Credit Suisse in its note says the company sees 100 basis points negative margin impact from Q4FY16 onwards due to phasing out of excise duty incentives at Haridwar plant.
Production at the plant was affected last week with workers going on a tool-down agitation against the suspension of two colleagues. While the workers claimed that production at the plant had came to a complete halt, the management had insisted the impact was very insignificant.
Shivam Autotech stock rallied as the company planned to expand capacity.