Shivalic Power Control: Microcap Electric Stock Shines After Securing Major Order

Shivalic Power Control Ltd: A Rising Contender in the Electrical Manufacturing Sector

Shivalic Power Control Ltd, an ISO-certified manufacturer of electric panels, has drawn attention in the market following its latest order win from Technovative Engineers. While the stock showed slight fluctuation in the day’s trade, this new development signals the company’s growing prominence in the industrial electrical equipment market.

Stock Performance: Market Sentiments and Trends

The shares of Shivalic Power Control Ltd, with a market capitalization of ₹602.17 crore, experienced a minor dip of 0.36% during the day’s trade. The stock reached an intraday high of ₹254.90, a 1.7% rise from its previous close, before settling at ₹249.70. Despite the slight decline, this microcap stock continues to garner interest, especially after the recent order announcement.

However, it’s worth noting that the stock has underperformed on a year-to-date (YTD) basis, delivering a negative return of 19.6%, compared to the broader Nifty Index.

Order Announcement: A Boost to Business Prospects

Shivalic Power Control Ltd recently secured an order worth approximately ₹0.51 crore from Technovative Engineers. The order involves the supply of Low Tension (LT) panels, with completion targeted by mid-March 2025.

Although relatively modest in size, this commercial order underscores Shivalic’s ability to cater to diverse industrial requirements while maintaining quality standards.

About Shivalic Power Control Ltd: A Legacy of Excellence

Established in 2004, Shivalic Power Control Ltd has over two decades of experience in manufacturing high-quality Low Tension (LT) and High Tension (HT) electric panels. The company’s commitment to innovation and quality has made it a trusted name in the industry, catering to over 500 clients across India and international markets, including Nepal and several African nations.

Product Portfolio

Shivalic’s diverse range of products includes:

• Electric Panels: MCC Panels, PCC Panels, Smart Panels, IMCC Panels, DG Synchronization Panels, Outdoor Panels, and HT Panels (up to 33KV).

• Power Distribution Systems: Power Distribution Boards, Bus Ducts, and Automatic Power Factor Correction Panels.

• Customized Solutions: Tailored electrical control systems to meet industry-specific needs.

By sourcing components from industry leaders like Siemens and L&T, Shivalic ensures high standards in product reliability and performance.

Financial Growth: Strong Fundamentals Driving Success

Shivalic Power Control has reported impressive financial growth, reflecting its operational efficiency and expanding market presence.

Revenue and Profit Growth

• Revenue from operations grew by 72% YoY, increasing from ₹31.01 crore in H1FY24 to ₹53.51 crore in H1FY25.

• Net profits rose significantly, from ₹3.37 crore to ₹6.46 crore during the same period.

Key Financial Ratios

• Return on Equity (ROE): 35.50%, indicating strong shareholder value creation.

• Return on Capital Employed (ROCE): 30.53%, showcasing efficient utilization of capital.

• Debt-to-Equity Ratio: 0.88, reflecting manageable leverage levels.

These metrics highlight Shivalic’s robust financial health and its potential for sustained growth.

Shareholding Pattern: Promoter Confidence and Institutional Support

As of September 2024, the shareholding structure reflects a strong promoter commitment, with a holding of 70.86%. Other key stakeholders include:

• Foreign Institutional Investors (FII): 2.14%

• Domestic Institutional Investors (DII): 3.10%

• Public Shareholders: 23.90%

This balanced shareholding pattern underscores a mix of promoter confidence and institutional backing, contributing to the company’s credibility and stability.

Market Position and Strategic Outlook

Shivalic Power Control’s focus on innovation, quality, and strategic sourcing has positioned it as a reliable player in the electric panel manufacturing sector. The company’s emphasis on expanding into emerging markets, such as data centers, and its ability to provide customized solutions give it a competitive edge.

Additionally, Shivalic’s growing footprint in international markets and its diversified product portfolio make it well-equipped to capture new opportunities in the industrial electrical sector.

Challenges and Risks

Despite its strengths, Shivalic faces certain challenges, including:

• Volatility in raw material prices affecting margins.

• Intense competition in the microcap and broader industrial manufacturing space.

• Stock underperformance on a YTD basis, which may deter certain investors.

Addressing these challenges through strategic cost management and market diversification will be key to sustaining growth.

A Promising Future Ahead

Shivalic Power Control Ltd’s recent order win from Technovative Engineers adds to its growing portfolio of achievements, reflecting its commitment to quality and customer satisfaction. With a strong financial foundation, diversified product offerings, and an expanding market reach, the company is well-positioned for long-term growth.

While short-term market fluctuations may impact its stock performance, Shivalic’s robust business model and strategic initiatives make it a promising contender in the microcap electric manufacturing space. Investors seeking growth opportunities in this sector may find Shivalic a stock worth monitoring closely.

Disclaimer: The content in this article is for informational purposes only and should not be considered as investment advice. Investors are encouraged to consult their financial advisors before making any investment decisions.