Zen Technologies Limited Fundamental Analysis (NSE: ZENTEC.NS)
Zen Technologies Limited Fundamental Analysis (NSE: ZENTEC.NS)
Zen Technologies Limited (NSE: ZENTEC.NS) shows moderate financial fundamentals with a PE ratio of 82.19, profit margin of 28.13%, and ROE of 10.66%. The company generates $6.9B in annual revenue with weak year-over-year growth of 1.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.6/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze ZENTEC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakZENTEC.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateZENTEC.NS shows balanced valuation metrics.
Growth Score
WeakZENTEC.NS faces weak or negative growth trends.
Financial Health Score
ExcellentZENTEC.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateZENTEC.NS maintains healthy but balanced margins.
Key Financial Metrics
Is ZENTEC.NS Expensive or Cheap?
P/E Ratio
ZENTEC.NS trades at 82.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ZENTEC.NS's PEG of -2.49 indicates potential undervaluation.
Price to Book
The market values Zen Technologies Limited at 8.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 49.00 times EBITDA. This signals the market has high growth expectations.
How Well Does ZENTEC.NS Make Money?
Net Profit Margin
For every $100 in sales, Zen Technologies Limited keeps $28.13 as profit after all expenses.
Operating Margin
Core operations generate 32.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.66 in profit for every $100 of shareholder equity.
ROA
Zen Technologies Limited generates $8.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zen Technologies Limited produces operating cash flow of $1.15B, showing steady but balanced cash generation.
Free Cash Flow
Zen Technologies Limited generates strong free cash flow of $947.40M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.54 in free cash annually.
FCF Yield
ZENTEC.NS converts 0.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
82.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
23.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.010
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How ZENTEC.NS Stacks Against Its Sector Peers
| Metric | ZENTEC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 82.19 | 30.52 | Worse (Expensive) |
| ROE | 10.66% | 1172.00% | Weak |
| Net Margin | 28.13% | -20786.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 8.86 | 24.22 | Strong Liquidity |
| ROA | 8.96% | -1311221.00% (disorted) | Weak |
ZENTEC.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zen Technologies Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
475.83%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
321.02%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-306.87%
Industry Style: Cyclical, Value, Infrastructure
Declining