Shivam Autotech Ltd

Shivam Autotech operates with a highly leveraged capital structure, as evidenced by a debt-to-equity ratio of 7.01, significantly above the industry median. The company's liquidity position is constrained, with a current ratio of 0.56, indicating that current liabilities exceed current assets. This is further compounded by a negative net cash position after subtracting total debt, signaling potential short-term liquidity stress.

Profitability metrics are weak, with a return on equity (ROE) of -14.09% and a return on assets (ROA) of -1.39%. These figures are well below the industry benchmarks for ROE and ROA, which typically exceed 10% and 5%, respectively. The company reported a net loss of INR 78.34 million, despite generating INR 638.15 million in gross profit, suggesting high operating expenses or non-operating losses.

The company's revenue is concentrated in a single business segment, as disclosed in its financials, with no material geographic diversification beyond India. This concentration increases exposure to domestic economic cycles and regulatory shifts. No material revenue is attributed to international markets.

Growth prospects appear muted, with no disclosed revenue growth in the most recent fiscal year. The company's capital expenditure of INR 58.49 million is modest relative to its asset base, suggesting limited investment in capacity expansion or innovation. The outlook for the next fiscal year remains uncertain, with no clear direction provided in the available data.

The company faces moderate liquidity risk, as highlighted by the risk assessment, and a low dilution risk. However, the high debt-to-equity ratio and negative net cash position suggest potential refinancing challenges. No recent equity issuance or dilutive events have been reported, and the company's diluted shares outstanding are equal to its basic shares, indicating no material dilution pressure.

Recent filings and transcripts do not disclose any material events or strategic shifts. The company's 10-K filing notes ongoing challenges in managing operating costs and maintaining margins in a competitive domestic market. No significant new contracts, product launches, or regulatory changes have been reported in the latest disclosures.

Operating income surged 59.3% year-over-year to INR 119 million, signaling improved core operational efficiency despite revenue stagnation.

Operating margin of 4.9% exceeds the 4.4% cohort median, indicating superior cost management relative to auto parts peers.

Long-term debt decreased to INR 3.39 billion in the latest period, reflecting a continued deleveraging trend from previous highs.

Revenue decline moderated to -3.3% year-over-year, suggesting stabilization in top-line performance after years of contraction.

Dilution risk is assessed as low, providing some protection to existing shareholders against equity value erosion.

Debt-to-equity ratio stands at 7.01, drastically exceeding the 0.41 cohort median and indicating severe financial leverage risk.

Free cash flow deteriorated to negative INR 221 million, highlighting significant liquidity pressures and poor cash generation capabilities.

High credit risk flags combined with medium liquidity risk suggest potential difficulties in meeting financial obligations.

Revenue INR 4.70B, −0,1% YoY; Operating income −47,5% YoY.

• ▍Revenue INR 4.70B, −0,1% YoY
• ▍Operating income −47,5% YoY
• ▍Net income −44,6% YoY
• ▍Free cash flow −2 131,6% YoY
• ▍Net margin -10.7%

Revenue INR 4.70B, +0,2% YoY; Operating income −53,5% YoY.

• ▍Revenue INR 4.70B, +0,2% YoY
• ▍Operating income −53,5% YoY
• ▍Net income −116,2% YoY
• ▍Free cash flow −104,5% YoY
• ▍Net margin -7.4%

Revenue INR 4.69B, −3,7% YoY; Operating income +5,3% YoY.

• ▍Revenue INR 4.69B, −3,7% YoY
• ▍Operating income +5,3% YoY
• ▍Net income +28,7% YoY
• ▍Free cash flow +274,8% YoY
• ▍Net margin -3.4%

Revenue INR 4.87B; Operating income INR 291.2M.

• ▍Revenue INR 4.87B
• ▍Operating income INR 291.2M
• ▍Net margin -4.6%