Shivalik Bimetal Simultaneous play in three opportunities from your electric switchgear to smart meters and even EV batteries.
Based in Himachal Pradesh, the company runs 3 manufacturing campuses and supplies 300+ OEMs across 38 countries. Their customers include global giants like Siemens, ABB, Schneider, Honeywell, Legrand, Havells, Eaton, L&T — and in autos, names like Tesla, BYD, Mercedes-Benz, Tata, Kia, Mahindra, Ola.
Why Shivalik Bimetal stands out:
- Gross margins at 46.5% vs global peers at 37% → shows pricing power.
- 75% of products are tailor-made for customers → OEMs literally invest in Shivalik’s production setups. This makes it nearly impossible to switch suppliers.
- Moat ~ Shivalik’s products are a small cost, there’s no real incentive to switch suppliers for OEMs.
- Market Leadership – Double‑digit global and domestic share in both product segments- shunt resistors & bimetals with Pricing power & sticky customer base with relationships lasting 20+ years.
- Customer loyalty is unmatched — no major customer has left them in the past 10 years.
Growth Drivers Ahead:
- EV boom: Shunt resistor demand triples per EV; global market growing from $3B to $4B by 2029.
- Smart Meter National Programme: 250 million meters by 2027; market CAGR ~15%.
- Grid Hardening & Renewables: $32B global investments in switchgear upgrades.
- China+1 shift: Western OEMs seeking alternative supply chains → SBCL is India’s only EBW shunt manufacturer.
- Long-term tailwinds from energy storage and data centers.
Financial Strength:
- Market Cap ₹3017cr
- High returns: ROCE ~25%, ROE ~20%.
- Clean balance sheet: Debt-to-equity just 0.10. and net debt positive debt 42cr cash79cr
- Operating margins ~20% FY25
- P/E ~37× — not cheap, but justified for a global niche leader with multi-decade visibility.
About the Business
Operates in three segments – Manufactures (1) Shunt resistors (2) Thermostatic bimetal, and (3) Electrical contacts.
Shunt resistors: Launched in 2015 & fastest‑growing business vertical
What They Do:
Work like electrical traffic cops — measure current flow accurately for control, safety, and efficiency.
Where They’re Used:
- EV Battery Management (BMS)
- Smart Meters
- Energy Storage Systems (ESS)
- Charging Infra & Power Modules
- Industrial Drives & Gas Meters
Used across EV, hybrid, ICE vehicles, electronics, and industrial power systems.
Why Shivalik Stands Out:
- One of the few global experts in Electron Beam Welded (EBW) shunt resistors
- High-precision sensors made in-house
- In-house EBW machine building keeps capex low and capability high
- Preferred by OEMs for accuracy and reliability
Key Customer – OEMs International 1. Mercedes Benz 2.BYD 3. Tesla Domestic 1. Tata 2.KIA 3.Mahindra 4.Ola
Thermostatic bimetal – Legacy Business
Bimetal strips made by joining two metals that bend when heated — like a temperature-sensitive switch.
They open or close circuits to prevent overheating or control temperature.
Where They’re Used:
- Switchgear
- Irons/geysers
- Auto thermostats
- Household appliances
Used across industrial, automotive, and electrical sectors.
Why Shivalik Stands Out:
- Works directly with OEMs (design-in advantage)
- Often the only supplier in its niche product lines
Electrical contacts ~(Forward Integration Higher Margin) a step closer to the final product, offering greater value addition by delivering sub-assembled parts, not just raw components.
What They Do:
Electrical contacts are the touchpoints inside switches that allow electricity to start or stop flowing — like the fingers that connect or disconnect power.
Where They’re Used:
- Circuit breakers
- Relays & contactors
- Smart meters
- Automotive electronics
- Electrical appliances
- Lighting and wiring devices
How They’re Made:
Using brazing, welding, or cladding to fuse metals together for durable, high-conductivity contacts.
Shivalik’s Edge:
- Supplies ready-to-use sub-assemblies, not just raw contacts
- Combines electrical contacts with complex metal stampings — offering a complete solution to OEMs
Financials Statement
|
Rs In Cr |
Mar-20 | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 | 5YR CAGR |
|
Sales |
187 | 204 | 324 | 470 | 509 | 508 |
22% |
|
Expenses |
166 | 168 | 251 | 361 | 403 | 405 |
|
| Operating Profit | 21 | 36 | 73 | 109 | 106 | 104 |
38% |
| OPM % | 11% | 18% | 23% | 23% | 21% |
20% |
|
| Other Income | 5 | 6 | 9 | 11 | 22 |
15 |
|
| Interest | 3 | 2 | 3 | 7 | 5 |
4 |
|
|
Depreciation |
6 | 6 | 6 | 11 | 12 |
12 |
|
|
Profit before tax |
17 | 34 | 73 | 102 | 112 |
103 |
|
| Tax % | 22% | 26% | 25% | 23% | 25% |
25% |
|
|
Net Profit + |
13 | 25 | 55 | 79 | 84 | 77 |
43% |
| EPS in Rs | 2.34 | 4.43 | 9.57 | 13.73 | 14.63 |
13.38 |
|
|
Dividend Payout % |
9% | 9% | 7% | 9% | 12% |
20% |
Key Growth Drivers
- EV Inflection: Each EV uses 3× more shunt resistor value than a regular petrol/diesel (ICE) vehicle.
- EV Shunt Market Size: $2.98B (2024) →$4.09B (2029) at 6.5–6.8% CAGR
- Smart Meter National Programme: 250Mn smart meters by 2025–2027
- Impact: Reduces technical losses from 22% → 12–15%
- Market: $250.7M (2023) → $763.2M (2031) at ~15% CAGR
- Grid‑Hardening: $32 billion investment globally by 2030 to upgrade and strengthen power grids, using GIS switchgear (Gas-Insulated Switchgear). These systems need bimetal components for thermal protection and safety.
- Electrification: Accelerated energy transition towards renewables is driving sustained demand for precision components in grid modernisation, EVs, and storage systems, strengthening medium-term visibility for Shunt Resistors and Bimetals.
- Cost‑China Shift: Western OEMs diversifying out of China seek dual‑source policy; SBCL gains share as India’s only EBW shunt house.
- Remaining – Energy Storage, Data Centres
