Check Before You Invest : ZF Steering Gear (India) Ltd

Q: Which industry/sub-sector does ZF Steering Gear (India) Ltd belong to?

ZF Steering Gear (India) Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q: Is ZF Steering Gear (India) Ltd a good quality company?

ZF Steering Gear (India) Ltd is a average quality company, based on a somewhat consistent 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: Is ZF Steering Gear (India) Ltd undervalued or overvalued?

ZF Steering Gear (India) Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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. Price to Earnings, Current: 20.08, Historic Median: 22.82. Price to Book, Current: 1.22, Historic Median: 1.43. Price to Sales, Current: 1.15, Historic Median: 1.55. EV to EBITDA, Current: 7.88, Historic Median: 9.09

Q: Is ZF Steering Gear (India) Ltd a good buy now?

ZF Steering Gear (India) 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

Q: Revenue growth of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd revenue growth is 3.1% for FY-2025, which is below its 5-year CAGR of 11.45%, indicating slower growth.

Q: Gross Profit margin of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025, which is below its 5-year median of 18.7%, indicating decreasing margins.

Q: Operating Profit Margin of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.47% for FY-2025, which is in line with its 5-year median of 11.47% indicating stable margins.

Q: Net Profit Margin of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Net Profit Margin is 6.88% for FY-2025, is above its 5-year median of 5.84%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 16.6, Historic Median: 18.7. Operating Profit Margin (%), Current: 11.47, Historic Median: 11.47. Net Profit Margin (%), Current: 6.88, Historic Median: 5.84

Q: Return on Asset of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Return on Asset is 5.96%, which is above its 5-year historical median of 5.26%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Return on capital employed is 10.45% for FY-2025, which is above its 5-year historical median of 8.63%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : ZF Steering Gear (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does ZF Steering Gear (India) Ltd belong to?

ZF Steering Gear (India) Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is ZF Steering Gear (India) Ltd a good quality company?

ZF Steering Gear (India) Ltd is a average quality company, based on a somewhat consistent 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 ZF Steering Gear (India) Ltd undervalued or overvalued?

ZF Steering Gear (India) Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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	5-year Historic Median
Price to Earnings	20.08	22.82
Price to Book	1.22	1.43
Price to Sales	1.15	1.55
EV to EBITDA	7.88	9.09

Q.4 Is ZF Steering Gear (India) Ltd a good buy now?

ZF Steering Gear (India) 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 ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd revenue growth is 3.1% for FY-2025, which is below its 5-year CAGR of 11.45%, indicating slower growth.

Q.2 Gross Profit margin of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025, which is below its 5-year median of 18.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.47% for FY-2025, which is in line with its 5-year median of 11.47% indicating stable margins.

Q.4 Net Profit Margin of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Net Profit Margin is 6.88% for FY-2025, is above its 5-year median of 5.84%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	16.6	18.7
Operating Profit Margin (%)	11.47	11.47
Net Profit Margin (%)	6.88	5.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Return on Asset is 5.96%, which is above its 5-year historical median of 5.26%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Return on capital employed is 10.45% for FY-2025, which is above its 5-year historical median of 8.63%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Return on equity is 7.11% for FY-2025, which is above its 5-year historical median of 6.25%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Cash conversion cycle is 95 days, in line with its 5-year historical median of 99 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 (x)	0.87	0.87
ROE (%)	7.11	6.25
ROCE (%)	10.45	8.63
Cash Conversion Cycle	95 days	99 days

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

Q.9 Debt to Equity ratio of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Debt-to-Equity ratio is 0.08, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of ZF Steering Gear (India) Ltd?

ZF Steering Gear (India) Ltd Debt to cash flow from operations is 0.64, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ZF Steering Gear (India) Ltd?

Q.1 Promoter shareholding and pledge status of ZF Steering Gear (India) Ltd?

Promoters hold 62.75% of the ZF Steering Gear (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ZF Steering Gear (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ZF Steering Gear (India) Ltd vs industry peers?

ZF Steering Gear (India) Ltd revenue CAGR is 11.45%, compared to the industry median CAGR of 11.89%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	3.1	11.9
Gross Profit Growth (%)	-7.9	16.2
Operating Profit Growth (%)	7.6	14.7
Net Profit Growth (%)	-29.2	20.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.87	1.24
ROE (%)	7.11	11.65
ROCE (%)	10.45	13.5
Cash Conversion Cycle (days)	95.19	46

Valuation & price assessment

Q.1 Stock return of ZF Steering Gear (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -6.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-6.7%	9%	3.7%	-35.2%

Q.2 Valuation ratios of ZF Steering Gear (India) Ltd vs historical?

The current P/E ratio of 20.08 is lower than its historical median of 22.82, indicating that the stock is trading below its historical average valuation.

Q.3 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	20.08	22.82	28.71
Price to Book	1.22	1.43	2.99
Price to Sales	1.15	1.55	1.35
EV to EBITDA	7.88	9.09	11.85

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Check Before You Invest : ZF Steering Gear (India) Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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