Shivalik Bimetal: a shunt story at 75 times earnings

Shivalik Bimetal Controls Limited (NSE: SBCL) grew Q1 FY27 consolidated revenue 33.4% to ₹182.2 crore and profit 44.9% to ₹33 crore. The stock is near ₹1,146, up 107% in a year. What happened EBITDA rose 35.2% to ₹43.2 crore, a 23.7% margin. Standalone revenue grew far slower, at 12.95% to ₹131.8 crore. Shunt resistors, at 37% of revenue, grew 18.7% to ₹68.2 crore. Thermostatic bimetals, 35% of revenue, grew only 7.4%. Electrical contacts made up the rest. Exports were 54% of revenue, across 38 countries. The Pune plant reaches full capacity in October. Why it matters Shunts are small precision parts that measure the current in a circuit. Every battery pack, meter and power system needs them, including the gear feeding data centres. That is the link to the AI power story. My view Read one line in the deck carefully. Shunt volumes fell year on year, while shunt revenue rose 18.7%. The gain came from a richer mix and better pricing, not more pieces. Electrical contacts revenue moves with silver and copper prices, so part of the 33% is metal, not demand. Bimetals, still 35% of sales, grew 7.4%. So the fast growing part is barely a third of the business. Management guides 20% to 30% revenue growth for FY27, well below this quarter's 33%. Against that, the stock trades at about 75 times earnings and 14 times book, after gaining 189% in six months. Even on this quarter's run rate it is 50 times. What I am watching Q2 FY27 results in November, shunt volumes rather than shunt revenue, and the Pune ramp up. On the chart, ₹1,215 is the high and ₹900 is the first support. My stance: Do not chase. Fine business, extreme price. Revisit near ₹900. Disclosure: I do not hold a position in Shivalik Bimetal Controls Limited at the time of writing. This is not investment advice.