AI-generated · cited to primary sources · not investment advice
Shivalik Bimetal (513097) Jun 2025 Filing Analysis
Does management do what it says?
Management has increased its focus on automation due to rising manpower costs, leading to higher than originally planned capex. Current CWIP stands at ₹32 crore. (1 exceeded across 1 tracked commitment)
“regarding the continuous maintenance capex and the automation capex, which is in the range of 10 to 15 crore year on year.”
Management expects both thermostatic bimetals and shunts to come under mandatory BIS certification within the current year. — target: BIS Implementation
“And so we are expecting that within this year, we should be seeing both of these categories also come under BIS”
The company is establishing a new dedicated R&D 'Center of Excellence' in the NCR region to accelerate new product development. — target: Establishment of R&D Center (+1 more commitment)
“So these usually can take anything between 12 to 18 months, if you're being optimistic, and that's when it then gets released for commercial production.”
Management expects the Smart Meter segment to grow by approximately 50% in the current year. — target: 50%
“we are expecting to grow almost by 50% specifically in that segment this year as well.”
See the full cited Management analysis of Shivalik Bimetal
How durable is the business?
The shunt segment is expanding, led by 30% growth in the Indian market driven by smart metering and e-mobility. Management expects 15-18% growth for FY26. (2 expanding)
“shunt resistor segment saw good traction India as the Indian market. It led with over 30% growth. This was supported by demand from mainly smart metering, e mobility”
Domestic revenue share is expected to stabilize or grow slightly to 44-47%, supported by the upcoming mandatory BIS standards which favor local quality players. (1 stable)
“domestic market would be in the range of 44 to 47 okay... we are expecting that within this year, we should be seeing both of these categories also come under BIS”
See the full cited Business Model analysis of Shivalik Bimetal
Where does growth come from?
Traction in the automotive/EV segment is accelerating with 37% of total revenue now coming from this sector. Management reports a higher number of inquiries and positive sentiment from North American and Indian EV customers. (2 accelerating across 2 signals)
“currently, we are doing almost 37% automotive business out of total revenue... we are seeing higher, higher number of inquiries and opportunities for the automotive EV opportunities”
Margins are showing strong acceleration in the most recent quarter (Q4 FY25) reaching 23.17%, up over 400 basis points. Management maintains a steady full-year outlook of 22-23% but sees potential for further improvement as product mix shifts toward assemblies. (5 accelerating across 5 signals)
“During the fourth quarter, we delivered a 25% year on year growth in EBITDA, with margins expanding by over 400 basis point to 23.17%... closing with an EBITDA margin of 22.28%”
Management has formalized growth targets for FY26, projecting shunt growth at 15-18%. This is supported by a 30% growth in the Indian market specifically driven by smart metering and e-mobility. (3 steady across 3 signals)
“So shunt will always be in the range of 15 to 18% and bimetal would be in the range of 12 to 16%.”
See the full cited Future Growth analysis of Shivalik Bimetal
What could break the thesis?
Management clarifies that only 3-4% of total revenue is currently impacted by tariffs and they do not foresee a major long-term hit due to the lengthy customer validation process which creates stickiness. (1 easing)
“In our business line , you see, there's no impact on that. If even you can go through the investor deck, you can see only three to 4% of the total revenue somewhere is having an impact... tariff does not have a major or significant impact on our product lines.”
See the full cited Risk analysis of Shivalik Bimetal
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