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

• Market Cap: ₹715.67M
• Dividend Yield: N/A
• Average Volume (3M): 25.16K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.45
• Revenue Growth: -36.62%
• EPS Growth: -37.94%
• Country: IN
• Employees: 166
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.10
• 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: ₹5.50 ▼(-24.03% Downside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

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

Operating cash flow improvement

Operating cash flow increased in the most recent year, demonstrating improved internal cash generation. Over 2-6 months this provides durable funding for working capital and near-term obligations, reducing immediate reliance on new debt and supporting stability while turnaround initiatives continue.

Free cash flow recovery

Free cash flow improvement signals better cash conversion and expense control versus prior periods. Sustained FCF supports deleveraging, reinvestment in operations, and gives management strategic flexibility to stabilize operations amid cyclical steel demand.

Modest net margin improvement

A small rise in net margin to 0.19% indicates early stabilization of profitability after deeper declines. If sustained, this shows initial effectiveness of cost controls or pricing actions and provides a foundation for incremental margin recovery over the medium term.

Negative Factors

Sharp revenue contraction

A greater-than-50% revenue decline reflects severe demand or market-share loss, reducing scale and pricing leverage. Over the next several months this constrains margin recovery, limits cash flow upside, and increases execution risk for any turnaround plan.

Negative equity and high leverage

Negative shareholder equity and heavy reliance on debt create structural solvency risk. This durable weakness limits access to new financing, raises refinancing risk during downturns, and forces prioritization of creditor claims over growth investments for the foreseeable term.

Negative operating margins and gross margin pressure

Negative EBIT/EBITDA and a sharply compressed gross margin indicate the core steel business is currently unprofitable at the operating level. Without structural cost or pricing fixes, sustained negative operating margins will erode cash and hinder recovery efforts over multiple quarters.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	934.74M	1.19B	1.43B	1.48B	1.50B	557.39M
Gross Profit	446.56M	646.26M	246.96M	12.00K	448.85M	-80.38M
EBITDA	89.39M	49.13M	50.43M	-52.05M	237.83M	91.74M
Net Income	42.53M	2.25M	-6.96M	-143.84M	116.28M	-135.75M
Balance Sheet
Total Assets	1.55B	1.59B	1.82B	1.69B	1.92B	1.36B
Cash, Cash Equivalents and Short-Term Investments	12.37M	33.34M	4.31M	58.79M	19.53M	28.73M
Total Debt	2.15B	2.15B	2.15B	2.20B	2.05B	2.06B
Total Liabilities	4.06B	4.15B	4.39B	4.25B	4.34B	3.90B
Stockholders Equity	-2.52B	-2.57B	-2.57B	-2.56B	-2.42B	-2.54B
Cash Flow
Free Cash Flow	-43.38M	67.90M	33.58M	141.90M	-16.11M	158.29M
Operating Cash Flow	-41.63M	62.48M	47.44M	179.00M	-11.73M	164.42M
Investing Cash Flow	-3.61M	-15.61M	-24.18M	-42.87M	87.46M	-2.74M
Financing Cash Flow	-11.16M	-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: Neutral
• 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 5.35, above the 50-day MA of 5.72, and below the 200-day MA of 7.41, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 12.29 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	₹3.27B	7.26	―	―	51.38%	-19.06%
HISARMETAL	63 Neutral	₹790.83M	16.16	―	0.61%	-1.81%	-45.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SALSTEEL	57 Neutral	₹3.97B	15.95	―	―	0.19%	-2962.74%
SHAHALLOYS	52 Neutral	₹1.20B	0.90	―	―	-76.23%	―
JOCIL	51 Neutral	₹904.55M	20.34	―	0.34%	―	―
ZENITHSTL	43 Neutral	₹715.67M	18.23	―	―	-36.62%	-37.94%