Zenith Steel Pipes & Industries Intrinsic Value

ZENITHSTL • Industrial Products
Current Stock Price
₹7.19
Primary Intrinsic Value
₹2.40
Market Cap
₹102.1 Cr
-55.6% Downside
Median Value
₹3.19
Value Range
₹2 - ₹5
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

ZENITHSTL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹2.40 ₹1.92 - ₹2.88 -66.6% EPS: ₹0.20, Sector P/E: 12x
Revenue Multiple Method revenue ₹4.73 ₹4.26 - ₹5.20 -34.2% Revenue/Share: ₹5.92, P/S: 0.8x
EBITDA Multiple Method earnings ₹3.19 ₹2.87 - ₹3.51 -55.6% EBITDA: ₹8.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹3.27 ₹2.62 - ₹3.92 -54.5% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹2.16 ₹1.94 - ₹2.38 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹2.16 ₹1.94 - ₹2.38 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

ZENITHSTL Intrinsic Value Analysis

What is the intrinsic value of ZENITHSTL?

Based on our comprehensive analysis using 6 different valuation methods, the estimated intrinsic value of Zenith Steel Pipes & Industries (ZENITHSTL) is ₹3.19 (median value). With the current market price of ₹7.19, this represents a -55.6% variance from our estimated fair value.

The valuation range spans from ₹2.16 to ₹4.73, indicating ₹2.16 - ₹4.73.

Is ZENITHSTL undervalued or overvalued?

Based on our multi-method analysis, Zenith Steel Pipes & Industries (ZENITHSTL) appears to be trading above calculated value by approximately 55.6%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 2.67 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio -0.62 Industry Standard: <0.5 Below 0.5 Indicates financial leverage level
Return on Equity -1.6% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin -39.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.53x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2024 ₹5 Cr ₹4 Cr Positive Free Cash Flow 8/10
March 2023 ₹18 Cr ₹17 Cr Positive Free Cash Flow 8/10
March 2022 ₹-1 Cr ₹-1 Cr Negative Cash Flow 3/10
March 2021 ₹16 Cr ₹16 Cr Positive Free Cash Flow 8/10
March 2020 ₹25 Cr ₹25 Cr Positive Free Cash Flow 8/10