ZF Commercial Vehicle Control Systems India Limited (ZFCVINDIA) AI Stock Analysis

• Market Cap: ₹243.28B
• Dividend Yield: 0.14%
• Average Volume (3M): 367.00
• Price to Earnings (P/E): 50.3
• Beta (1Y): 0.22
• Revenue Growth: 4.02%
• EPS Growth: 17.88%
• Country: IN
• Employees: 2,350
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 56.10
• Shares Outstanding: 18,967,585
• 10 Day Avg. Volume: 237
• 30 Day Avg. Volume: 367
• PEG Ratio: 4.04
• Price to Book (P/B): 7.73
• Price to Sales (P/S): 6.49
• P/FCF Ratio: 207.54
• 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: 65 Neutral
• Price Target: ₹14,124.00 ▲(6.99% Upside)

The overall stock score of 65 reflects strong financial performance, which is the most significant factor, offset by technical indicators suggesting bearish momentum and a high valuation. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and demand for products, supporting long-term business sustainability.

Profitability Margins

Improving profitability margins reflect operational efficiency and pricing power, enhancing long-term financial health.

Balance Sheet Health

A strong balance sheet with minimal leverage ensures financial stability and flexibility to invest in growth opportunities.

Negative Factors

Cash Flow Volatility

Volatile cash flow management can affect the company's ability to fund operations and investments consistently, posing a risk to financial stability.

EBITDA Growth Concerns

A slowdown in EBITDA growth may signal challenges in maintaining operational efficiency, impacting future profitability.

Valuation Concerns

High valuation may limit stock price appreciation potential and attract scrutiny, affecting investor sentiment in the long term.

ZF Commercial Vehicle Control Systems India Limited Business Overview & Revenue Model

Company Description

ZF Commercial Vehicle Control Systems India Limited designs, develops, manufactures, and sells automotive products in India and internationally. The company offers active and passive safety systems, steering systems, clutch systems, axle systems, and chassis and suspension components for commercial vehicles; steering systems, transmissions, axles, and chassis systems for trucks and off-highway applications; gearboxes for the wind turbine industry; and powertrain products, chassis components, and safety devices for light vehicle industry. It also provides products for various applications, including rail, aerospace, marine, and armoured vehicles; and a range of spare parts under the ACHS, LEMFÖRDER, TRW, and WABCO brands. In addition, the company focuses on the fields of electric mobility, autonomous driving, vehicle motion control, electronics, embedded software, and mechanical engineering. ZF Commercial Vehicle Control Systems India Limited was formerly known as WABCO India Limited and changed its name to ZF Commercial Vehicle Control Systems India Limited in March 2022. The company was founded in 1962 and is headquartered in Chennai, India. ZF Commercial Vehicle Control Systems India Limited is a subsidiary of WABCO Asia Private Limited.

How the Company Makes Money

ZF Commercial Vehicle Control Systems India Limited generates revenue primarily through the sale of its high-tech control systems and components to manufacturers of commercial vehicles. Key revenue streams include direct sales of control units, software licensing, and aftermarket services. The company benefits from strategic partnerships with leading automotive manufacturers, which secure long-term contracts and collaborative development projects. Additionally, ZFCVINDIA capitalizes on the growing demand for electric and autonomous vehicle technologies, positioning itself as a key supplier in these emerging markets, thereby enhancing its earning potential.

ZF Commercial Vehicle Control Systems India Limited Financial Statement Overview

Summary

ZF Commercial Vehicle Control Systems India Limited exhibits strong financial health with robust revenue growth, strong profitability margins, and minimal leverage. The balance sheet is solid with low debt and high equity ratio, while cash flow management shows improvement despite some volatility.

Income Statement

ZF Commercial Vehicle has demonstrated robust revenue growth over the years, with a 51.9% increase from 2021 to 2025. The company maintains strong profitability metrics, including a consistent rise in gross profit margin from 37.4% in 2021 to 42.0% in 2025, and a net profit margin that increased from 5.6% to 12.0% in the same period. The EBIT margin improved as well, showcasing operational efficiency. However, there is a slight dip in EBITDA growth in 2025, which needs monitoring.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.02 in 2025, highlighting minimal leverage and financial stability. Return on equity (ROE) increased from 5.2% in 2021 to 14.3% in 2025, indicating efficient use of equity capital. The equity ratio remains robust at 84.9%, reflecting solid asset management. These factors suggest a well-capitalized company with minimal financial risk.

