Check Before You Invest : ZF Commercial Vehicle Control Systems India Ltd

Q: Which industry/sub-sector does ZF Commercial Vehicle Control Systems India Ltd belong to?

ZF Commercial Vehicle Control Systems India Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q: Is ZF Commercial Vehicle Control Systems India Ltd a good quality company?

ZF Commercial Vehicle Control Systems India Ltd is a good quality company, based on a consistently good 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 Commercial Vehicle Control Systems India Ltd undervalued or overvalued?

ZF Commercial Vehicle Control Systems India Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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: 55.43, Historic Median: 73.36. Price to Book, Current: 7.64, Historic Median: 8.01. Price to Sales, Current: 6.92, Historic Median: 6.60. EV to EBITDA, Current: 32.15, Historic Median: 41.68

Q: Is ZF Commercial Vehicle Control Systems India Ltd a good buy now?

ZF Commercial Vehicle Control Systems India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd revenue growth is 0.5% for FY-2025, which is below its 5-year CAGR of 14.54%, indicating slower growth.

Q: Gross Profit margin of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.9% for FY-2025, which is above its 5-year median of 15.2%, indicating increasing margins.

Q: Operating Profit Margin of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.46% for FY-2025, which is above its 5-year median of 13.65% indicating increasing margins.

Q: Net Profit Margin of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Net Profit Margin is 12.06% for FY-2025, is above its 5-year median of 9.22%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 18.9, Historic Median: 15.2. Operating Profit Margin (%), Current: 16.46, Historic Median: 13.65. Net Profit Margin (%), Current: 12.06, Historic Median: 9.22

Q: Return on Asset of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Return on Asset is 12.96%, which is above its 5-year historical median of 11.31%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Return on capital employed is 20.42% for FY-2025, which is above its 5-year historical median of 19.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : ZF Commercial Vehicle Control Systems India Ltd

Snapshot

Q.1 Which industry/sub-sector does ZF Commercial Vehicle Control Systems India Ltd belong to?

ZF Commercial Vehicle Control Systems India Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is ZF Commercial Vehicle Control Systems India Ltd a good quality company?

ZF Commercial Vehicle Control Systems India Ltd is a good quality company, based on a consistently good 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 Commercial Vehicle Control Systems India Ltd undervalued or overvalued?

ZF Commercial Vehicle Control Systems India Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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	55.43	73.36
Price to Book	7.64	8.01
Price to Sales	6.92	6.60
EV to EBITDA	32.15	41.68

Q.4 Is ZF Commercial Vehicle Control Systems India Ltd a good buy now?

ZF Commercial Vehicle Control Systems India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd revenue growth is 0.5% for FY-2025, which is below its 5-year CAGR of 14.54%, indicating slower growth.

Q.2 Gross Profit margin of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.9% for FY-2025, which is above its 5-year median of 15.2%, indicating increasing margins.

Q.3 Operating Profit Margin of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.46% for FY-2025, which is above its 5-year median of 13.65% indicating increasing margins.

Q.4 Net Profit Margin of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Net Profit Margin is 12.06% for FY-2025, is above its 5-year median of 9.22%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	18.9	15.2
Operating Profit Margin (%)	16.46	13.65
Net Profit Margin (%)	12.06	9.22

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Return on Asset is 12.96%, which is above its 5-year historical median of 11.31%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Return on capital employed is 20.42% for FY-2025, which is above its 5-year historical median of 19.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Return on equity is 15.29% for FY-2025, which is above its 5-year historical median of 14.05%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Cash conversion cycle is 72 days, above its 5-year historical median of 55 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.09	1.09
ROE (%)	15.29	14.05
ROCE (%)	20.42	19.13
Cash Conversion Cycle	72 days	55 days

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

Q.9 Debt to Equity ratio of ZF Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Debt-to-Equity ratio is 0.00, 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 Commercial Vehicle Control Systems India Ltd?

ZF Commercial Vehicle Control Systems India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ZF Commercial Vehicle Control Systems India Ltd?

Q.1 Promoter shareholding and pledge status of ZF Commercial Vehicle Control Systems India Ltd?

Promoters hold 60.00% of the ZF Commercial Vehicle Control Systems India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ZF Commercial Vehicle Control Systems India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ZF Commercial Vehicle Control Systems India Ltd vs industry peers?

ZF Commercial Vehicle Control Systems India Ltd revenue CAGR is 14.54%, compared to the industry median CAGR of 11.89%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	0.5	11.9
Gross Profit Growth (%)	11.5	16.2
Operating Profit Growth (%)	11	14.7
Net Profit Growth (%)	13.3	20.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.09	1.24
ROE (%)	15.29	11.65
ROCE (%)	20.42	13.5
Cash Conversion Cycle (days)	72.42	46

Valuation & price assessment

Q.1 Stock return of ZF Commercial Vehicle Control Systems India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 9.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	9.8%	17%	12.3%	13.4%

Q.2 Valuation ratios of ZF Commercial Vehicle Control Systems India Ltd vs historical?

The current P/E ratio of 55.43 is lower than its historical median of 73.36, 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	55.43	73.36	28.71
Price to Book	7.64	8.01	2.99
Price to Sales	6.92	6.60	1.35
EV to EBITDA	32.15	41.68	11.85

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Check Before You Invest : ZF Commercial Vehicle Control Systems India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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