1. At a Glance – Blink and You’ll Miss the Equity
Shivam Autotech is currently a ₹293 crore market-cap auto component company selling near-net-shaped dreams to OEMs… and losses to shareholders. The stock trades at around ₹22, down ~24% in three months and ~45% over one year. Revenue for the latest quarter clocked in at ₹96.2 crore (down ~15% YoY), while PAT politely collapsed to -₹23.5 crore, reminding everyone that metal forging doesn’t automatically forge profits. ROCE is a sleepy 3.35%, ROE is a dramatic -111%, and debt sits at ₹338 crore, which is almost poetic given the company’s negative net worth as of Dec 2025.
OPM has slid to 5% in Q3 FY26, interest coverage is -0.05, and price-to-book is a galaxy-brain 166x—because when book value is nearly gone, math starts doing stand-up comedy. If you like balance sheets with tension, suspense, and mild horror, keep reading.
2. Introduction – A Forging Story With Too Much Heat, Not Enough Steel
Shivam Autotech was incorporated in 1999, back when two-wheelers were simple, debt was manageable, and near-net-shape technology sounded like a competitive edge rather than a trivia answer. The company carved out a niche supplying forged transmission gears, shafts, starter motor parts, and EPS components to OEMs—most notably Hero MotoCorp, which alone contributes ~40% of revenue.
And here lies the first plot twist.
Hero depends on Shivam for 65–70% of its gear and shaft requirements, while Shivam depends on Hero for survival. This is not diversification; this is a long-term relationship with no exit clause.
Over the years, revenues have stagnated (5-year CAGR: -5%), margins have compressed, interest costs have ballooned, and equity has been slowly but surely eroded. The company now finds itself in a classic auto-ancillary trap: high fixed costs, OEM pricing pressure, leverage-heavy balance sheet, and no pricing power.
So the real question isn’t what does Shivam make?
It’s how long can it keep making it without equity dilution becoming inevitable?
3. Business Model – WTF Do They Even Do? (And Why Is It So Hard?)
Shivam Autotech manufactures near-net-shaped forged components, which basically means:
“We forge metal so precisely
that OEMs don’t need to machine it much later.”
Sounds fancy. It is fancy. It’s also capital-intensive, margin-sensitive, and brutally dependent on volumes.
Product mix includes:
- Transmission gears & shafts (core breadwinner)
- Starter motor & alternator components
- EPS and precision-engineered parts
- Aluminium forgings (because steel alone wasn’t stressful enough)
Manufacturing footprint: Gurgaon, Haridwar, Bengaluru, Rohtak — all ATF 16949 certified, which is great for audits and terrible for excuses.
End-market reality:
Most products go into 2-wheelers, a segment where:
- OEMs squeeze suppliers
- EV transition threatens ICE volumes
- Cost savings are celebrated more than innovation
Shivam is an OEM vendor, not an ODM. No brand. No pricing power. No mercy.
If Hero sneezes, Shivam catches pneumonia.
4. Financials Overview – Numbers That Need Therapy
Quarterly Comparison Table (₹ Crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 96 | 113 | 113 | -15.0% | -15.0% |
| EBITDA | 5 | 11 | 10 | -54.5% | -50.0% |
| PAT | -25 | -12 | -12 | -108% | -108% |
| EPS (₹) | -1.87 | -0.97 | -0.94 | -93% | -99% |
Annualised EPS (Q3 rule):
Average of Q1–Q3 FY26 EPS × 4
= (-0.85 + -0.91 + -1.87) / 3 × 4 ≈ -₹5.28
That’s not annualisation. That’s acceleration—in reverse.
Commentary:
Revenue fell, margins collapsed, interest rose, depreciation stayed put, and equity waved goodbye. This is not a cyclical dip; this is structural fatigue wearing a quarterly costume.
5. Valuation Discussion – A Range, Not a Rescue Plan
Disclaimer:
This fair value range is for educational purposes only and is not investment advice.
Method 1:
