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Check Before You Invest : Zodiac Energy Ltd

BSE: 543416 NSE: ZODIAC ISIN: INE761Y01019
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Zodiac Energy Ltd belong to?
Zodiac Energy Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Zodiac Energy Ltd a good quality company?
Zodiac Energy Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Zodiac Energy Ltd undervalued or overvalued?
Zodiac Energy Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Zodiac Energy Ltd a good buy now?
Zodiac Energy 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 Zodiac Energy Ltd?
Zodiac Energy Ltd revenue growth is 85.3% for FY-2025 , which is above its 5 year CAGR of 43% , indicating faster growth.
Q.2 Gross Profit margin of Zodiac Energy Ltd?
Zodiac Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2025 , which is above its 5 year median of 6.4% , indicating increasing margins.
Q.3 Operating Profit Margin of Zodiac Energy Ltd?
Zodiac Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.1% for FY-2025 , which is above its 5 year median of 7.1% indicating increasing margins.
Q.4 Net Profit Margin of Zodiac Energy Ltd?
Zodiac Energy Ltd Net Profit Margin is 4.9% for FY-2025 , is above with its 5 year median of 4.4%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 7.4 6.4
Operating Profit Margin 9.1 7.1
Net Profit Margin 4.9 4.4
Q.5 Return on Asset of Zodiac Energy Ltd?
Zodiac Energy Ltd Return on Asset is 9.56%, which is above its 5 year historical median of 8.95%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Zodiac Energy Ltd?
Zodiac Energy Ltd Return on equity is 28.01% for FY-2025 , which is above its historical median of 18.1%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Zodiac Energy Ltd?
Zodiac Energy Ltd Return on capital employed is 21.33% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Zodiac Energy Ltd?
Zodiac Energy Ltd Cash conversion cycle is 78 days, below its historical median of 107 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.95 2.03
ROE 28.01 18.1
ROCE 21.33 20.55
Cash Conversion Cycle 78 days 107 days
Q.9 Debt to Equity ratio of Zodiac Energy Ltd?
Zodiac Energy Ltd Debt-to-Equity ratio is 1.65 , which is above with the industry average of 0.17 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Zodiac Energy Ltd?
Zodiac Energy Ltd Debt to cash flow from operations is -3.23 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zodiac Energy Ltd?
Promoters hold 69.91% of the Zodiac Energy Ltd, with 16.94% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zodiac Energy Ltd vs industry peers?
Zodiac Energy Ltd revenue CAGR is 43.01% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 407.8 101.1
Gross Profit 30.2 9.6
Operating Profit 37 9
Net Profit 20 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.95 0.89
ROE 28.01 11.68
ROCE 21.33 14.29
Cash Conversion Cycle (days) 77.64 101

Valuation & price assessment

Q.1 Stock return of Zodiac Energy Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 76.18% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 76.2% 36.3% -26.9%
Q.3 Valuation ratios of Zodiac Energy 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 22.01 36.53 46.24
Price to Book 4.12 5.17 2.79
Price to Sales 0.87 1.31 2.66
EV to EBITDA 10.82 20.24 15.72

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