Shivam Autotech (SHIVAMAUTO)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• High promoter holding of 69.52% signals alignment with minority shareholders.
• Book value is still positive at ₹2.60 per share, offering a thin equity cushion.
• Quarterly sales of ₹96 Cr show the business still has meaningful revenue scale.
• Positive ROCE of 3.35% suggests some operating earnings before heavy financing costs.

Concerns

• Latest quarterly net loss of ₹25 Cr is roughly 26% of sales, eroding equity rapidly.
• P/B of 7.23 with ROE of -204.52% means paying a premium for shrinking book value.
• Debt/Equity of 191.98 and Piotroski F-Score of 3/9 point to severe financial stress.
• Sales growth of -14.69% and profit growth of -97.98% show no visible recovery trend.

AI Analysis

At ₹18.80, Shivam Autotech looks like the kind of stock that tempts a bargain hunter—but I am not a bargain hunter for stocks; I am a buyer of businesses. This business is losing money. The last quarter had sales of ₹96 Cr and a net loss of ₹25 Cr. That is a 26% loss margin. A P/E of 0.00 is not meaningfully cheap; it simply says earnings are absent. With a book value of ₹2.60 per share and price of ₹18.80, I am paying 7.23 times book for a company whose ROE is -204.52%. That is not value; it is value destruction. The balance sheet makes my stomach hurt. Debt/Equity of 191.98 means the equity cushion is almost nonexistent relative to borrowings. Piotroski F-Score of 3 out of 9 is a strong red flag on financial condition. Sales are declining 14.69% year on year and profit growth has collapsed by 97.98%. There is no dividend to compensate me while I wait. Promoter holding at 69.52% is good alignment, but even a supportive promoter cannot save a company if the debt and cost structure overwhelm operations. ROCE is only 3.35%, far below what I would need to take on this risk. I see no durable moat in auto components; this industry is competitive and cyclical, and this company has no pricing power. In Graham's language, this is a speculative situation, not an investment. I would not put new capital to work here until there is clear evidence of a turnaround: stable sales, positive operating profits, and a meaningfully lower debt load. Until then, the only 'value' is in the price chart, not in the business. A cigar butt with one puff left is fine if you can get it almost free; at ₹18.80, I am not willing to pay for someone else's soggy cigar.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer