Zenith Steel Pipes & Industries Limited (ZENITHSTL) AI Stock Analysis

• Market Cap: ₹721.36M
• Dividend Yield: N/A
• Average Volume (3M): 25.16K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.64
• Revenue Growth: -36.62%
• EPS Growth: -37.94%
• Country: IN
• Employees: 166
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.05
• Shares Outstanding: 142,280,440
• 10 Day Avg. Volume: 42,357
• 30 Day Avg. Volume: 25,164
• PEG Ratio: -2.41
• Price to Book (P/B): -0.30
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 11.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ₹5.00 ▼(-30.94% Downside)

The score is weighed down primarily by weak financial performance (low/negative margins and negative equity implying elevated solvency risk) and bearish technical signals (price below all key moving averages with negative MACD). Valuation is only neutral (moderate P/E and no dividend yield data), providing limited offset.

Positive Factors

Improving operating cash flow

A rising operating cash flow trend is a durable sign of improving core cash generation, enhancing liquidity to cover working capital and interest. Sustained OCF growth would reduce reliance on external funding and support gradual deleveraging and operational stability over months.

Free cash flow improvement

Improving free cash flow reflects stronger conversion of earnings to spendable cash, giving management flexibility for capex, debt reduction, or restructuring. If persistent, higher FCF can materially ease solvency pressures from high leverage over a multi-month horizon.

Slight net margin recovery

A small improvement in net margin signals initial progress toward operational stabilization. While still very low, a sustained upward margin trend would indicate better pricing or cost control, essential for converting revenue into durable profits and supporting long-term viability.

Negative Factors

Negative equity and high leverage

Negative shareholders' equity and heavy leverage represent a structural solvency risk that impairs access to capital and increases refinancing vulnerability. Absent consistent cash flow improvement, this elevates long-term default and restructuring risk, limiting strategic flexibility.

Sharply declining revenue

A steep, persistent revenue decline undermines scale economics and market position. Over several months this erodes gross margins, reduces pricing leverage, and makes fixed-cost coverage harder, meaning profit recovery will require structural demand or market-share wins, not short-term fixes.

Negative EBIT/EBITDA and falling gross margin

Negative operating margins point to fundamental cost or pricing issues; without material restructuring, losses can persist and consume cash. This structural profitability shortfall pressures balance sheet health and makes sustained recovery dependent on deep, not temporary, operational improvements.

Zenith Steel Pipes & Industries Limited Business Overview & Revenue Model

Company Description

Zenith Steel Pipes & Industries Limited manufactures and sells steel pipes in India. It offers electric resistance welded black, galvanized, and helical submerged arc welded pipes. The company's products are used for various applications, such as agriculture and irrigation water distribution, bore-well, chilled water systems, green house, electricity conduits, sprinklers, construction water distribution, structural scaffolding and props, industrial general engineering, oil sector distribution of gas, poles, drill rods, firefighting systems, space frames, fences, container making, crude, transmission towers, piling, ash/slurry transportation, transportation of raw and potable water, and transportation of sewage disposal irrigation, as well as auto industry. It also exports its products to 79 countries. The company was formerly known as Zenith Birla (India) Limited and changed its name to Zenith Steel Pipes & Industries Limited in July 2020. Zenith Steel Pipes & Industries Limited was incorporated in 1960 and is based in Mumbai, India.

How the Company Makes Money

ZENITHSTL generates revenue primarily through the sale of its steel pipes and related products. The company's revenue model is anchored in direct sales to industrial clients, construction firms, and government contracts, which constitute a significant portion of its income. Key revenue streams include bulk orders for large construction projects, ongoing contracts with energy companies for pipeline infrastructure, and custom manufacturing services for specialized pipe requirements. Additionally, ZENITHSTL may benefit from strategic partnerships with suppliers and distributors, which enhance its market reach and operational efficiency. Factors contributing to its earnings include the demand for steel products in construction and infrastructure development, fluctuations in raw material costs, and the company's ability to maintain competitive pricing while ensuring high product quality.

Zenith Steel Pipes & Industries Limited Financial Statement Overview

Summary

Weak profitability and operations: declining revenue, sharply lower gross margin, and negative EBIT/EBITDA margins. Balance sheet risk is high due to negative equity and heavy leverage, partially offset by improving operating and free cash flow.

Income Statement

Zenith Steel Pipes & Industries Limited has experienced declining revenue over recent years, with a significant drop in gross profit margin in the most recent year. The company reported a net profit margin of 0.19% for 2025, a slight improvement from the previous year but still indicative of low profitability. The EBIT and EBITDA margins are negative, indicating operational challenges. Despite some improvement in net income, the company struggles to maintain profitability.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, which poses a significant financial risk. The equity ratio is negative, highlighting the company's reliance on debt financing. This high leverage and negative equity position indicate financial instability and potential solvency issues.

Cash Flow

The cash flow statement shows a positive trend in operating cash flow, which increased in the most recent fiscal year. The free cash flow has also improved, indicating better cash management. However, the free cash flow to net income ratio suggests that cash generation is not yet robust, considering the low net income levels.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.10B	1.19B	1.43B	1.48B	1.50B	557.39M
Gross Profit	573.43M	646.26M	246.96M	12.00K	448.85M	-80.38M
EBITDA	77.98M	49.13M	50.43M	-52.05M	237.83M	91.74M
Net Income	30.99M	2.25M	-6.96M	-143.84M	116.28M	-135.75M
Balance Sheet
Total Assets	0.00	1.59B	1.82B	1.69B	1.92B	1.36B
Cash, Cash Equivalents and Short-Term Investments	33.34M	33.34M	4.31M	58.79M	19.53M	28.73M
Total Debt	0.00	2.15B	2.15B	2.20B	2.05B	2.06B
Total Liabilities	2.57B	4.15B	4.39B	4.25B	4.34B	3.90B
Stockholders Equity	-2.57B	-2.57B	-2.57B	-2.56B	-2.42B	-2.54B
Cash Flow
Free Cash Flow	0.00	67.90M	33.58M	141.90M	-16.11M	158.29M
Operating Cash Flow	0.00	62.48M	47.44M	179.00M	-11.73M	164.42M
Investing Cash Flow	0.00	-15.61M	-24.18M	-42.87M	87.46M	-2.74M
Financing Cash Flow	0.00	-24.44M	-71.15M	-113.38M	-74.58M	-154.52M

Zenith Steel Pipes & Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZENITHSTL, the sentiment is Negative. The current price of 7.24 is above the 20-day moving average (MA) of 6.29, above the 50-day MA of 6.98, and below the 200-day MA of 7.66, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 26.39 is Positive, neither overbought nor oversold. The STOCH value of 12.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZENITHSTL.

Zenith Steel Pipes & Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANAKSIA	67 Neutral	₹4.20B	8.06	―	―	51.38%	-19.06%
HISARMETAL	63 Neutral	₹868.59M	35.17	―	0.61%	-1.81%	-45.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SALSTEEL	57 Neutral	₹3.28B	-26.03	―	―	0.19%	-2962.74%
SHAHALLOYS	52 Neutral	₹1.27B	95.98	―	―	-76.23%	―
JOCIL	51 Neutral	₹904.55M	58.46	―	0.34%	―	―
ZENITHSTL	43 Neutral	₹721.36M	16.96	―	―	-36.62%	-37.94%

Zenith Steel Pipes & Industries Limited Corporate Events

Zenith Steel Pipes Reports Positive Half-Year Financial Results

Zenith Steel Pipes & Industries Limited announced the approval of its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025. The results indicate a profit before tax of Rs. 156.10 lakhs for the half-year, reflecting a recovery from a loss in the previous year. This financial performance suggests a positive impact on the company’s operations and may enhance its market position, potentially benefiting stakeholders.

Zenith Steel Pipes Reports Improved Financial Performance in Q3 2025

Zenith Steel Pipes & Industries Limited announced its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025. The company reported a total income of Rs. 2,103.10 lakhs for the quarter, with a profit of Rs. 58.16 lakhs before tax. The results indicate a recovery from a loss in the previous year, showcasing improved financial performance. This announcement could positively impact the company’s market positioning and stakeholder confidence.