⚠ 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.
ZFCVINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | ZFCVINDIA | Market Cap | 28,857 Cr. | Current Price | 15,210 ₹ | High / Low | 15,848 ₹ |
| Stock P/E | 60.5 | Book Value | 1,794 ₹ | Dividend Yield | 0.12 % | ROCE | 20.2 % |
| ROE | 15.1 % | Face Value | 5.00 ₹ | DMA 50 | 14,215 ₹ | DMA 200 | 13,646 ₹ |
| Chg in FII Hold | -0.42 % | Chg in DII Hold | 0.43 % | PAT Qtr | 106 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 64.4 | MACD | 35.8 | Volume | 8,273 | Avg Vol 1Wk | 11,441 |
| Low price | 9,900 ₹ | High price | 15,848 ₹ | PEG Ratio | 1.17 | Debt to equity | 0.02 |
| 52w Index | 89.3 % | Qtr Profit Var | -2.62 % | EPS | 251 ₹ | Industry PE | 28.0 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined from 120 Cr. to 106 Cr. (-2.62%), showing slight earnings pressure despite strong EPS of 251 ₹.
- Margins & Returns: ROCE at 20.2% and ROE at 15.1% highlight solid efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.02 reflects negligible leverage, ensuring financial stability.
- Cash Flows: Dividend yield of 0.12% is modest, suggesting reinvestment focus rather than high shareholder payouts.
💹 Valuation Indicators
- P/E Ratio: 60.5 vs industry average of 28.0 → trades at a steep premium.
- P/B Ratio: Current Price / Book Value ≈ 8.47 → significantly above intrinsic value.
- PEG Ratio: 1.17 → indicates fair valuation relative to growth.
- Intrinsic Value: Current price (15,210 ₹) appears expensive compared to fundamentals, but supported by strong returns.
🏢 Business Model & Competitive Advantage
- Operates in advanced engineering and automotive components with strong brand presence.
- High efficiency ratios (ROCE, ROE) provide competitive edge.
- Low debt enhances resilience and supports expansion.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 14,500 ₹ – 15,000 ₹, near DMA support levels.
- Long-Term Holding: Suitable for investors seeking exposure to engineering and automotive growth; staggered accumulation recommended due to premium valuation.
✅ Positive
- Strong ROCE (20.2%) and ROE (15.1%) highlight efficiency.
- Negligible debt-to-equity ratio (0.02) ensures financial safety.
- DII holdings increased (+0.43%), reflecting domestic institutional confidence.
⚠️ Limitation
- High P/E ratio (60.5) compared to industry average.
- P/B ratio (8.47) signals overvaluation relative to book value.
- Dividend yield of 0.12% provides limited shareholder returns.
📉 Company Negative News
- Quarterly PAT declined from 120 Cr. to 106 Cr.
- FII holdings decreased (-0.42%), showing reduced foreign investor confidence.
📈 Company Positive News
- Strong EPS of 251 ₹ supports valuation strength.
- DII holdings increased (+0.43%), supporting domestic confidence.
- Stock trading above both 50 DMA (14,215 ₹) and 200 DMA (13,646 ₹), indicating bullish momentum.
🏭 Industry
- Industry P/E at 28.0 indicates sector trades at lower multiples.
- Engineering and automotive sector benefits from industrial growth and export demand.
- ZFCVINDIA trades at a premium, reflecting strong fundamentals and growth expectations.
🔎 Conclusion
ZFCVINDIA demonstrates strong fundamentals with excellent efficiency, negligible debt, and robust EPS, but trades at a steep premium compared to industry peers. Entry is advisable near 14,500 ₹ – 15,000 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains strategically positioned in engineering and automotive components, though valuation signals caution.