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Check Before You Invest : Zelio E-Mobility Ltd

BSE: 544563 NSE: ISIN: INE1B3501014
  |   Sector:  Automobiles   |   Industry:  Automobile Two & Three Wheelers

Snapshot

Q.1 Which industry/sub-sector does Zelio E-Mobility Ltd belong to?
Zelio E-Mobility Ltd belongs to the Automobiles sector, operating specifically within the Automobile Two & Three Wheelers segment.
Q.2 Is Zelio E-Mobility Ltd a good quality company?
Zelio E-Mobility Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Zelio E-Mobility Ltd undervalued or overvalued?
Zelio E-Mobility Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 61.86 46.27
Price to Book 11.06 8.34
Price to Sales 5.75 4.30
EV to EBITDA 45.02 34.01
Q.4 Is Zelio E-Mobility Ltd a good buy now?
Zelio E-Mobility Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd revenue growth is 82.4% for FY-2025, which is below its 3-year CAGR of 137.27%, indicating slower growth.

Q.2 Gross Profit margin of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.1% for FY-2025, which is above its 3-year median of 8.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.23% for FY-2025, which is above its 3-year median of 9.29% indicating increasing margins.

Q.4 Net Profit Margin of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Net Profit Margin is 9.3% for FY-2025, is above its 3-year median of 6.68%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 12.1 8.7
Operating Profit Margin (%) 12.23 9.29
Net Profit Margin (%) 9.3 6.68

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Return on Asset is 33.8%, which is above its 3-year historical median of 28.33%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Return on capital employed is 51.79% for FY-2025, which is above its 3-year historical median of 44.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Return on equity is 85.75% for FY-2025, which is in line with its 3-year historical median of 85.75%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Cash conversion cycle is 47 days, above its 3-year historical median of 38 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 3.64 4.24
ROE (%) 85.75 85.75
ROCE (%) 51.79 44.79
Cash Conversion Cycle 47 days 38 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Debt-to-Equity ratio is 1.15, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Zelio E-Mobility Ltd?
Zelio E-Mobility Ltd Debt to cash flow from operations is -3.21, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Zelio E-Mobility Ltd?

Q.1 Promoter shareholding and pledge status of Zelio E-Mobility Ltd?
Promoters hold 72.77% of the Zelio E-Mobility Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Zelio E-Mobility Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Zelio E-Mobility Ltd vs industry peers?
Zelio E-Mobility Ltd revenue CAGR is 137.27%, compared to the industry median CAGR of 10.13%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 82.4 10.1
Gross Profit Growth (%) 162.5 58.7
Operating Profit Growth (%) 133.3 65.9
Net Profit Growth (%) 166.7 81.7
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 3.64 1.28
ROE (%) 85.75 12.5
ROCE (%) 51.79 17.98
Cash Conversion Cycle (days) 47.28 51

Valuation & price assessment

Q.1 Stock return of Zelio E-Mobility Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Zelio E-Mobility Ltd vs historical?
The current P/E ratio of 61.86 is higher than its historical median of 46.27, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 61.86 46.27 26.53
Price to Book 11.06 8.34 4.97
Price to Sales 5.75 4.30 3.64
EV to EBITDA 45.02 34.01 17.16

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