ZF Steering Gear (India) Ltd Stock Analysis

BSE: 505163 | NSE: ZFSTEERING | Auto Ancillary | Small Cap

BSE Share Price May 20, 15:25
464.90 6.75 (1.47%)

DeciZen - Make an Informed Decision on ZF Steering Gear (I)

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is ZF Steering Gear (India) Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that ZF Steering Gear (India) Ltd is a average quality company.

2. Is ZF Steering Gear (India) Ltd undervalued or overvalued?

The key valuation ratios of ZF Steering Gear (India) Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is ZF Steering Gear (India) Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of ZF Steering Gear (India) Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of ZF Steering Gear (I):

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
ZF Steering Gear (India) Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 15.7%8.8%4.8%12.7%15.4%14.4%10.9%9.9%1%-1.8%-
Value Creation Index 0.1-0.4-0.7-0.10.10.0-0.2-0.3-0.9-1.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 352313291330381399425439287201293
YoY Gr. Rt. %--11.2%-7%13.5%15.4%4.6%6.5%3.5%-34.8%-29.7%-
Adj EPS 39.321.612.13548.354.848.145.33.6-822.8
YoY Gr. Rt. %--45%-44.1%190.1%38%13.4%-12.2%-5.8%-92.1%-321.7%-
BVPS (₹) 222.5241.3248.7273.5308.1373.2417.3406404.7415.3431.9
Adj Net Profit 35.719.61131.843.849.743.641.13.3-7.221
Cash Flow from Ops. 58.447.625.848.266.762.667.572.774.9-26.3-
Debt/CF from Ops. 1.10.40.60.50.510.90.60-1.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -6%-12%-22%-29.7%
Adj EPS -183.8%-169.8%-155%-321.7%
BVPS 7.26.2-0.22.6
Share Price 4.2% -17.6% -1.4% 9.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 19.49.34.913.416.616.112.2110.9-25.4
Op. Profit Mgn % 19.420.620.217.520.720.620.917.713.79.212.3
Net Profit Mgn % 10.16.33.89.611.512.510.39.41.1-3.67.1
Debt to Equity 0.30.10.10.10.10.20.20.100.1-
Working Cap Days 798410094841101471521752090
Cash Conv. Cycle 3024212421335461711170

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 5.40%

Sales growth is good in last 4 quarters at 108.44%

Sales growth has been subdued in last 3 years -22.00%

Net Profit has been subdued in last 3 years -154.96%

Latest Financials - ZF Steering Gear (India) Ltd.

Standalone Consolidated
TTM EPS (₹) 22.8 48.4
TTM Sales (₹ Cr.) 293 439
BVPS (₹.) 431.9 0
Reserves (₹ Cr.) 383 326
P/BV 1.06 0.00
PE 20.13 9.51
From the Market
52 Week Low / High (₹) 392.05 / 575.00
All Time Low / High (₹) 2.50 / 2118.00
Market Cap (₹ Cr.) 416
Equity (₹ Cr.) 9.1
Face Value (₹) 10
Industry PE 32.4

Management X-Ray of ZF Steering Gear (I) :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *24.5224.5124.5124.5124.5113.8913.896.540.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About ZF Steering Gear (India) Ltd

ZF Steering Gear started in 1981 to manufacture Mechanical - worm & roller and integral hydraulic power steering gears in financial and technical collaboration with ZF Friedrichafen AG Germany, the world's largest independent steering gears manufacturer.

The factory of the company has workforce of 700 persons out of which more than 500 are qualified and experienced engineers working in various departments such as production, quality control, product development, design, heat treatment, marketing, etc for meeting the quality standard of manufacturing.

The factory is equipped with advanced specially designed machinery from ZF Germany for manufacturing critical components and includes systematic cluster of wide range of CNC machines and special purpose machines.

The factory has its own in-house heat treatment facility consisting of Sealed Quench Furnaces,Pit Carburised Furnaces for case Carburising, nitriding etc. The Heat Treatment department also has well equipped metallurgical laboratory for material testing. Present installed capacity is 1,40,000 units of mechanical steering gears and 2,70,000 units of power steering gears per annum, and  the sales-turnover of ZF India for the year 2007-2008 was Rs. 258 crore.

In view of the encouraging response from the automobile manufacturers of repute, expansion plans are in progress, for expanding the production capacity well in advance of mechanical steering gears to the level of 1,50,000 units and power steering gears 3,00,000 units.

Milestones :

  • 1983 Started commercial production of worm and roller steering gears for Bajaj Tempo Ltd. And Premier Auto Ltd.
  • 1986  Started supplies of HCV Power Steering to Ashok Leyland Ltd. Started supplies of HCV Power Steering to Tata Motors Ltd. Developed Nissan Carrier & Nissan Patrol Steering Gears. Developed & started production of steering gears for Punjab Tractors Ltd.
  • 1993 Developed and started supplies to Eicher Tractors Developed all types of Power Steering for RH & LH versions for Bus/ Truck applicationsDeveloped and started production of LCV Power Steering
  • 1998 Designed and developed Power Steering Gears for Sumo, Safari and 207 range of Tata vehicles Developed steering gears for Mahindra & Mahindra Tractors Designed and developed LCV Power Steering Gear for Tempo TravellerDesigned and developed Power Steering for Canter Range of vehicles of Eicher Motors
  • 2003 Developed LCV Power Steering Gears for trucks & buses of Swaraj Mazda Ltd. Started supplies of Servocom Steering Gears to Volvo, India. Developed Single drop arm worm & roller steering gears for Escorts Ltd. Developed Single drop arm worm & roller steering gears for New Holland Tractors (I) Pvt. Ltd. Started supplies for Ashok Leyland Ltd new developing models
  • 2005 Started supplies to L& T John Deere Pvt. Ltd.
  • 2006 Servocom Steering Gear for HCV, MAV, Busses. Rack & Pinion Power Steering Gear for Passenger Cars
  • 2009 -8046 Power Steering Gear Launched.
    Rack & Pinion Mech. Steering Launched.
  • 2012 - ZF steering Gear(India) successfully commisions 5MW solar power project.
    ZF Lenksysteme India Private Limited, Joint Venture Company in which the Company holds 26% paid-up capital of the Company, inauguratED their factory on April 26, 2012 at Pune.

Product range of the company includes:

  • Ball and Nut Power Steering Gear
  • Worm and Roller Manual Steering Gears
  • Rack and Pinion Power Steering Gears
  • Vane Pumps
  • Steering Columns
  • Bevel Gear Box
  • Universal Joints

The company is also engaged in new product developments

Different divisions of the company are :   Research & Development    Production Engineering    Heat Treatment

Achievements/ recognition :1. Quality Certification  -    - ISO/ TS 16949 : 2002 TUV : Rheinland     - DIN EN ISO - 14001:1996  TUV : Rheinland2. Awarded ISO 9001 Certification by BVQI.

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