Shivam Autotech Shows Stable Cash Flow Amid Ongoing Financial Challenges

Shivam Autotech, a microcap player in the auto components and equipment sector, has recently undergone a financial trend adjustment reflecting a more stable performance in its latest quarter ending September 2025. The company's operating cash flow reached a notable Rs 77.39 crore, indicating strong liquidity management. Additionally, the debtors turnover ratio stood at an impressive 9.00 times, showcasing effective credit management and collection processes.
However, challenges persist for Shivam Autotech. The return on capital employed (ROCE) is currently at a low 1.15%, suggesting inefficiencies in generating returns from its capital investments. Furthermore, the debt-equity ratio is concerningly high at 192.05 times, indicating a heavy reliance on debt financing, which could pose risks in a fluctuating market environment.

In terms of stock performance, Shivam Autotech has faced significant challenges compared to the Sensex. Over the past year, the stock has declined by 20.70%, while the Sensex has gained 8.79%. This trend highlights the company's struggle to keep pace with broader market movements. Despite a recent evaluation revision, the underlying financial metrics suggest a need for strategic adjustments to enhance overall performance and market competitiveness.