Zuari Industries Limited
Zuari Industries Limited Fundamental Analysis
Zuari Industries Limited (ZUARIIND.NS) shows moderate financial fundamentals with a PE ratio of 5.43, profit margin of 11.44%, and ROE of 2.38%. The company generates $10.3B in annual revenue with strong year-over-year growth of 15.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ZUARIIND.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakZUARIIND.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentZUARIIND.NS trades at attractive valuation levels.
Growth Score
ModerateZUARIIND.NS shows steady but slowing expansion.
Financial Health Score
ModerateZUARIIND.NS shows balanced financial health with some risks.
Profitability Score
ModerateZUARIIND.NS maintains healthy but balanced margins.
Key Financial Metrics
Is ZUARIIND.NS Expensive or Cheap?
P/E Ratio
ZUARIIND.NS trades at 5.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ZUARIIND.NS's PEG of -5.73 indicates potential undervaluation.
Price to Book
The market values Zuari Industries Limited at 0.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.86 times EBITDA. This is generally considered low.
How Well Does ZUARIIND.NS Make Money?
Net Profit Margin
For every $100 in sales, Zuari Industries Limited keeps $11.44 as profit after all expenses.
Operating Margin
Core operations generate 2.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.38 in profit for every $100 of shareholder equity.
ROA
Zuari Industries Limited generates $1.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zuari Industries Limited generates strong operating cash flow of $2.84B, reflecting robust business health.
Free Cash Flow
Zuari Industries Limited generates strong free cash flow of $2.72B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $91.39 in free cash annually.
FCF Yield
ZUARIIND.NS converts 42.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How ZUARIIND.NS Stacks Against Its Sector Peers
| Metric | ZUARIIND.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.43 | 25.30 | Better (Cheaper) |
| ROE | 2.38% | 1305.00% | Weak |
| Net Margin | 11.44% | -43804.00% (disorted) | Strong |
| Debt/Equity | 0.50 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.65 | 10.42 | Weak Liquidity |
| ROA | 1.46% | -1543535.00% (disorted) | Weak |
ZUARIIND.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zuari Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.57%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
74.88%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-230.69%
Industry Style: Cyclical, Value, Infrastructure
Declining