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ZF Steering Gear (India) Ltd. Stock Analysis

Small Cap
Evaluated by 352 users | BSE: 505163 | NSE: ZFSTEERING |
Auto Ancillary
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...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 20.29%15.72%8.76%4.78%12.66%15.4%14.38%10.88%9.92%1.03%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 298352313291330381399425439287
Y-o-Y Gr. Rt.-18.1%-11.2%-7%13.5%15.4%4.6%6.5%3.5%-34.8%
Adjusted EPS (Rs.) 40.1339.321.612.0735.0148.354.7548.0745.293.6
Y-o-Y Gr. Rt.--2.1%-45%-44.1%190.1%38%13.4%-12.2%-5.8%-92.1%
Book Value per Share (Rs.) 182.86222.45241.32248.68273.5308.12373.15417.3405.96404.69
Adjusted Net Profit 36.435.719.61131.843.849.743.641.13.3
Net Op. Cash Flow (Rs. Cr.) 31.258.447.625.848.266.762.667.572.775.6
Debt to Cash Flow from Ops 0.991.130.390.570.470.5210.940.630.03
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
ZF Steering Gear (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -0.4%-2.8%-10.4%-34.8%
Adjusted EPS -23.5%-36.6%-59.6%-92.1%
Book Value per Share 9.28.22.7-0.3
Share Price -0.1% -25.9% -37.3% -22.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 24.1519.399.314.9313.4116.6116.0712.1611.010.89
Operating Profit Margin (%) 21.319.3720.6320.2417.5420.6920.5620.9417.6513.72
Net Profit Margin (%) 12.2110.126.263.769.6111.4912.4610.279.351.14
Debt to Equity 0.190.330.090.070.090.120.180.170.120.01
Working Capital Days 7779841009484110147152175
Cash Conversion Cycle 27302421242133546171
Entity Percentage Holding
Promoters 67.45%
Institutions 0.01%
Non-Institutions 32.54%
Pledged *15.7116.4618.7026.9831.0724.5324.5224.5124.5124.51
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of ZF Steering Gear (India) Ltd.'s performance infers:

ZF Steering Gear (India) Ltd. earnings have declined by -36.6%, whereas share price has depreciated -25.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of ZF Steering Gear (India) Ltd. share prices over the last 10 years. Here is what we found out:

ZF Steering Gear (India) Ltd. share price has depreciated -3.7% annually over the past ten years.

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

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.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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