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Check Before You Invest : Zuari Industries Ltd

BSE: 500780 NSE: ZUARIIND ISIN: INE217A01012
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

Snapshot

Q.1 Which industry/sub-sector does Zuari Industries Ltd belong to?
Zuari Industries Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.
Q.2 Is Zuari Industries Ltd a good quality company?
Zuari Industries Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Zuari Industries Ltd undervalued or overvalued?
Zuari Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Zuari Industries Ltd a good buy now?
Zuari Industries 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 Zuari Industries Ltd?
Zuari Industries Ltd revenue growth is 21.8% for FY-2025 , which is below its 5 year CAGR of 72.4% , indicating slower growth.
Q.2 Gross Profit margin of Zuari Industries Ltd?
Zuari Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.4% for FY-2025 , which is in line with its 5 year median of 6.4% , indicating stable margins.
Q.3 Operating Profit Margin of Zuari Industries Ltd?
Zuari Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.1% for FY-2025 , which is above its 5 year median of 7.79% indicating increasing margins.
Q.4 Net Profit Margin of Zuari Industries Ltd?
Zuari Industries Ltd Net Profit Margin is -4.29% for FY-2025 , is below with its 5 year median of 2.51%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 6.4 6.4
Operating Profit Margin 8.1 7.79
Net Profit Margin -4.29 2.51
Q.5 Return on Asset of Zuari Industries Ltd?
Zuari Industries Ltd Return on Asset is -0.75%, which is below its 5 year historical median of 0.34%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Zuari Industries Ltd?
Zuari Industries Ltd Return on equity is -1.1% for FY-2025 , which is below its historical median of 0.58%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Zuari Industries Ltd?
Zuari Industries Ltd Return on capital employed is 2.15% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Zuari Industries Ltd?
Zuari Industries Ltd Cash conversion cycle is 175 days, below its historical median of 175 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.17 0.18
ROE -1.1 0.58
ROCE 2.15 4.45
Cash Conversion Cycle 175 days 175 days
Q.9 Debt to Equity ratio of Zuari Industries Ltd?
Zuari Industries Ltd Debt-to-Equity ratio is 0.28 , which is lower with the industry average of 0.65 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Zuari Industries Ltd?
Zuari Industries Ltd Debt to cash flow from operations is 189.72 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zuari Industries Ltd?
Promoters hold 56.71% of the Zuari Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zuari Industries Ltd vs industry peers?
Zuari Industries Ltd revenue CAGR is 72.41% , compared to the industry median CAGR of 2.84% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 870.7 885.7
Gross Profit 55.7 53.2
Operating Profit 70 68
Net Profit -37 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.17 0.88
ROE -1.1 7.17
ROCE 2.15 9.31
Cash Conversion Cycle (days) 175.34 107

Valuation & price assessment

Q.1 Stock return of Zuari Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11.3% 27.8% 29.7% -3.3%
Q.3 Valuation ratios of Zuari Industries 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 238.6 7.52 20.55
Price to Book 0.22 0.12 1.03
Price to Sales 0.91 2.99 0.56
EV to EBITDA 9.23 5.15 8.72

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