Shivalik Bimetal Story: From Tiny Bet to Multi-Bagger
End of multibagger story or is it just a start!
Back in 2017, I was still exploring the lesser-known corners of the stock market, trying to spot hidden gems. Among the clutter of large caps and household names, Shivalik Bimetal Controls caught my attention — not because it was flashy, but because it had something very few companies offered: a specialized niche with global relevance.
They made thermostatic bimetal strips and shunt resistors — not exactly headline-making products, but essential components in industries like automotive, switchgears, electricals, and increasingly, electric vehicles (EVs).
Were you expecting a story like this? Sorry to disappoint you - I started investing in 2017, and back then, stocks were picked based on tips.
And I knew nothing I said above about the company :D
But I took a position. Not a massive one, but meaningful enough that if it played out, it would matter.
The only thing I knew was - Shivalik is a small-cap company. What I did not know was - modest in size but with solid fundamentals and a sense of purpose in its growth.
The Holding Phase – Staying the Course
As years passed, Shivalik didn’t shoot up overnight. Infact, during the COVID-19 crash, my holding in the company was reduced to half.
After that, it grew steadily, year after year — strengthening its product base, expanding capacity, and increasing exports. I stayed invested, even when the broader market chased momentum stocks.
The financials kept getting better. Between FY2020 and FY2024, revenue grew from Rs 187 crore to Rs 449 crore, clocking a 24.5% CAGR. Even more impressive was the bottom line — Profit Before Tax rose from Rs 16 crore to Rs 108 crore, a 61% CAGR, and PAT climbed from Rs 13 crore to Rs 81 crore, a 58% CAGR.
This wasn’t just growth. This was compounding at its best.
2024: A Moment of Reflection
Even after the recent correction in the share price, my investment in Shivalik remains one of the best decisions I’ve made. From the small bet in 2017 to today’s multi-bagger returns, it’s been a classic case of "buy right, sit tight."
In FY24, the company posted a 6.9% rise in total income (Rs 449 crore), and in Q4 FY24, PAT jumped 34% YoY. What stood out to me was the sharp rise in bimetal sales in India (31.7%) and shunt resistor sales in Asia (ex-India) by 32.8% — clear signs that they’re gaining traction across markets.
What Excites Me About the Future
Shivalik isn’t resting. It’s doubling down on growth — targeting the booming smart metering segment, riding the EV wave, and pushing further into the switchgear and electrical contact domains. The management has also hinted at inorganic growth, which could be a game-changer in capturing global opportunities.
Analysts are bullish: revenue CAGR of 25%, PAT CAGR of 29%, and a projected RoCE of 30.4% by FY26. Even with temporary softness in demand, the long-term thesis remains intact.
FII and DIIs hold a good 25% in the company, but that has mainly come from the stake sale by promoters.
Final Thoughts
Sometimes, not knowing too much and holding a company can give you returns
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Tell me in the comments - Has the story just started, or is it over?
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Hold tight sit tight 😄