Check Before You Invest : Zenith Fibres Ltd

Snapshot

Q.1 Which industry/sub-sector does Zenith Fibres Ltd belong to?

Zenith Fibres Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Manmade Fibres segment.

Q.2 Is Zenith Fibres Ltd a good quality company?

Zenith Fibres Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Zenith Fibres Ltd undervalued or overvalued?

Zenith Fibres Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Zenith Fibres Ltd a good buy now?

Zenith Fibres 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

Q.1 Revenue growth of Zenith Fibres Ltd?

Zenith Fibres Ltd revenue growth is 52.3% for FY-2025, which is above its 5-year CAGR of 12.97%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Zenith Fibres Ltd?

Zenith Fibres Ltd Return on capital employed is 4.41% for FY-2025, which is in line with its 5-year historical median of 4.41%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Zenith Fibres Ltd?

Zenith Fibres Ltd Return on Asset is 2.99%, which is in line with its 5-year historical median of 2.99%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Zenith Fibres Ltd?

Zenith Fibres Ltd Return on equity is 3.23% for FY-2025, which is in line with its 5-year historical median of 3.23%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Zenith Fibres Ltd?

Zenith Fibres Ltd Cash conversion cycle is 51 days, in line with its 5-year historical median of 51 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.87	0.87
ROE	3.23	3.23
ROCE	4.41	4.41
Cash Conversion Cycle	51 days	51 days

Q.6 Gross Profit margin of Zenith Fibres Ltd?

Zenith Fibres Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.1% for FY-2025, which is below its 5-year median of 7.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Zenith Fibres Ltd?

Zenith Fibres Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -0.08% for FY-2025, which is in line with its 5-year median of -0.08% indicating stable margins.

Q.8 Net Profit Margin of Zenith Fibres Ltd?

Zenith Fibres Ltd Net Profit Margin is 3.45% for FY-2025, is below with its 5-year median of 3.84%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.1	7.9
Operating Profit Margin	-0.08	-0.08
Net Profit Margin	3.45	3.84

Q.9 Debt to Equity ratio of Zenith Fibres Ltd?

Zenith Fibres Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.56, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Zenith Fibres Ltd?

Zenith Fibres Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zenith Fibres Ltd?

Promoters hold 46.86% of the Zenith Fibres Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zenith Fibres Ltd vs industry peers?

Zenith Fibres Ltd revenue CAGR is 12.97%, compared to the industry median CAGR of 0.03%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	52.3	0
Gross Profit Growth	25.5	6.8
Operating Profit Growth	0	-4.4
Net Profit Growth	36.4	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.87	1.18
ROE	3.23	4.17
ROCE	4.41	6.78
Cash Conversion Cycle (days)	51.18	67

Valuation & price assessment

Q.1 Stock return of Zenith Fibres Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -8.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-8.5%	7.2%	-7.5%	-26.1%

Q.3 Valuation ratios of Zenith Fibres Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	8.8	11.77	17.54
Price to Book	0.36	0.49	1.12
Price to Sales	0.49	0.55	0.55
EV to EBITDA	1.52	2.45	7.32

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