Credit Analysis & Research Limited (CARE) has revised the credit ratings to the Bank facilities of Shivam Autotech Ltd.
The rating of Long term Bank facilities has been revised to CARE BBB; Negative (Triple B; Outlook Negative) from CARE BBB+; Stable (Triple B+; Outlook Stable)
The rating of Short term Bank facilites has been revised to CARE A2 (A Two) from CARE A2+ (A Two Plus).
CARE has downgraded the ratings based on the following reasons:
1. Financial risk profile of the Company during FY 2019 and Ql FY 2020 marked by loss at net level.
2. Delicately poised liquidity position With high working capital utilization.
3. Ratings remained constrained by moderated solvency and debt coverage indicators.
4. Cyclical nature of auto sector
However, ratings continue to derive strength from the experienced and resourceful promoters, favorable plant locations and strong operational linkages and long standing relationship with its major customer, The Company's ability to improve its profitability margins while ramping up its production in the new Greenfield plants as well as continued support and linkages with Hero MotoCorp would remain the key rating sensitivities.
Shares of SHIVAM AUTOTECH LTD. was last trading in BSE at Rs.17.95 as compared to the previous close of Rs. 19.25. The total number of shares traded during the day was 3921 in over 72 trades.
The stock hit an intraday high of Rs. 19.75 and intraday low of 17.7. The net turnover during the day was Rs. 71858.