Z F Steering (505163)

FairStock Score: 35/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I first ask whether Z F Steering is a wonderful business at a fair price. The current numbers do not convince me. The market cap is ₹953 Cr, yet latest quarterly net profit is only ₹7 Cr on sales of ₹143 Cr, a net margin near 4.9%. That annualizes to roughly ₹28 Cr, so the quoted P/E of 35.45 is rich. Graham would want earnings power to justify the price; this is still thin. ROE of 7.86% and ROCE of 5.62% are mediocre, not the high returns on capital that signal a moat. P/B of 1.86 is also not a bargain when book value is ₹553.09 and returns on that book are low. The 1000% profit growth looks spectacular, but it is a low-base effect; a PEG of 0.07 built on that number is misleading. Sales growth of 21.81% is genuinely encouraging, and a Piotroski F-score of 7/9 suggests improving financial health. However, the dividend yield is zero, so I receive no cash while I wait. Debt/equity is not available, and promoter holding is also undisclosed; I cannot fully judge leverage or skin in the game. The 52-week range from ₹570 to ₹1,140 reminds me this is a cyclical business, and auto-component profits can reverse quickly. FairStock's 35/100 mixed score matches my own caution. I need to see profit margins expand and remain through the cycle before treating this as a compounder. At this price, the market is paying for perfection; I prefer a margin of safety.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer