Z F Steering (505163)
CyclicalFairStock Score: 35/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,030.95 |
| Market Cap | ₹953.32 Cr |
| P/E Ratio | 35.45 |
| ROCE | 5.62% |
| ROE | 7.86% |
| Dividend Yield | 0% |
| Profit Growth | 1,000% |
| Debt/Equity | — |
| Sales Growth | 21.81% |
| 52-Week Range | ₹570.1 — ₹1,098 |
| Sector | Auto Components |
| Book Value | ₹553.09 |
Strengths
- Reported profit growth of 1000% shows strong earnings recovery, though from a low base.
- Sales growth of 21.81% indicates expanding business activity.
- Piotroski F-Score of 7/9 points to improving financial health.
- Book value per share of ₹553.09 gives a reference point; P/B of 1.86 is not extreme on its face.
Concerns
- P/E of 35.45 is high relative to the latest quarterly net profit of ₹7 Cr.
- ROE of 7.86% and ROCE of 5.62% are mediocre and do not suggest a durable moat.
- Zero dividend yield means no cash return while waiting for growth to materialise.
- Debt/Equity and promoter holding are undisclosed, leaving leverage and ownership unclear.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer