⚠ 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: 3.8
| Stock Code | ZENTEC | Market Cap | 13,069 Cr. | Current Price | 1,447 ₹ | High / Low | 2,268 ₹ |
| Stock P/E | 60.5 | Book Value | 195 ₹ | Dividend Yield | 0.14 % | ROCE | 32.9 % |
| ROE | 24.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,371 ₹ | DMA 200 | 1,448 ₹ |
| Chg in FII Hold | -0.40 % | Chg in DII Hold | -0.07 % | PAT Qtr | 47.8 Cr. | PAT Prev Qtr | 46.2 Cr. |
| RSI | 62.4 | MACD | 23.2 | Volume | 4,80,516 | Avg Vol 1Wk | 4,94,646 |
| Low price | 1,223 ₹ | High price | 2,268 ₹ | PEG Ratio | 0.15 | Debt to equity | 0.00 |
| 52w Index | 21.4 % | Qtr Profit Var | 23.8 % | EPS | 23.9 ₹ | Industry PE | 54.2 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT improved from 46.2 Cr. to 47.8 Cr., showing steady growth. EPS at 23.9 ₹ is healthy.
- Margins & Returns: ROCE at 32.9% and ROE at 24.6% highlight excellent efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.00 indicates zero leverage, ensuring strong financial stability.
- Cash Flow: Strong profitability and no debt support robust cash generation.
💹 Valuation
- P/E Ratio: 60.5 vs Industry PE of 54.2 → Slightly overvalued relative to peers.
- P/B Ratio: Current Price 1,447 ₹ vs Book Value 195 ₹ → High premium.
- PEG Ratio: 0.15 → Attractive valuation relative to growth.
- Intrinsic Value: Current price trades at a premium, but supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
- Technology and engineering solutions provider with diversified offerings.
- Strong efficiency metrics (ROCE & ROE) reflect competitive advantage.
- Debt-free balance sheet enhances resilience and growth potential.
📈 Technicals & Entry Zone
- RSI at 62.4 → Slightly overbought, caution for short-term entry.
- MACD positive (23.2) → Bullish momentum, trend remains strong.
- Entry Zone: Attractive accumulation between 1,400–1,430 ₹.
- Long-Term Holding: Strong fundamentals make it a solid long-term hold.
✅ Positive
- High ROCE (32.9%) and ROE (24.6%) indicate excellent efficiency.
- Debt-free balance sheet ensures financial resilience.
- PEG ratio of 0.15 suggests attractive valuation relative to growth.
⚠️ Limitation
- P/E ratio of 60.5 is slightly above industry average, indicating premium valuation.
- Stock trades at a high premium to book value.
- RSI indicates overbought levels, short-term correction possible.
📉 Company Negative News
- FII holdings decreased by 0.40%, showing reduced foreign investor confidence.
- DII holdings decreased by 0.07%, reflecting weaker domestic institutional support.
- Stock has corrected from its 52-week high of 2,268 ₹ to current levels.
📈 Company Positive News
- Quarterly PAT improved slightly, showing earnings resilience.
- 52-week performance up 21.4%, reflecting investor confidence.
- Strong EPS at 23.9 ₹ supports valuation strength.
🏭 Industry
- Industry PE at 54.2 suggests sector trades at high multiples.
- ZENTEC commands premium valuation due to strong fundamentals and efficiency metrics.
🔎 Conclusion
ZENTEC demonstrates strong fundamentals with excellent return ratios, debt-free balance sheet, and consistent profitability. While valuations are slightly stretched compared to industry peers, the PEG ratio indicates attractive growth potential. Entry is favorable near 1,400–1,430 ₹ for long-term investors. Despite short-term overbought signals, the company remains a solid long-term hold backed by strong efficiency and operational resilience.