ZF Commercial Vehicle Control System India receives 'Hold' upgrade from MarketsMOJO, shows strong financials and confident promoters

ZF Commercial Vehicle Control System India, a leading player in the auto ancillary industry, has recently received an upgrade to 'Hold' by MarketsMOJO on April 29, 2024. This upgrade comes as the company has shown positive results for the last 8 consecutive quarters, with a PAT (HY) of Rs 206.52 crore, growing at a rate of 34.05%. The company's ROCE (HY) is also at its highest at 19.94%, and it has a strong cash position with cash and cash equivalents of Rs 1,311.26 crore.
One of the major shareholders of ZF Commercial Vehicle Control System India is its promoters, indicating their confidence in the company's performance. However, the company has shown poor long-term growth with a net sales growth rate of 5.05% and operating profit growth rate of 2.74% over the last 5 years.

Technically, the stock is currently in a mildly bearish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bearish trend. Additionally, with an ROE of 15.1, the stock is currently trading at an expensive valuation with a 10 price to book value. However, it is currently trading at a discount compared to its average historical valuations.

Despite the recent positive performance of the stock, its profits have risen by 48.3% while generating a return of 34.49% over the past year. This gives the company a PEG ratio of 1.3, indicating a slightly expensive valuation. Overall, with a 'Hold' rating from MarketsMOJO, investors may want to closely monitor the company's performance before making any investment decisions.