ZF Steering Gear (India) Ltd - Stock Valuation and Financial Performance

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

ZF Steering Gear (I) Share Price

1,733.80 -23.25 -1.32%
as on 05-Nov'24 00:00

DeciZen - make an informed investing decision on ZF Steering Gear (I)

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

ZF Steering Gear (India) stock performance -

mw4me loader
P/E Ratio (SA):
31.92
Market Cap:
1,604.6 Cr.
52-wk low:
760
52-wk high:
1,947

Is ZF Steering Gear (India) Ltd an attractive stock to invest in?

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

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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 17.1%20.5%18.4%15.3%-2.8%1%1.8%7.3%8.6%12%-
Value Creation
Index
0.20.50.30.1-1.2-0.9-0.9-0.5-0.4-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 330381399425439287201313450478485
Sales YoY Gr.-15.4%4.6%6.5%3.5%-34.8%-29.7%55.3%44%6.1%-
Adj EPS 3548.354.848.145.33.6-89.124.632.455.4
YoY Gr.-38%13.4%-12.2%-5.8%-92.1%-321.7%NA170.3%31.7%-
BVPS (₹) 273.5308.1373.2417.3406404.7415.3435.6462.6510.6526.5
Adj Net
Profit
31.843.849.743.641.13.3-7.28.322.329.450
Cash Flow from Ops. 48.266.762.667.572.774.9-26.315.250.542.7-
Debt/CF from Ops. 0.50.510.90.60-1.21.80.70.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.2%1.7%33.4%6.1%
Adj EPS -0.9%-6.5%NA31.7%
BVPS7.2%4.7%7.1%10.4%
Share Price 8.1% 34.5% 56.1% 115.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
13.416.616.112.2110.9-22.15.56.710.7
Op. Profit
Mgn %
17.520.720.620.917.713.79.21312.611.110.7
Net Profit
Mgn %
9.611.512.510.39.41.1-3.62.656.210.4
Debt to
Equity
0.10.10.20.20.100.10.10.10.1-
Working Cap
Days
948411014715217520918515416967
Cash Conv.
Cycle
242133546171117119999935

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 10.70%

Sales growth is growing at healthy rate in last 3 years 33.36%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 5.43%

Latest Financials - ZF Steering Gear (India) Ltd.

Standalone Consolidated
TTM EPS (₹) 55.4 46.5
TTM Sales (₹ Cr.) 485 485
BVPS (₹.) 526.5 516.2
Reserves (₹ Cr.) 469 459
P/BV 3.36 3.43
PE 31.92 38.02
From the Market
52 Week Low / High (₹) 760.00 / 1947.00
All Time Low / High (₹) 2.50 / 2118.00
Market Cap (₹ Cr.) 1,605
Equity (₹ Cr.) 9.1
Face Value (₹) 10
Industry PE 53.8

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

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of ZF Steering Gear (I)

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales330381399425439287201313450478
Operating Expenses 272303317336364321183272394425
Manufacturing Costs20242424251816212932
Material Costs205222231246269172117188289306
Employee Cost 36434549514440475664
Other Costs 11141717198710162123
Operating Profit 5878828875-3418415653
Operating Profit Margin (%) 17.5%20.6%20.5%20.8%17.1%-11.8%9.1%13.0%12.5%11.0%
Other Income 96121011426211438
Interest 1223210011
Depreciation 23252833313238313233
Exceptional Items 0000-67670000
Profit Before Tax 43586361-1437303756
Tax 7131314-123-212128
Profit After Tax 36455047-109182548
PAT Margin (%) 10.8%11.8%12.5%11.1%-0.3%-0.1%4.4%5.8%5.6%10.0%
Adjusted EPS (₹)39.249.754.851.9-1.4-0.39.820.128.152.6
Dividend Payout Ratio (%)26%25%15%15%0%0%0%0%18%15%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 248280339379368367377395420463
Share Capital 9999999999
Reserves 239270329370359358368386411454
Minority Interest0000000000
Debt2033575734131273629
Long Term Debt10816152110000
Short Term Debt1025414213030273629
Trade Payables39404551383430283532
Others Liabilities 2923394135115151014
Total Liabilities 336375479527475413443465501538

Fixed Assets

Gross Block271298148166202321334344352369
Accumulated Depreciation170192286191122159185208233
Net Fixed Assets101106120105111199175159144135
CWIP 11012672224
Investments 137165191232152107120119155142
Inventories25233940402338585866
Trade Receivables525576927749789010798
Cash Equivalents 322566105113
Others Assets18245153632320333480
Total Assets 336375479527475413443465501538

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 486763687375-26155143
PBT 4358636153-647303756
Adjustment 18232128261041417274
Changes in Working Capital -31-6-6638-46-27-7-8
Tax Paid -9-15-16-16-13-40-5-7-10
Cash Flow From Investing Activity -57-54-47-55-43-291-16-62-17
Capex -25-30-42-22-62-69-10-33-19-22
Net Investments -33-25-6-3519401016-2436
Others 21131111-19-32
Cash Flow From Financing Activity -2-14-16-10-28-4426-310-13
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid -1-2-2-3-2-300-1-1
Dividend Paid -7-240-9-90000-5
Others 612-131-17-4127-310-7
Net Cash Flow -11-102221-4-213
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)15.0117.0816.0913.13-0.35-0.082.384.736.2510.81
ROCE (%)17.0720.5218.3615.32-2.751.041.817.278.6312.02
Asset Turnover Ratio1.151.21.050.870.880.640.470.690.930.92
PAT to CFO Conversion(x)1.331.491.261.45N/AN/A-2.890.832.040.9
Working Capital Days
Receivable Days494654717080115988078
Inventory Days25202533334055554748
Payable Days706567716177100564040

ZF Steering Gear (India) Ltd Stock News

ZF Steering Gear (India) Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of ZF Steering Gear (I) on 05-Nov-2024 00:00 is ₹1,733.8.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 05-Nov-2024 00:00 the market cap of ZF Steering Gear (I) stood at ₹1,604.6.
The latest P/E ratio of ZF Steering Gear (I) as of 05-Nov-2024 00:00 is 31.92.
The latest P/B ratio of ZF Steering Gear (I) as of 05-Nov-2024 00:00 is 3.36.
The 52-week high of ZF Steering Gear (I) is ₹1,947 and the 52-week low is ₹760.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of ZF Steering Gear (I) is ₹484.8 ( Cr.) .

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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