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INVESTMENT INSIGHTS

Check Before You Invest : Zim Laboratories Ltd

BSE: 541400 NSE: ZIMLAB ISIN: INE518E01015
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Zim Laboratories Ltd belong to?
Zim Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Zim Laboratories Ltd a good quality company?
Zim Laboratories Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Zim Laboratories Ltd undervalued or overvalued?
Zim Laboratories Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Zim Laboratories Ltd a good buy now?
Zim Laboratories Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Zim Laboratories Ltd?
Zim Laboratories Ltd revenue growth is 2.8% for FY-2025 , which is below its 5 year CAGR of 6.5% , indicating slower growth.
Q.2 Gross Profit margin of Zim Laboratories Ltd?
Zim Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 10% for FY-2025 , which is below its 5 year median of 10.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of Zim Laboratories Ltd?
Zim Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.52% for FY-2025 , which is in line with its 5 year median of 11.52% indicating stable margins.
Q.4 Net Profit Margin of Zim Laboratories Ltd?
Zim Laboratories Ltd Net Profit Margin is 3.13% for FY-2025 , is below with its 5 year median of 3.95%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 10 10.4
Operating Profit Margin 11.52 11.52
Net Profit Margin 3.13 3.95
Q.5 Return on Asset of Zim Laboratories Ltd?
Zim Laboratories Ltd Return on Asset is 2.59%, which is below its 5 year historical median of 3.98%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Zim Laboratories Ltd?
Zim Laboratories Ltd Return on equity is 4.94% for FY-2025 , which is below its historical median of 7.86%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Zim Laboratories Ltd?
Zim Laboratories Ltd Return on capital employed is 8.35% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Zim Laboratories Ltd?
Zim Laboratories Ltd Cash conversion cycle is 98 days, above its historical median of 60 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.83 0.96
ROE 4.94 7.86
ROCE 8.35 10.13
Cash Conversion Cycle 98 days 60 days
Q.9 Debt to Equity ratio of Zim Laboratories Ltd?
Zim Laboratories Ltd Debt-to-Equity ratio is 0.46 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Zim Laboratories Ltd?
Zim Laboratories Ltd Debt to cash flow from operations is 2.21 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zim Laboratories Ltd?
Promoters hold 33.26% of the Zim Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zim Laboratories Ltd vs industry peers?
Zim Laboratories Ltd revenue CAGR is 6.49% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 375.6 137.1
Gross Profit 37.6 15.1
Operating Profit 43 16
Net Profit 12 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.83 0.8
ROE 4.94 8.91
ROCE 8.35 11.59
Cash Conversion Cycle (days) 98.38 76

Valuation & price assessment

Q.1 Stock return of Zim Laboratories Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 25.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 25.9% -0.1% -10.8%
Q.3 Valuation ratios of Zim Laboratories Ltd vs historical?
The current P/E is higher 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 50.19 37.56 40.28
Price to Book 1.44 1.20 2.77
Price to Sales 1.08 0.67 2.65
EV to EBITDA 11.62 7.95 15.67

Check more companies

1. Ajanta Pharma
2. JB Chem & Pharma
3. Emcure Pharma
4. Gland Pharma
5. Wockhardt
6. Pfizer
7. Astrazeneca Pharma I
8. Sai Life Sciences
9. Natco Pharma
10. Eris Lifesciences
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