Z F Steering Gear (India) Ltd (ZFSTEERING) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jay Bharat Maru.

Veljan Denison

Munjal Showa

Munjal Auto Inds

Z F Steering

Menon Bearings

Enkei Wheels

Automotive Stamp

Hind.Composites

Kinetic Engg.

IST

Why is Z F Steering Gear (India) Ltd ?

Poor Management Efficiency with a low ROCE of 3.76%

The company has been able to generate a Return on Capital Employed (avg) of 3.76% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -28.65% of over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(9M) At Rs 6.26 cr has Grown at 52.68%
PBT LESS OI(Q) At Rs -0.85 cr has Fallen at -211.5% (vs previous 4Q average)
PAT(Q) At Rs -0.39 cr has Fallen at -112.3% (vs previous 4Q average)

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -47.64% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Z F Steering for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Z F Steering

-47.64%

-0.91

52.64%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.70%

EBIT Growth (5y)

-28.65%

EBIT to Interest (avg)

14.13

Debt to EBITDA (avg)

1.29

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.89

Tax Ratio

58.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

3.47%

ROE (avg)

5.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.52

EV to EBIT

85.83

EV to EBITDA

14.69

EV to Capital Employed

1.43

EV to Sales

1.62

PEG Ratio

Dividend Yield

ROCE (Latest)

1.67%

ROE (Latest)

2.24%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 76.90 cr

-19What is not working for the Company

INTEREST(9M)

At Rs 6.26 cr has Grown at 52.68%

PBT LESS OI(Q)

At Rs -0.85 cr has Fallen at -211.5% (vs previous 4Q average

PAT(Q)

At Rs -0.39 cr has Fallen at -112.3% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 1.50 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.71 times

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Here's what is working for Z F Steering

Cash and Cash Equivalents - Half Yearly

Highest at Rs 76.90 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Z F Steering

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -0.85 cr has Fallen at -211.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 0.76 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -0.39 cr has Fallen at -112.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3.18 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Nine Monthly

At Rs 6.26 cr has Grown at 52.68%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.50 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio- Half Yearly

Lowest at 0.71 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio