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ZF Steering Gear (India) Limited (505163) Fair Value & Analysis

Other · IN · Market cap ₹2.6B

ZS ZF Steering Gear (India) Limited 505163 · BSE
Price₹674.95
Fair Value₹668.36
Upside-1.0%
Quality58/100
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Expensive Growth
Thin margins · 0.0% net margin
Low debt · negative free cash flow
Ranks above peers (8/10)
Evidence: High Range ₹501.27 – ₹821.32 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 5 days ago

Fair value updated Aug 13, 2026, revised from ₹700.04 to ₹668.36 (−4.5%) since Aug 9, 2026.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ₹501.27 (bear) to ₹821.32 (bull), base ₹668.36. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 58/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

₹1,876 ₹358.17 Fair Value ₹668.36 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹358.17 – ₹1,876 · fair‑value band ₹501.27 – ₹821.32 · the ₹674.95 price screens above the ₹668.36 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

ZF Steering Gear (India) Limited (505163) currently trades at ₹674.95, while our model-based Fair Value estimate is ₹668.36, implying the stock looks roughly 1.0% fairly valued today. The Quality Score stands at 58/100 (solid quality), in the Other sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Net debt stands at ₹959M. The stock trades on a trailing P/E of 10.2 (as of Jul 4, 2026). Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹501.27 (bear case) to ₹821.32 (bull case); at ₹674.95, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 49% below its 52-week high and 18% above its 52-week low. For context, the median of 10 Other peers we cover trades at -24% fair-value upside, at -1%, 505163 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹892.17 ₹852.59 ₹704.28 76
ROIC Compounder ₹275.96 ₹332.05 ₹380.44 72
Gordon GGM ₹1.83 ₹3.64 ₹5.52 70
All 16 models by family
Earnings-Based
Graham-Dodd ₹272.39 ₹940.01 ₹1,262 54
Lynch FV ₹217.31 ₹310.44 ₹403.58 50
PEG = 1.0 ₹217.31 ₹310.44 ₹403.58 46
EPV ₹275.96 ₹332.05 ₹380.44 59
Dividend Discount
Gordon GGM ₹1.83 ₹3.64 ₹5.52 70
DDM Multi-Stage ₹1.83 ₹3.12 ₹3.85 61
Multiples
P/E Multiple ₹510.73 ₹680.98 ₹851.22 63
P/S Multiple ₹510.73 ₹680.98 ₹851.22 58
P/B Multiple ₹510.73 ₹680.98 ₹851.22 55
EV/EBIT ₹675.02 ₹926.45 ₹1,178 53
EV/EBITDA ₹1,383 ₹1,870 ₹2,358 54
EV/Revenue ₹574.44 ₹854.61 ₹1,135 43
Asset-Based
NCAV (Graham) ₹626.42 ₹839.40 ₹1,253 50
Economic Profit
Residual Income ₹892.17 ₹852.59 ₹704.28 76
ROIC Compounder ₹275.96 ₹332.05 ₹380.44 72
Growth Earnings
Growth-Adj P/E ₹450.59 ₹643.70 ₹836.81 68

Widest divergence: Asset-Based (₹839.40) versus Dividend Discount (₹3.12). Highest evidence: Residual Income (76).

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Key figures & financial health

Free cash flow −₹116M FY2026
P/E ratio 10.2 as of Jul 4, 2026
EPS (TTM) ₹27.96
Net debt ₹959M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 55 · Market factors (momentum, volatility) 22

Profitability 39
Margins and returns on capital today
Quality Growth 70
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 62
Balance sheet, leverage, solvency risk
Investment 44
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

ZF Steering Gear (India) Limited produces and assembles steering systems for vehicles, buses, and tractors in India and internationally.

Full company description

ZF Steering Gear (India) Limited produces and assembles steering systems for vehicles, buses, and tractors in India and internationally. The company offers ball and nut integral hydraulic power steering gears for heavy commercial vehicles; integral hydraulic power steering gears for medium and light commercial vehicles; power steering gears for SUV and off road vehicles; cast iron vane pumps; aluminum vane pumps; oil reservoirs; integrated oil tanks; steering columns; drop arms; intermediate shafts; universal joints; and bevel gear boxes. It also offers worm and roller mechanical steering systems for tractor and light commercial vehicles, as well as related accessories; power rack and pinion steering system for passenger cars; mechanical rack and pinion steering system for one toner passenger and goods carriers; double barrel steering gears; and tractor hydraulic power assisted steering gears. The company offers its products and services through a network of dealers and distributors. ZF Steering Gear (India) Limited was incorporated in 1981 and is based in Pune, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

ZF Steering Gear (India) Limited reported revenue of ₹5.7B in FY2026 versus ₹3.1B in FY2022, a compound +16.2%/yr. Reported net income was ₹154M in FY2026, compounding −4.2%/yr from FY2022.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹5.7B
Latest YoY
+15.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.2%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.8%
Revenue +16.2%/yr
FY22 ₹3.1B
FY23 ₹4.5B
FY24 ₹4.8B
FY25 ₹4.9B
FY26 ₹5.7B
Net income −4.2%/yr
FY22 ₹183M
FY23 ₹245M
FY24 ₹437M
FY25 ₹149M
FY26 ₹154M

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Cite: Fair Value Calculator (2026). "ZF Steering Gear (India) Limited Fair Value". https://www.fairvalue-calculator.com/stock/505163

Peer Group

Other · 373 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 58 · Above median
Fair Value upside −1% · Above median
Return on assets 0% · Top 25%
Net margin (TTM) 0% · Above median
Operating margin (TTM) 0% · Above median
Revenue growth 0% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.07× · Higher than median

Valuation Multiples vs Other median · lower = cheaper

P/E (TTM) 10.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 32 · sector 9
FUTURE 0 · sector 0
PAST 0 · sector 0
HEALTH 96 · sector 97
DIVIDEND 1 · sector 31

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Other stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Nestl?? India Limited 500790 ₹1,497 ₹191.93 -87%
ITC Limited 500875 ₹279.50 ₹212.74 -24%
Wipro Limited 507685 ₹183.80 ₹193.38 +5%
540376 540376 ₹4,054 ₹1,542 -62%
540777 540777 ₹537.50 ₹149.72 -72%
Lupin Limited 500257 ₹2,265 ₹1,983 -12%
Dabur India Limited 500096 ₹413.80 ₹122.93 -70%
540719 540719 ₹1,835 ₹872.41 -52%

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Frequently asked questions

Is ZF Steering Gear (India) Limited (505163) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹668.36 versus a price of ₹674.95, about −1% (fairly valued).
What is the fair value of 505163?
Our model-based fair value for ZF Steering Gear (India) Limited is ₹668.36 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹674.95.
What is the quality score of 505163?
ZF Steering Gear (India) Limited has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of 505163?
The net profit margin of ZF Steering Gear (India) Limited is about 0.0%, meaning it keeps roughly 0.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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