Check Before You Invest : ZR2 Bioenergy Ltd

Q: Which industry/sub-sector does ZR2 Bioenergy Ltd belong to?

ZR2 Bioenergy Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is ZR2 Bioenergy Ltd a good quality company?

ZR2 Bioenergy Ltd is a weak quality company, based on a inconsistent 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 ZR2 Bioenergy Ltd undervalued or overvalued?

ZR2 Bioenergy 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: 257.77, Historic Median: 199.30. Price to Book, Current: 1.07, Historic Median: 1.31. Price to Sales, Current: -, Historic Median: -. EV to EBITDA, Current: 180.46, Historic Median: 167.94

Q: Is ZR2 Bioenergy Ltd a good buy now?

ZR2 Bioenergy 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

Q: Gross Profit margin of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.9% for FY-2025, which is in line with its 3-year median of 15.9%, indicating stable margins.

Q: Operating Profit Margin of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -25.44% for FY-2025, which is below its 3-year median of 4.15% indicating decreasing margins.

Q: Net Profit Margin of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Net Profit Margin is 5.5% for FY-2025, is below its 3-year median of 24.73%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 15.9, Historic Median: 15.9. Operating Profit Margin (%), Current: -25.44, Historic Median: 4.15. Net Profit Margin (%), Current: 5.5, Historic Median: 24.73

Q: Return on Asset of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Return on Asset is 0.09%, which is below its 3-year historical median of 0.34%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Return on capital employed is 0.22% for FY-2025, which is below its 3-year historical median of 0.45%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q: Return on Equity (ROE) of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Return on equity is 0.49% for FY-2025, which is below its 3-year historical median of 0.82%, indicating the business is making worse use of its shareholders capital.

Check Before You Invest : ZR2 Bioenergy Ltd

BSE: 506640 NSE: ISIN: INE218N01021

| Sector: Chemicals & Fertilizers | Industry: Chemicals

Snapshot

Q.1 Which industry/sub-sector does ZR2 Bioenergy Ltd belong to?

ZR2 Bioenergy Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is ZR2 Bioenergy Ltd a good quality company?

ZR2 Bioenergy Ltd is a weak quality company, based on a inconsistent 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 ZR2 Bioenergy Ltd undervalued or overvalued?

ZR2 Bioenergy 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	3-year Historic Median
Price to Earnings	257.77	199.30
Price to Book	1.07	1.31
Price to Sales	-	-
EV to EBITDA	180.46	167.94

Q.4 Is ZR2 Bioenergy Ltd a good buy now?

ZR2 Bioenergy 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

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.

Q.1 Gross Profit margin of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.9% for FY-2025, which is in line with its 3-year median of 15.9%, indicating stable margins.

Q.2 Operating Profit Margin of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -25.44% for FY-2025, which is below its 3-year median of 4.15% indicating decreasing margins.

Q.3 Net Profit Margin of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Net Profit Margin is 5.5% for FY-2025, is below its 3-year median of 24.73%, indicating decreasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	15.9	15.9
Operating Profit Margin (%)	-25.44	4.15
Net Profit Margin (%)	5.5	24.73

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Return on Asset is 0.09%, which is below its 3-year historical median of 0.34%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Return on capital employed is 0.22% for FY-2025, which is below its 3-year historical median of 0.45%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Return on equity is 0.49% for FY-2025, which is below its 3-year historical median of 0.82%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Debt-to-Equity ratio is 4.74, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of ZR2 Bioenergy Ltd?

ZR2 Bioenergy Ltd Debt to cash flow from operations is 2.59, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of ZR2 Bioenergy Ltd?

Q.1 Promoter shareholding and pledge status of ZR2 Bioenergy Ltd?

Promoters hold 61.00% of the ZR2 Bioenergy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ZR2 Bioenergy Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ZR2 Bioenergy Ltd vs industry peers?

ZR2 Bioenergy Ltd revenue CAGR is 8.70%, compared to the industry median CAGR of 4.7%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-	4.7
Gross Profit Growth (%)	0	5.6
Operating Profit Growth (%)	0	2.1
Net Profit Growth (%)	0	1

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	0.02	0.92
ROE (%)	0.49	8.03
ROCE (%)	0.22	10.27
Cash Conversion Cycle (days)	215.85	63

Valuation & price assessment

Q.1 Stock return of ZR2 Bioenergy Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 29.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	29.5%	82.4%	32.5%	-59.4%

Q.2 Valuation ratios of ZR2 Bioenergy Ltd vs historical?

The current P/E ratio of 257.77 is higher than its historical median of 199.30, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	257.77	199.30	32.16
Price to Book	1.07	1.31	2.28
Price to Sales	-	-	1.89
EV to EBITDA	180.46	167.94	15.86

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Check Before You Invest : ZR2 Bioenergy Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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