ZF Steering Gear (India) Limited

BSE: ZFSTEERING · Auto Components & Equipments

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52W Range₹570 – ₹1,021

Snapshot

Unlock ZF Steering Gear (India) Limited's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

ZF Steering Gear (India) Ltd. specialises in the manufacture and supply of hydraulic power and mechanical steering systems for the automotive industry. The company also operates a renewable energy segment focused on electricity generation via solar and wind assets.

Business Model

The company generates revenue primarily through the sale of steering components to automotive manufacturers and through the sale of power generated by its renewable energy infrastructure.

Growth Outlook

Growth is driven by the demand for advanced steering systems in the Indian automotive sector and the expansion of renewable energy capacity.

Key Risks

  • Cyclical Automotive Demand. The company's performance is highly sensitive to production volumes and cyclical trends within the Indian automotive manufacturing sector.
  • Input Cost Volatility. Fluctuations in the prices of raw materials, particularly steel and other metals, can significantly impact manufacturing margins.
  • Regulatory and Policy Risk. Changes in government policies regarding renewable energy incentives or automotive safety standards could affect operational profitability.
  • Technological Obsolescence. The rapid shift toward electric vehicles and autonomous driving technologies may necessitate significant R&D investment to maintain market relevance.

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Key Metrics

REVENUE

₹581 Cr

TTM · consolidated

+16.5%YoY

NET PROFIT

₹18 Cr

TTM · consolidated

+89.4%YoY

EPS

₹21.88

TTM · consolidated

+107.8%YoY

RETURN ON EQUITY

3.8%

TTM · consolidated

+1.8 ppYoY

RETURN ON CAPITAL EMPLOYED

8.1%

TTM · consolidated

+2.6 ppYoY

P/E

32.4×

Q1 FY27 · consolidated

32.4 vs 32.6x5Y avg

EV/EBITDA

8.2x

Q1 FY27 · consolidated

8.2 vs 9.1x5Y avg

EBITDA MARGIN

15.4%

TTM · consolidated

+0.8 ppYoY

NET PROFIT MARGIN

8.0%

Q1 FY27 · consolidated

+2.6 ppYoY

DEBT TO EQUITY

0.2%

Q1 FY27 · consolidated

+0.0 ppYoY

Peers · Auto Components & Equipments

CompanyMkt CapP/E (TTM)EV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
ZF Steering Gear (India) LimitedZFSTEERING
₹638 Cr32.4×8.2216.5%15.4%3.8%8.1%-31.0%
Enkei Wheels (India) LimitedENKEIWHEL
₹718 Cr30.7×8.8726.1%10.1%9.6%13.3%-19.0%
Automotive Stampings and Assemblies LimitedASAL
₹717 Cr22.7×12.0928.3%6.5%132.9%55.7%-28.0%
Kinetic Engineering Ltd.KINETICENG
₹609 Cr-53.2×237.1625.1%1.6%-9.7%-3.4%-22.0%
Triton ValvesTRITONV
₹581 Cr17.1×16.0521.9%7.0%15.1%22.7%-66.0%
Hindustan Composites LimitedHINDCOMPOS
₹575 Cr17.4×12.83-8.1%14.5%2.9%2.7%-15.7%

As of Q1 FY27

Financials