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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 533339 | NSE: ZENTEC

Zen Technologies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 14, 2024, 6:27 pm

Market Cap 15,946 Cr.
Current Price 1,767
High / Low1,999/688
Stock P/E78.8
Book Value 173
Dividend Yield0.06 %
ROCE47.3 %
ROE33.1 %
Face Value 1.00
PEG Ratio0.75

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Zen Technologies Ltd

Competitors of Zen Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
DCX Systems Ltd 3,547 Cr. 318452/23567.5 1020.00 %9.27 %8.08 % 2.00
Data Patterns (India) Ltd 12,155 Cr. 2,1723,655/1,75165.6 2410.30 %19.7 %14.3 % 2.00
Paras Defence and Space Technologies Ltd 3,951 Cr. 9811,593/60980.0 1220.00 %11.4 %7.96 % 10.0
Zen Technologies Ltd 15,946 Cr. 1,7671,999/68878.8 1730.06 %47.3 %33.1 % 1.00
Mishra Dhatu Nigam Ltd 6,237 Cr. 333548/31280.1 70.40.42 %9.44 %7.00 % 10.0
Industry Average57,062.18 Cr1,254.5362.69139.330.34%23.06%17.11%4.45

All Competitor Stocks of Zen Technologies Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales161216332133741326498136254242
Expenses1511162216254866425491151162
Operating Profit11-01158266622444510379
OPM %7%8%-1%34%26%25%35%50%34%45%33%41%33%
Other Income1122340354538
Interest0011100000112
Depreciation1111111122222
Profit before tax11112711256724464710383
Tax %11%80%-97%31%30%29%30%30%29%31%30%28%22%
Net Profit10185817471732337465
EPS in Rs0.110.020.181.030.580.952.175.612.063.773.938.837.23

Last Updated: November 6, 2024, 7:30 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales374679536239921475054161430552
Expenses33465848504170834252110253338
Operating Profit5121412-223648251177214
OPM %12%1%27%8%19%-5%24%43%16%4%32%41%39%
Other Income543544323591617
Interest2222325311223
Depreciation2224434444478
Profit before tax602039-317596254184220
Tax %15%18%21%21%20%-86%-13%-3%28%-9%30%30%
Net Profit501627-019614238129156
EPS in Rs0.530.012.040.300.96-0.052.497.840.520.254.7315.3818.59
Dividend Payout %19%858%2%33%16%-198%12%5%19%39%4%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142015-20162016-20172017-20182019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-100.00%-87.50%250.00%-100.00%221.05%-93.44%-50.00%1800.00%239.47%
Change in YoY Net Profit Growth (%)0.00%12.50%337.50%-350.00%321.05%-314.50%43.44%1850.00%-1560.53%

Zen Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:25%
5 Years:36%
3 Years:106%
TTM:140%
Compounded Profit Growth
10 Years:107%
5 Years:46%
3 Years:215%
TTM:130%
Stock Price CAGR
10 Years:43%
5 Years:96%
3 Years:103%
1 Year:140%
Return on Equity
10 Years:15%
5 Years:18%
3 Years:18%
Last Year:33%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital9888888888889
Reserves98911031051121111291872052813094451,556
Borrowings131840419104211126161
Other Liabilities5122714163645181056124264207
Total Liabilities1261281781671441652242132243584467181,832
Fixed Assets29494744456563646259677988
CWIP31015170000321014
Investments00000213162424242626
Other Assets947813010882981471331372723536031,703
Total Assets1261281781671441652242132243584467181,832

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3910043519-446413-449921
Cash from Investing Activity +-3-80-930-127-11-18-43-3-82
Cash from Financing Activity +-21-70-3-8-55-211087-18-6
Net Cash Flow15-5030263-32325078-67

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-8.00-17.00-19.00-37.003.00-12.00-19.0063.007.00-10.0045.00176.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1279027656120212290110128133150143
Inventory Days2122952252422371,18149697396625368355
Days Payable5363475289355106481141473370
Cash Conversion Cycle2863224552462671,038681159410612484429
Working Capital Days2361432811381508029518054883056152
ROCE %6%2%16%3%9%-0%14%33%3%1%17%47%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters60.19%60.19%60.19%60.19%60.19%60.14%57.45%57.45%55.07%55.07%55.07%51.26%
FIIs0.35%0.29%0.32%0.33%0.30%1.29%3.47%4.84%4.65%3.84%3.09%5.72%
DIIs0.00%0.00%0.01%0.11%0.11%0.15%0.21%0.15%3.09%3.31%3.37%8.05%
Public39.46%39.52%39.13%39.03%39.05%37.82%38.11%36.80%36.42%37.15%37.94%34.49%
Others0.00%0.00%0.35%0.35%0.35%0.61%0.76%0.76%0.76%0.62%0.53%0.47%
No. of Shareholders96,2751,14,7051,18,8061,16,6101,22,3391,08,4201,27,2081,59,7661,61,9951,70,4212,01,2112,29,479

