Shivam Auto

Shivam Autotech announced its Q4 and FY15 numbers, which were stable, not exactly trailblazing but the sweetener was a liberal 1:1 bonus. For Q4FY15, net profit came in 9% (YoY) higher at Rs.6 crore on a 11% rise in net sales at Rs.111 crore. It ended FY15 with a flat net profit of Rs.28 crore.

Post this bonus, the company’s equity will double up to Rs.20 crore from the current Rs.10 crore. This company, formerly Munjal Auto Components, is part of the Hero Group manufacturing near-net-shaped auto transmission components for original equipments manufacturers (OEMs). Its product portfolio comprises of transmission gears, transmission shafts, spline shafts, plunger, power train and engine transmission components employing cold/warm/hot forging techniques. Its debt (LT+ST borrowings) as at 31st March 2015 stood at Rs.170 crore.

A new plant is being established near Bangalore to cater to the growing needs of Bosch, land for which has been acquired. Another piece of land has been acquired at IMT Rohtak for a new plant to cater to both existing and new customers.

We had recommended this stock on 14th Nov’14 at Rs.67 in our Stock Recommendation section; clearly those who invested must be a happy and richer lot today!