⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ZENTEC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | ZENTEC | Market Cap | 12,070 Cr. | Current Price | 1,336 ₹ | High / Low | 2,268 ₹ |
| Stock P/E | 55.9 | Book Value | 195 ₹ | Dividend Yield | 0.15 % | ROCE | 32.9 % |
| ROE | 24.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,355 ₹ | DMA 200 | 1,478 ₹ |
| Chg in FII Hold | -0.40 % | Chg in DII Hold | -0.07 % | PAT Qtr | 47.8 Cr. | PAT Prev Qtr | 46.2 Cr. |
| RSI | 49.9 | MACD | 0.00 | Volume | 16,28,967 | Avg Vol 1Wk | 7,33,204 |
| Low price | 945 ₹ | High price | 2,268 ₹ | PEG Ratio | 0.14 | Debt to equity | 0.00 |
| 52w Index | 29.6 % | Qtr Profit Var | 23.8 % | EPS | 23.9 ₹ | Industry PE | 56.2 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from 46.2 Cr. to 47.8 Cr. (+23.8% YoY), showing consistent growth momentum.
- Margins & Returns: ROCE at 32.9% and ROE at 24.6% highlight excellent efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.00 reflects zero leverage, ensuring strong financial stability.
- Cash Flows: Dividend yield of 0.15% is modest, suggesting reinvestment focus for growth rather than high shareholder payouts.
💹 Valuation Indicators
- P/E Ratio: 55.9 vs industry average of 56.2 → trades in line with peers.
- P/B Ratio: Current Price / Book Value ≈ 6.85 → above intrinsic value.
- PEG Ratio: 0.14 → indicates undervaluation relative to growth.
- Intrinsic Value: Current price (1,336 ₹) appears attractive given strong earnings and growth potential.
🏢 Business Model & Competitive Advantage
- Operates in technology and engineering solutions with strong innovation-driven growth.
- High efficiency ratios (ROCE, ROE) provide competitive edge.
- Debt-free balance sheet enhances resilience and supports expansion.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,300 ₹ – 1,340 ₹, near DMA support levels.
- Long-Term Holding: Strong candidate for long-term portfolios focused on technology growth; staggered accumulation recommended.
✅ Positive
- Strong ROCE (32.9%) and ROE (24.6%) highlight efficiency.
- Debt-free balance sheet ensures financial safety.
- Quarterly PAT growth (+23.8% YoY) shows robust momentum.
⚠️ Limitation
- High P/B ratio (6.85) signals overvaluation relative to book value.
- Dividend yield of 0.15% provides limited shareholder returns.
- Stock trading slightly below DMA 50 (1,355 ₹) and DMA 200 (1,478 ₹), indicating weak near-term momentum.
📉 Company Negative News
- FII holdings decreased (-0.40%) and DII holdings decreased (-0.07%), showing reduced institutional confidence.
- RSI at 49.9 and flat MACD (0.00) suggest neutral technical outlook.
📈 Company Positive News
- Quarterly PAT improved sequentially from 46.2 Cr. to 47.8 Cr.
- Strong EPS of 23.9 ₹ supports valuation strength.
- High trading volumes reflect strong investor interest.
🏭 Industry
- Industry P/E at 56.2 indicates sector trades at similar multiples.
- Technology and engineering sector benefits from innovation and digital adoption.
- ZENTEC trades in line with industry, but PEG ratio suggests undervaluation relative to growth.
🔎 Conclusion
ZENTEC demonstrates strong fundamentals with excellent efficiency, debt-free balance sheet, and consistent profit growth. Despite modest dividend yield and premium valuation relative to book value, the company remains strategically positioned in technology-driven growth. Entry is advisable near 1,300 ₹ – 1,340 ₹ for long-term investors, with staggered accumulation to mitigate risks. Overall, ZENTEC offers a compelling long-term opportunity in the technology and engineering sector.