Cash Flow

The company shows positive free cash flow growth, with a significant turnaround from a negative free cash flow in 2022 to positive in 2025. The operating cash flow to net income ratio is healthy, reflecting strong cash generation capabilities. However, fluctuations in free cash flow to net income ratios over the years indicate potential volatility in cash flow management, requiring closer attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	38.35B	38.31B	37.84B	34.16B	25.22B	18.40B
Gross Profit	16.08B	16.08B	12.90B	10.78B	7.74B	6.88B
EBITDA	7.45B	7.39B	6.61B	5.37B	2.90B	2.45B
Net Income	4.84B	4.61B	4.06B	3.18B	1.42B	1.04B
Balance Sheet
Total Assets	0.00	37.85B	33.82B	30.22B	26.37B	24.96B
Cash, Cash Equivalents and Short-Term Investments	14.96B	14.96B	13.20B	12.65B	10.62B	10.97B
Total Debt	0.00	660.83M	684.36M	653.45M	38.86M	95.70M
Total Liabilities	-32.15B	5.71B	5.91B	6.13B	5.23B	5.00B
Stockholders Equity	32.15B	32.15B	27.90B	24.09B	21.14B	19.96B
Cash Flow
Free Cash Flow	0.00	1.20B	-54.62M	1.71B	-382.34M	683.43M
Operating Cash Flow	0.00	2.86B	1.93B	2.98B	1.38B	1.38B
Investing Cash Flow	0.00	-2.28B	-1.31B	-2.71B	-1.77B	-237.98M
Financing Cash Flow	0.00	-441.14M	-341.16M	-310.70M	-284.50M	-185.72M

ZF Commercial Vehicle Control Systems India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13201.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZFCVINDIA, the sentiment is Positive. The current price of 13201.45 is above the 20-day moving average (MA) of 12816.57, above the 50-day MA of 12982.22, and above the 200-day MA of 12884.62, indicating a bullish trend. The MACD of 16.96 indicates Negative momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 60.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ZFCVINDIA.

ZF Commercial Vehicle Control Systems India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMKEN	66 Neutral	₹229.57B	50.47	―	1.14%	4.81%	15.08%
SUNDRMFAST	66 Neutral	₹202.35B	36.53	―	0.85%	3.59%	1.37%
ZFCVINDIA	65 Neutral	₹243.28B	50.30	―	0.14%	4.02%	17.88%
ELECON	64 Neutral	₹126.74B	24.51	―	0.40%	20.94%	45.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹104.75B	19.95	―	0.36%	6.65%	-4.29%
CRAFTSMAN	59 Neutral	₹162.91B	77.21	―	0.07%	54.58%	-12.30%

ZF Commercial Vehicle Control Systems India Limited Corporate Events

ZF Commercial Vehicle Control Systems India Limited Submits SEBI Compliance Certificate

ZF Commercial Vehicle Control Systems India Limited has submitted a confirmation certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ending September 30, 2025. This submission is part of the company’s compliance with regulatory requirements, reflecting its commitment to maintaining transparency and adherence to industry standards.

ZF Commercial Vehicle Control Systems India Limited Engages with Analysts and Investors

ZF Commercial Vehicle Control Systems India Limited held a virtual meeting with analysts and institutional investors, hosted by Kotak Securities Limited, on September 3, 2025. The meeting provided an operational overview of the company, ensuring no unpublished price-sensitive information was disclosed, reflecting transparency and compliance with regulatory requirements.

ZF Commercial Vehicle Control Systems India Engages in Investor Meetings

ZF Commercial Vehicle Control Systems India Limited announced the outcome of recent investor meetings, where Chief Financial Officer Ms. Sweta Agarwal engaged with representatives from Motilal Oswal Mutual Fund and Nippon India Mutual Fund. These meetings, conducted both in-person and virtually, focused on providing an operational overview of the company without discussing any unpublished price-sensitive information, reflecting the company’s commitment to transparency and regulatory compliance.

ZF India Reports on Physical Share Transfer Requests

ZF Commercial Vehicle Control Systems India Limited has announced the re-lodgment of transfer requests for physical shares, as per the SEBI circular dated July 2, 2025. The company reported no requests received or processed for the month of July 2025, indicating a potential impact on shareholder transactions and administrative processes.

ZF Commercial Vehicle Control Systems India Limited Releases Q2 2025 Financial Results

ZF Commercial Vehicle Control Systems India Limited announced the approval of its unaudited financial results for the quarter ended June 30, 2025. The results, reviewed by the Audit Committee and approved by the Board of Directors, were disclosed in compliance with SEBI regulations. This announcement reflects the company’s commitment to transparency and regulatory adherence, potentially impacting its market positioning and stakeholder confidence.

ZF Commercial Vehicle Control Systems India Schedules Q1 Earnings Call

ZF Commercial Vehicle Control Systems India Limited has announced a scheduled conference call to discuss its financial performance for the first quarter ending June 30, 2025. The call, organized by Batlivala & Karani Securities India Private Limited, will take place on August 14, 2025, and will involve discussions with fund managers, analysts, and investors. This initiative reflects the company’s commitment to transparency and engagement with its stakeholders, potentially impacting its market perception and investor relations.

ZF Commercial Vehicle Control Systems India Releases 2024-25 Sustainability Report

ZF Commercial Vehicle Control Systems India Limited has released its Business Responsibility and Sustainability Report for the financial year 2024-25, as part of its Integrated Annual Report. This report, in compliance with the Securities and Exchange Board of India regulations, highlights the company’s commitment to sustainable business practices and transparency in its operations, which may enhance its industry positioning and stakeholder trust.