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

• Market Cap: ₹296.18B
• Dividend Yield: 0.12%
• Average Volume (3M): 367.00
• Price to Earnings (P/E): 61.3
• 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: 68 Neutral
• Price Target: ₹16,151.00 ▲(3.43% Upside)

The overall stock score of 68 reflects strong financial performance and positive technical trends, tempered by high valuation concerns. The company's robust revenue growth and financial stability are significant strengths, but the high P/E ratio and overbought technical indicators suggest caution. The absence of earnings call data and notable corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

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

Profitability Margins

Improved profitability margins reflect operational efficiency and cost management, enhancing the company's ability to reinvest in growth opportunities.

Balance Sheet Health

A strong balance sheet with minimal leverage provides financial flexibility and reduces risk, supporting long-term strategic initiatives.

Negative Factors

Cash Flow Volatility

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

EBITDA Growth Dip

A dip in EBITDA growth may signal challenges in maintaining operational efficiency, potentially affecting profitability and competitive positioning.

Cash Flow Management

While cash flow has improved, ongoing volatility could hinder the company's ability to sustain investments and manage financial obligations effectively.

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

Company Description

ZF Commercial Vehicle Control Systems India Limited (ZFCVINDIA) is a leading player in the automotive technology sector, specializing in advanced control systems for commercial vehicles. As a subsidiary of ZF Friedrichshafen AG, ZFCVINDIA focuses on developing innovative products and solutions that enhance the safety, efficiency, and performance of commercial vehicles. The company operates in various sectors, including automotive electronics, powertrain technology, and autonomous driving systems, catering to a diverse clientele ranging from OEMs to aftermarket suppliers.

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: 15614.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 15614.9 is above the 20-day moving average (MA) of 14282.72, above the 50-day MA of 13448.31, and above the 200-day MA of 13166.37, indicating a bullish trend. The MACD of 503.52 indicates Negative momentum. The RSI at 70.89 is Negative, neither overbought nor oversold. The STOCH value of 78.92 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
ZFCVINDIA	68 Neutral	₹296.18B	61.34	―	0.12%	4.02%	17.88%
TIMKEN	66 Neutral	₹228.22B	50.18	―	1.18%	4.81%	15.08%
SUNDRMFAST	66 Neutral	₹197.75B	35.69	―	0.84%	3.59%	1.37%
ELECON	64 Neutral	₹108.23B	20.93	―	0.41%	20.94%	45.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹86.42B	16.11	―	0.40%	6.65%	-4.29%
CRAFTSMAN	59 Neutral	₹167.96B	69.94	―	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.