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ZFCVINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ZFCVINDIA | Market Cap | 25,902 Cr. | Current Price | 13,687 ₹ | High / Low | 16,665 ₹ |
| Stock P/E | 52.2 | Book Value | 1,794 ₹ | Dividend Yield | 0.14 % | ROCE | 20.2 % |
| ROE | 15.1 % | Face Value | 5.00 ₹ | DMA 50 | 14,555 ₹ | DMA 200 | 13,979 ₹ |
| Chg in FII Hold | -0.42 % | Chg in DII Hold | 0.43 % | PAT Qtr | 145 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 34.2 | MACD | -384 | Volume | 8,918 | Avg Vol 1Wk | 25,682 |
| Low price | 11,552 ₹ | High price | 16,665 ₹ | PEG Ratio | 1.01 | Debt to equity | 0.02 |
| 52w Index | 41.8 % | Qtr Profit Var | 15.7 % | EPS | 259 ₹ | Industry PE | 25.0 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT improved from 106 Cr. to 145 Cr., showing steady growth. EPS at 259 ₹ is strong, reflecting solid earnings power.
- Margins & Returns: ROCE at 20.2% and ROE at 15.1% highlight efficient capital utilization and healthy shareholder returns.
- Debt: Debt-to-equity ratio of 0.02 indicates negligible leverage, ensuring strong financial stability.
- Cash Flow: Supported by profitability and low debt, enabling reinvestment capacity.
💹 Valuation
- P/E Ratio: 52.2 vs Industry PE of 25.0 → Overvalued relative to peers.
- P/B Ratio: Current Price 13,687 ₹ vs Book Value 1,794 ₹ → High premium.
- PEG Ratio: 1.01 → Fair valuation relative to growth prospects.
- Intrinsic Value: Current price trades at a premium, but supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
- Leading player in automotive components and technology solutions.
- Strong brand presence and global scale provide competitive advantage.
- High ROCE and ROE reflect superior efficiency and operational strength.
📈 Technicals & Entry Zone
- RSI at 34.2 → Oversold territory, potential accumulation zone.
- MACD negative (-384) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 13,200–13,500 ₹.
- Long-Term Holding: Strong fundamentals make it a solid long-term hold despite valuation premium.
✅ Positive
- Strong EPS at 259 ₹ supports valuation strength.
- Low debt-to-equity ratio ensures financial resilience.
- Quarterly PAT growth highlights operational improvement.
⚠️ Limitation
- High P/E ratio compared to industry peers.
- Premium valuation relative to book value.
- Weak technical momentum with negative MACD.
📉 Company Negative News
- FII holdings decreased by 0.42%, showing reduced foreign investor confidence.
- Stock has corrected from its 52-week high of 16,665 ₹ to current levels.
📈 Company Positive News
- DII holdings increased by 0.43%, reflecting domestic institutional support.
- Quarterly PAT improved from 106 Cr. to 145 Cr., showing earnings resilience.
- 52-week performance up 41.8%, reflecting investor confidence.
🏭 Industry
- Industry PE at 25.0 suggests sector trades at lower multiples.
- ZFCVINDIA commands premium valuation due to strong fundamentals and leadership in automotive technology.
🔎 Conclusion
ZFCVINDIA demonstrates strong fundamentals with excellent return ratios, low debt, and consistent profitability. While valuations are stretched compared to industry peers, the PEG ratio suggests fair growth alignment. Entry is favorable near 13,200–13,500 ₹ for long-term investors. Despite short-term technical weakness, the company remains a solid long-term hold backed by strong industry positioning and operational efficiency.