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INVESTMENT INSIGHTS

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

BSE: 505163 NSE: ZFSTEERING ISIN: INE116C01012
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

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 10 year financial track record.
Q.3 Is ZF Steering Gear (India) Ltd undervalued or overvalued?
ZF Steering Gear (India) Ltd appears Fair, as its key valuation ratios are in line with their past averages.
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

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 11.5% , 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 with its 5 year median of 5.84%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 16.6 18.7
Operating Profit Margin 11.47 11.47
Net Profit Margin 6.88 5.84
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 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 historical median of 6.25%, indicating the business is making better use of its shareholders capital.
Q.7 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 below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of ZF Steering Gear (India) Ltd?
ZF Steering Gear (India) Ltd Cash conversion cycle is 95 days, below its historical median of 99 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.87 0.87
ROE 7.11 6.25
ROCE 10.45 8.63
Cash Conversion Cycle 95 days 99 days
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 with the industry average of 0.4 , 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

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)

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 11.82% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 492.9 492.3
Gross Profit 81.8 44.4
Operating Profit 57 47
Net Profit 34 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.87 1.23
ROE 7.11 11.57
ROCE 10.45 13.36
Cash Conversion Cycle (days) 95.19 47

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 -5.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -5.6% 18.1% 16.4% -25.1%
Q.3 Valuation ratios of ZF Steering Gear (India) 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 21.01 22.98 39.31
Price to Book 1.52 1.42 2.88
Price to Sales 1.5 1.57 1.29
EV to EBITDA 9.41 9.10 11.85

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