ZFCVINDIA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

ZF CV India (ZFCVINDIA) boasts one of the cleanest balance sheets in its segment, combining high capital efficiency and a near-debt-free structure with consistent profitability. While the valuation is steep, the fundamentals suggest a robust long-term story driven by technological prowess and industry positioning.

🔍 Core Financial Strength

Return Metrics

ROCE: 20.3%, ROE: 15.4% — impressive, signaling excellent capital utilization

EPS: ₹243 — highly profitable, showcasing strength in core operations

Quarterly PAT stable at ₹127 Cr → ₹125 Cr — good consistency

Balance Sheet & Efficiency

Debt-to-Equity: 0.02 — virtually debt-free

Dividend Yield: 0.14% — low payout suggests reinvestment into growth initiatives

Book Value: ₹1,695 vs CMP ₹13,251 — premium valuation justified by quality and earnings

💰 Valuation Overview

Metric Value Insight

P/E Ratio 54.5 Richly valued; investors expect strong sustained growth

P/B Ratio ~7.82 Market is pricing future growth well above book assets

PEG Ratio 1.03 Reasonable given high EPS and steady growth

Valuation indicates optimism, with fundamentals to back it. PEG >1 suggests price might be slightly ahead of earnings momentum but not irrational.

🧪 Business Model & Competitive Position

Core Segment: Commercial Vehicle (CV) components and automotive technologies

Strengths

Proprietary tech, focus on safety, mobility, and automation

Strong OEM relationships and global pedigree from ZF Group

Moat: High entry barriers due to technical complexity and regulatory adherence

Tailwinds

Growing CV sales in India

Electrification trends and supply chain localization

📉 Technicals & Market Sentiment

RSI: 49.8 — neutral zone, no immediate signal

MACD: 34.8 — bullish momentum building

DMA Positioning

Price near 50-DMA (₹13,168) and 200-DMA (₹13,078) — consolidation phase

52W Index: 45.1% — room for upside from recent lows

🎯 Entry Strategy & Long-Term View

Suggested Entry Zone: ₹12,800–₹13,200 — near DMA supports for long-term accumulation

Outlook (12–24 months): ₹15,500–₹17,000 potential if earnings trajectory remains intact

Investor Type

Ideal for growth-focused investors looking for quality in auto ancillaries

Not suited for short-term trades due to low liquidity and high valuation

Want me to run scenario modeling based on CV growth forecasts or break down ZF CV’s value drivers compared to Bosch and Sundram Fasteners? I’d love to dig deeper with you. 🔧🚛📈

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