ZF Commercial Vehicle Control System India Ltd (ZFCVINDIA) 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

Craftsman Auto

Endurance Tech

HBL Engineering

ZF Commercial

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Tube Investments

Sona BLW Precis.

Sundram Fasten.

Exide Inds.

Amara Raja Ener.

Why is ZF Commercial Vehicle Control System India Ltd ?

Company has a low Debt to Equity ratio (avg) at 0 times

Poor long term growth as Net Sales has grown by an annual rate of 8.48% over the last 5 years

Flat results in Sep 25

ROCE(HY) Lowest at 18.12%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.45 times
PBT LESS OI(Q) At Rs 100.90 cr has Fallen at -5.87%

With ROE of 14.2, it has a Expensive valuation with a 8.2 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 19.13%, its profits have risen by 17.9% ; the PEG ratio of the company is 3.2

High Institutional Holdings at 32.05%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 19.13% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ZF Commercial should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ZF Commercial for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

ZF Commercial

19.13%

0.59

32.16%

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)

8.48%

EBIT Growth (5y)

23.61%

EBIT to Interest (avg)

81.26

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

1.28

Tax Ratio

24.49%

Dividend Payout Ratio

7.93%

Pledged Shares

Institutional Holding

32.05%

ROCE (avg)

27.50%

ROE (avg)

14.37%

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

8.21

EV to EBIT

53.47

EV to EBITDA

42.33

EV to Capital Employed

16.62

EV to Sales

6.77

PEG Ratio

3.24

Dividend Yield

0.13%

ROCE (Latest)

31.08%

ROE (Latest)

14.15%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

5What is working for the Company

DPS(Y)

Highest at Rs 19.00

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 14,739.40 cr

-6What is not working for the Company

ROCE(HY)

Lowest at 18.12%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.45 times

PBT LESS OI(Q)

At Rs 100.90 cr has Fallen at -5.87%

EPS(Q)

Lowest at Rs 57.11

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Here's what is working for ZF Commercial

Dividend per Share (DPS) - Annually

Highest at Rs 19.00 and Grown

each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 14,739.40 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 ZF Commercial

Inventory Turnover Ratio- Half Yearly

Lowest at 1.45 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

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 100.90 cr has Fallen at -5.87%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 57.11

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)