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)15.455.390.250.397.62
Diluted EPS (Rs.)15.345.200.250.397.62
Cash EPS (Rs.)16.567.050.930.978.19
Book Value[Excl.RevalReserv]/Share (Rs.)55.4832.1327.0526.4925.63
Book Value[Incl.RevalReserv]/Share (Rs.)55.4832.1327.0526.4925.63
Revenue From Operations / Share (Rs.)52.3427.528.776.8719.35
PBDIT / Share (Rs.)23.2910.041.251.318.38
PBIT / Share (Rs.)22.139.280.640.687.79
PBT / Share (Rs.)22.159.020.410.547.35
Net Profit / Share (Rs.)15.416.280.320.347.60
NP After MI And SOA / Share (Rs.)15.225.380.240.397.62
PBDIT Margin (%)44.4936.4914.2619.0443.30
PBIT Margin (%)42.2933.727.339.9740.24
PBT Margin (%)42.3232.774.737.9838.00
Net Profit Margin (%)29.4422.833.745.0739.28
NP After MI And SOA Margin (%)29.0719.522.845.6939.36
Return on Networth / Equity (%)28.5017.700.951.5230.74
Return on Capital Employeed (%)38.7022.121.722.5529.92
Return On Assets (%)17.039.020.531.3927.45
Long Term Debt / Equity (X)0.010.000.020.010.01
Total Debt / Equity (X)0.010.020.060.010.01
Asset Turnover Ratio (%)0.710.390.180.220.68
Current Ratio (X)2.292.693.8413.358.76
Quick Ratio (X)1.662.343.4911.847.71
Inventory Turnover Ratio (X)1.581.931.000.641.10
Dividend Payout Ratio (NP) (%)0.001.8540.05102.213.93
Dividend Payout Ratio (CP) (%)0.001.6211.6639.443.65
Earning Retention Ratio (%)0.0098.1559.95-2.2196.07
Cash Earning Retention Ratio (%)0.0098.3888.3460.5696.35
Interest Coverage Ratio (X)85.7919.596.509.5319.30
Interest Coverage Ratio (Post Tax) (X)56.7112.772.893.5418.51
Enterprise Value (Cr.)7892.152457.391565.48585.38159.51
EV / Net Operating Revenue (X)17.9411.2322.4410.711.07
EV / EBITDA (X)40.3330.77157.3956.262.47
MarketCap / Net Operating Revenue (X)18.2511.9023.3411.321.18
Retention Ratios (%)0.0098.1459.94-2.2196.06
Price / BV (X)17.8910.797.823.030.91
Price / Net Operating Revenue (X)18.2511.9023.3411.321.18
EarningsYield0.010.010.000.010.33

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Zen Technologies Ltd as of November 15, 2024 is: 4,515.03

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 15, 2024, Zen Technologies Ltd is Undervalued by 155.52% compared to the current share price 1,767.00

Intrinsic Value of Zen Technologies Ltd as of November 15, 2024 is: 9,232.43

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 15, 2024, Zen Technologies Ltd is Undervalued by 422.49% compared to the current share price 1,767.00

Last 5 Year EPS CAGR: 104.48%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (287.08 cr) compared to borrowings (19.62 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (138.62 cr) and profit (44.38 cr) over the years.
  1. The stock has a low average ROCE of 12.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 257.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 362.67, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Zen Technologies Ltd:
    1. Net Profit Margin: 29.44%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 38.7% (Industry Average ROCE: 23.06%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 28.5% (Industry Average ROE: 17.11%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 56.71
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.66
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 78.8 (Industry average Stock P/E: 62.69)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Zen Technologies Ltd. is a Public Limited Listed company incorporated on 29/06/1993 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L72200TG1993PLC015939 and registration number is 015939. Currently Company is involved in the business activities of Manufacture of optical instruments and equipment. Company’s Total Operating Revenue is Rs. 53.71 Cr. and Equity Capital is Rs. 7.95 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aerospace & DefenseB-42, Industrial Estate, Sanathnagar, Hyderabad Telangana 500018info@zentechnologies.com
http://www.zentechnologies.com
Management
NamePosition Held
Mr. Ashok AtluriChairman & Managing Director
Mr. Kishore Dutt AtluriJoint Managing Director
Mr. Ravi Kumar MidathalaWhole Time Director
Ms. Shilpa ChoudariWhole Time Director
Ms. Sirisha ChintapalliIndependent Director
Mr. Sanjay Vijay Singh JesraniIndependent Director
Dr. Ravindra Kumar TyagiIndependent Director
Dr. Ajay Kumar SinghIndependent Director

FAQ

What is the latest intrinsic value of Zen Technologies Ltd?

The latest intrinsic value of Zen Technologies Ltd as on 15 November 2024 is ₹4515.03, which is 155.52% higher than the current market price of ₹1,767.00.

What is the Market Cap of Zen Technologies Ltd?

The Market Cap of Zen Technologies Ltd is 15,946 Cr..

What is the current Stock Price of Zen Technologies Ltd as on 15 November 2024?

The current stock price of Zen Technologies Ltd as on 15 November 2024 is ₹1,767.

What is the High / Low of Zen Technologies Ltd stocks in FY 2024?

In FY 2024, the High / Low of Zen Technologies Ltd stocks is 1,999/688.

What is the Stock P/E of Zen Technologies Ltd?

The Stock P/E of Zen Technologies Ltd is 78.8.

What is the Book Value of Zen Technologies Ltd?

The Book Value of Zen Technologies Ltd is 173.

What is the Dividend Yield of Zen Technologies Ltd?

The Dividend Yield of Zen Technologies Ltd is 0.06 %.

What is the ROCE of Zen Technologies Ltd?

The ROCE of Zen Technologies Ltd is 47.3 %.

What is the ROE of Zen Technologies Ltd?

The ROE of Zen Technologies Ltd is 33.1 %.

What is the Face Value of Zen Technologies Ltd?

The Face Value of Zen Technologies Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Zen Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE