Shivam Autotech Limited has informed the Exchange about Credit Rating
SHIVAMAUTO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings has reaffirmed Shivam Autotech's credit ratings — CARE BB- for Long Term Bank Facilities of ₹181.82 crore and CARE A4 for Short Term Facilities of ₹4.80 crore. However, the outlook on the long-term rating has been revised from 'Stable' to 'Negative', signaling concern about the company's financial health. The company continues to post net losses of ₹48.04 crore in FY25, its overall gearing has worsened to 10.94x (from 7.29x), and liquidity remains stretched with negative cash generation. Additionally, the company faces a GST show cause notice for around ₹50.10 crore in potential tax liability. The reaffirmation is supported by experienced promoters (part of the Munjal group) and a strong operational link with Hero MotoCorp, which accounts for about 40% of revenue.
Negative for shareholders — the outlook downgrade to Negative suggests increased credit risk, potential difficulty in raising fresh funds on favourable terms, and continued financial stress. The junk-grade BB- rating and stretched liquidity could weigh on the stock and increase borrowing costs going forward.