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Check Before You Invest : Zenlabs Ethica Ltd

BSE: 530697 NSE: ISIN: INE546F01013
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Zenlabs Ethica Ltd belong to?
Zenlabs Ethica Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Zenlabs Ethica Ltd a good quality company?
Zenlabs Ethica Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Zenlabs Ethica Ltd undervalued or overvalued?
Zenlabs Ethica Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Zenlabs Ethica Ltd a good buy now?
Zenlabs Ethica 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 Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd revenue growth is -12.2% for FY-2025 , which is below its 5 year CAGR of -3% , indicating slower growth.
Q.2 Gross Profit margin of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025 , which is above its 5 year median of 3.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.01% for FY-2025 , which is above its 5 year median of 4.12% indicating increasing margins.
Q.4 Net Profit Margin of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Net Profit Margin is 0.52% for FY-2025 , is below with its 5 year median of 0.73%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 3.3 3.2
Operating Profit Margin 5.01 4.12
Net Profit Margin 0.52 0.73
Q.5 Return on Asset of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Return on Asset is 0.67(x), which is below its 5 year historical median of 1.21(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Return on equity is 2.62% for FY-2025 , which is below its historical median of 5.14%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Return on capital employed is 5.96% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Cash conversion cycle is 132 , above its historical median of 38 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.28 1.65
ROE 2.62 5.14
ROCE 5.96 10.34
Cash Conversion Cycle 132 38
Q.9 Debt to Equity ratio of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Debt-to-Equity ratio is 1.14 , which is above with the industry average of 0.03 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Zenlabs Ethica Ltd?
Zenlabs Ethica Ltd Debt to cash flow from operations is 3.1 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zenlabs Ethica Ltd?
Promoters hold 52.96% of the Zenlabs Ethica Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zenlabs Ethica Ltd vs industry peers?
Zenlabs Ethica Ltd revenue CAGR is -3.02% , compared to the industry median CAGR of 0% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 51.4 13.3
Gross Profit 1.7 0.4
Operating Profit 2.6 0
Net Profit 0.3 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.28 0.5
ROE 2.62 2.03
ROCE 5.96 3.6
Cash Conversion Cycle 132.27 41

Valuation & price assessment

Q.1 Stock return of Zenlabs Ethica Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 4.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 4.8% 2.4% -29.8% -28.6%
Q.3 Valuation ratios of Zenlabs Ethica Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 43.98 21.75
Price to Book 1.58 2.44 1.55
Price to Sales 0.27 0.34 1.87
EV to EBITDA 9.26 0.00 13.67

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