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

• Market Cap: ₹1.03B
• Dividend Yield: N/A
• Average Volume (3M): 25.16K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.51
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹8.00 ▲(10.96% Upside)

Zenith Steel Pipes & Industries Limited's overall stock score is primarily impacted by its financial instability, with high leverage and low profitability posing significant risks. Technical analysis shows weak momentum, and the valuation suggests the stock is expensive. These factors combine to create a challenging investment outlook.

Positive Factors

Cash Flow Improvement

Improved operating cash flow indicates better cash management and operational efficiency, providing more resources for strategic investments or debt reduction.

Market Reach

A broad market reach across domestic and international markets helps diversify revenue streams and reduces dependency on a single market, enhancing resilience.

Strategic Partnerships

Strategic partnerships can lead to increased market penetration and operational efficiencies, supporting long-term growth and competitive positioning.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability and potential solvency issues, which can limit strategic flexibility and increase risk.

Declining Revenue

Declining revenue trends suggest challenges in maintaining market share or pricing power, potentially impacting long-term profitability and growth.

Low Profitability

Sustained low profitability limits the company's ability to reinvest in growth initiatives and weather economic downturns, impacting long-term viability.

Zenith Steel Pipes & Industries Limited Business Overview & Revenue Model

Company Description

Zenith Steel Pipes & Industries Limited (ZENITHSTL) is a leading manufacturer and supplier of steel pipes and related products, serving a diverse range of sectors including construction, infrastructure, and energy. The company specializes in producing high-quality steel pipes that meet international standards, catering to both domestic and export markets. With a robust portfolio that includes seamless and welded pipes, ZENITHSTL is committed to innovation and sustainability in its manufacturing processes, aiming to provide durable and reliable solutions for its customers.

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

Zenith Steel Pipes & Industries Limited faces significant financial challenges. Despite some improvement in cash flow, the company struggles with profitability and high leverage. The negative equity and low margins pose substantial risks, indicating financial instability.

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: 7.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 7.21 is below the 20-day moving average (MA) of 7.53, below the 50-day MA of 8.21, and below the 200-day MA of 7.68, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 32.81 is Neutral, neither overbought nor oversold. The STOCH value of 22.26 is Neutral, 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
HISARMETAL	63 Neutral	₹846.18M	34.26	―	0.61%	-1.81%	-45.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MANAKSIA	58 Neutral	₹3.92B	8.24	―	―	51.38%	-19.06%
SALSTEEL	57 Neutral	₹3.62B	-28.19	―	―	0.19%	-2962.74%
SHAHALLOYS	52 Neutral	₹1.33B	101.68	―	―	-76.23%	―
ZENITHSTL	48 Neutral	₹1.03B	23.49	―	―	-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.

Zenith Steel Pipes Announces AGM Voting Results

Zenith Steel Pipes & Industries Limited announced the results of its 63rd Annual General Meeting held on September 30, 2025. The meeting, conducted via video conferencing, included remote e-voting and voting during the AGM. The scrutinizer’s report on the voting results is available on the company’s website. This announcement reflects the company’s adherence to regulatory requirements and transparency in its corporate governance practices.

Zenith Steel Pipes Ensures Compliance with SEBI Regulations

Zenith Steel Pipes & Industries Limited has announced compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter and half-year ending on September 30, 2025. The company confirmed that securities received for dematerialization were processed appropriately, ensuring they are listed on the stock exchange, reflecting a commitment to regulatory standards and operational transparency.

Zenith Steel Pipes Announces Book Closure for AGM

Zenith Steel Pipes & Industries Limited has announced the closure of its Register of Members and Share Transfer Books from September 24 to September 30, 2025, in preparation for its 63rd Annual General Meeting scheduled for September 30, 2025. This announcement is in compliance with Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and is significant for stakeholders as it marks a key administrative step in the company’s annual governance process.