Check Before You Invest : Zenotech Laboratories Ltd

Snapshot

Q.1 Which industry/sub-sector does Zenotech Laboratories Ltd belong to?

Zenotech Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Zenotech Laboratories Ltd a good quality company?

Zenotech Laboratories Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Zenotech Laboratories Ltd undervalued or overvalued?

Zenotech Laboratories Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Zenotech Laboratories Ltd a good buy now?

Zenotech Laboratories 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 Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd revenue growth is 5.4% for FY-2025, which is below its 5-year CAGR of 10.59%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd Return on capital employed is 11.46% for FY-2025, which is below its 5-year historical median of 12.89%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd Return on Asset is 5.43%, which is below its 5-year historical median of 8.68%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd Return on equity is 6.01% for FY-2025, which is below its 5-year historical median of 9.6%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd Cash conversion cycle is 17 days, above its 5-year historical median of -6 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.42	0.43
ROE	6.01	9.6
ROCE	11.46	12.89
Cash Conversion Cycle	17 days	-6 days

Q.6 Gross Profit margin of Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 36.5% for FY-2025, which is below its 5-year median of 44.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 32.98% for FY-2025, which is below its 5-year median of 42.27% indicating decreasing margins.

Q.8 Net Profit Margin of Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd Net Profit Margin is 13.04% for FY-2025, is below with its 5-year median of 20.32%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	36.5	44.6
Operating Profit Margin	32.98	42.27
Net Profit Margin	13.04	20.32

Q.9 Debt to Equity ratio of Zenotech Laboratories Ltd?

Zenotech Laboratories Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Zenotech Laboratories Ltd?

Zenotech Laboratories 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 Zenotech Laboratories Ltd?

Promoters hold 68.84% of the Zenotech Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zenotech Laboratories Ltd vs industry peers?

Zenotech Laboratories Ltd revenue CAGR is 10.59%, compared to the industry median CAGR of 8.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	5.4	8.3
Gross Profit Growth	-11.1	14.7
Operating Profit Growth	-17.7	11.4
Net Profit Growth	-25	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.42	0.81
ROE	6.01	9.49
ROCE	11.46	11.91
Cash Conversion Cycle (days)	16.95	85

Valuation & price assessment

Q.1 Stock return of Zenotech Laboratories Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 2.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	2.7%	0.1%	-7.5%	-23.4%

Q.3 Valuation ratios of Zenotech Laboratories 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	-	45.82	31.09
Price to Book	2.8	4.56	2.85
Price to Sales	6.73	10.19	2.79
EV to EBITDA	20.5	19.99	15.87

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