalisation within its sector.
The downgrade in rating aligns with the company’s financial metrics, including its high debt levels, flat sales growth, negative profitability indicators, and poor returns on capital. These factors collectively contribute to the cautious stance reflected in the Mojo Grade.
Comparative Sector and Market Performance
Within the Auto Components & Equipments sector, Shivam Autotech Ltd’s performance has lagged behind peers, both in terms of stock returns and fundamental growth. The sector itself has faced headwinds, but the company’s specific financial challenges have exacerbated its relative underperformance.
While the Sensex and other indices have experienced some volatility, Shivam Autotech’s 50.00% decline over the past year stands out as a significant deviation from broader market trends, which have been more resilient.
Summary of Key Metrics
To encapsulate, Shivam Autotech Ltd’s key financial and market indicators as of January 2026 are:
- New 52-week low price: Rs.19
- One-year stock return: -50.00%
- Debt-to-equity ratio: 190.74 times (half-year 192.05 times)
- Annual net sales growth (5 years): -0.18%
- Operating profit growth (5 years): 0%
- Return on capital employed (ROCE): 0.6%
- Enterprise value to capital employed: 1.8
- Mojo Score: 17.0 (Strong Sell)
- Market cap grade: 4
These figures illustrate the challenges faced by the company in maintaining growth and profitability, alongside a significant debt burden that impacts its financial flexibility.
Market Sentiment and Technical Indicators
Technically, the stock’s position below all major moving averages signals a bearish trend. The consecutive declines over the past two days and the underperformance relative to the sector suggest persistent selling pressure. The broader market’s modest weakness, with the Sensex trading below its 50-day moving average but above its 200-day moving average, indicates a cautious environment for equities in general.
Shivam Autotech Ltd’s current valuation discount relative to peers’ historical averages may reflect market concerns about its financial health and growth prospects. The company’s negative returns and flat recent results have contributed to subdued investor confidence.
Conclusion
Shivam Autotech Ltd’s fall to a 52-week low of Rs.19 marks a continuation of a challenging period for the company. The combination of high leverage, stagnant sales and profitability, and negative returns has weighed heavily on the stock. While the broader market and sector have also faced pressures, the company’s specific financial metrics and rating downgrade to Strong Sell underscore the difficulties it currently faces.
Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely as the stock remains under pressure in the near term.
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