Intraday Performance and Market Context
On 26 Dec 2025, Shivam Autotech’s stock touched an intraday low of Rs.23.04, representing a decline of 7.91% for the day. This movement underperformed the Auto Components & Equipments sector by 4.83%, signalling relative weakness within its industry peers. The stock’s current price is substantially below its 52-week high of Rs.50, indicating a near 54% reduction over the past year.
The broader market, represented by the Sensex, opened lower by 183.42 points and was trading at 85,039.69, down 0.43%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 1.32% away, and is supported by bullish moving averages with the 50-day DMA above the 200-day DMA. This contrast highlights Shivam Autotech’s divergence from the general market trend.
Technical Indicators and Moving Averages
Shivam Autotech is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained downward momentum and a lack of short-term recovery signals. The stock’s failure to hold above these averages reflects persistent selling pressure and subdued investor sentiment.
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Long-Term Performance and Financial Health
Over the last year, Shivam Autotech’s stock has recorded a return of -46.22%, contrasting sharply with the Sensex’s 8.39% gain during the same period. This underperformance extends beyond the recent year, with the stock lagging behind the BSE500 index over one year, three years, and the past three months.
The company’s financial indicators reveal several areas of concern. The debt-equity ratio stands at an elevated 190.74 times, indicating a high level of leverage relative to equity. This figure is significantly above typical industry standards and points to a weak long-term fundamental strength. Additionally, the average debt-to-equity ratio over recent periods is 2.68 times, reinforcing the company’s reliance on debt financing.
Net sales have shown a slight negative trend, with an annualised growth rate of -0.18% over the past five years. Operating profit has also reflected a downward trend at an annual rate of -7.92% during the same timeframe. These figures suggest subdued growth and pressure on profitability.
Profitability and Valuation Metrics
Shivam Autotech has reported losses in recent periods, resulting in a negative return on equity (ROE). The return on capital employed (ROCE) for the half-year ended September 2025 was recorded at 1.15%, one of the lowest levels observed. The company’s valuation metrics indicate an enterprise value to capital employed ratio of 2, which is considered expensive relative to its returns.
Profit figures have declined by 29.4% over the past year, further reflecting the challenges faced by the company in maintaining earnings. Despite this, the stock is trading at a discount compared to the average historical valuations of its peers within the Auto Components & Equipments sector.
Shareholding and Sectoral Position
The majority shareholding in Shivam Autotech remains with the promoters, maintaining control over the company’s strategic direction. The stock operates within the Auto Components & Equipments sector, which has seen mixed performance amid broader economic conditions and supply chain considerations.
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Summary of Current Challenges
Shivam Autotech’s recent decline to Rs.23.04 highlights a period of sustained pressure on the stock, driven by its financial structure and performance metrics. The high leverage, subdued sales growth, and negative profitability indicators have contributed to the stock’s underperformance relative to the broader market and sector peers.
Trading below all major moving averages and at a significant discount to its 52-week high, the stock reflects the market’s cautious stance. While the broader Sensex maintains a position near its yearly peak, Shivam Autotech’s trajectory remains distinctively subdued.
Outlook Considerations
Investors analysing Shivam Autotech will note the company’s current valuation relative to its capital employed and the challenges posed by its debt levels. The stock’s performance over the past year and longer-term trends indicate a need for careful evaluation within the context of the Auto Components & Equipments sector’s dynamics.
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