ZFCVINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials Overview

Profitability

ROCE: 20.2% and ROE: 15.1% — strong, indicating efficient use of capital and solid shareholder returns.

EPS: ₹253, with PAT slightly down from ₹125 Cr. to ₹120 Cr. — a 21.1% quarterly variation, showing stable earnings.

Debt-to-equity: 0.00 — debt-free, a major strength for long-term sustainability.

Dividend Yield: 0.14% — minimal, suggesting reinvestment focus.

Institutional Sentiment

FII holdings increased (+0.16%), DII holdings surged (+3.04%) — strong domestic institutional confidence.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 53.1 High vs. industry average (29.0) — reflects premium pricing.

P/B Ratio ~7.94 Elevated, typical for high-margin industrials.

PEG Ratio 1.03 Fairly valued relative to growth.

Intrinsic Value ~₹12,800–₹13,200 (est.) Current price of ₹13,449 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: ZF Commercial Vehicle Control Systems India Ltd. (ZFCVINDIA) specializes in manufacturing air brake actuation systems and advanced automotive components for commercial vehicles.

Strengths

Global parentage (ZF Group) brings cutting-edge technology and R&D.

Strong presence in OEM and aftermarket segments.

High operating margins and zero debt enhance financial flexibility.

Challenges

High valuation multiples and low trading volume.

RSI at 42.6 — neutral zone, MACD at -67.3 — bearish momentum.

📈 Entry Zone & Technicals

DMA 50: ₹13,649, DMA 200: ₹13,294 — price is slightly below short-term average, indicating mild weakness.

RSI: 42.6 — approaching oversold territory.

MACD: -67.3 — bearish crossover.

📌 Entry Zone: ₹12,800–₹13,200 — attractive for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹14,771–₹15,800

2026 Target: ₹17,500–₹19,500

2027 Target: ₹19,500–₹21,000

2030 Target: ₹25,000+

Holding Strategy: ZFCVINDIA is a high-quality industrial play with strong fundamentals, zero debt, and global backing. Ideal for long-term investors seeking exposure to commercial vehicle automation and safety systems. Accumulate during technical weakness and hold through cycles.

You can explore ZFCVINDIA’s forecast and valuation breakdown for deeper insights

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