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Zenith Steel Pipes & Industries Limited (ZENITHSTL) Fair Value & Analysis

Basic Materials · IN · Market cap ₹807M

ZS Zenith Steel Pipes & Industries Limited ZENITHSTL · NSE
Price₹5.48
Fair Value₹4.45
Upside-18.7%
Quality29/100
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Weak Growth
Thin margins · 8.2% net margin
Negative equity (buybacks among others) · negative free cash flow
Trails peers (3/10)
Narrow moat 16/100
Evidence: Low Range ₹3.34 – ₹5.57 Share as image

Fair value as of: Aug 13, 2026

From 7 valuation models · updated 4 days ago

Share price −0.5% over the past month.

Below-average quality, and screening another 19% overvalued on our models.

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What matters now

  • Weak quality (29/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
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Price vs Fair Value (5 years)

₹14.72 ₹0.3500 Fair Value ₹4.45 May 2020 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 ₹0.3500 – ₹14.72 · fair‑value band ₹3.34 – ₹5.57 · the ₹5.48 price screens above the ₹4.45 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Zenith Steel Pipes & Industries Limited (ZENITHSTL) currently trades at ₹5.48, while our model-based Fair Value estimate is ₹4.45, implying the stock looks roughly 18.7% overvalued today. The Quality Score stands at 29/100 (below-average quality), in the Basic Materials 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: low).

Over the trailing twelve months, Zenith Steel Pipes & Industries Limited generated revenue of ₹534M at a net margin of 8.2%. Revenue declined 54.5% year over year. Net debt stands at ₹2.2B. The stock trades on a trailing P/E of 17.7. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹3.34 (bear case) to ₹5.57 (bull case); at ₹5.48, 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 47% below its 52-week high and 24% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -22% fair-value upside, at -19%, ZENITHSTL 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
Gordon GGM ₹11.81 ₹12.73 ₹14.10 70
Growth-Adj P/E ₹2.80 ₹4.00 ₹5.20 68
P/E Multiple ₹3.93 ₹5.24 ₹6.55 63
All 7 models by family
DCF Models
Owner Earnings ₹0.9400 ₹2.00 ₹3.76 31
Earnings-Based
Graham-Dodd ₹2.09 ₹2.56 ₹2.88 54
Dividend Discount
Gordon GGM ₹11.81 ₹12.73 ₹14.10 70
DDM Multi-Stage ₹11.81 ₹14.05 ₹16.95 61
Multiples
P/E Multiple ₹3.93 ₹5.24 ₹6.55 63
P/S Multiple ₹3.93 ₹5.24 ₹6.55 58
Growth Earnings
Growth-Adj P/E ₹2.80 ₹4.00 ₹5.20 68

Widest divergence: Dividend Discount (₹12.73) versus DCF Models (₹2.00). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) ₹534M
Revenue growth (YoY) -54.5%
Net margin 8.2%
Free cash flow −₹12.7M FY2026
P/E ratio 17.7
Operating margin -1.7%
More key figures
EPS (TTM) ₹0.3100
EPS growth (YoY) -49.0%
Net debt ₹2.2B FY2026

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

Quality Score breakdown

Overall quality 29/100

Of which business quality 27 · Market factors (momentum, volatility) 35

Profitability 28
Margins and returns on capital today
Quality Growth 15
Are margins and returns improving?
Cashflow 9
Earnings quality: real cash, not paper profit
Fin. Strength 2
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 43
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

Zenith Steel Pipes & Industries Limited, together with its subsidiaries, manufactures and sells steel pipes in India and internationally. It offers electric resistance welded black and galvanized pipes; and helical submerged arc welded pipes.

Full company description

Zenith Steel Pipes & Industries Limited, together with its subsidiaries, manufactures and sells steel pipes in India and internationally. It offers electric resistance welded black and galvanized pipes; and helical submerged arc welded pipes. The company's products are used for various applications, such as agriculture and irrigation water distribution, sprinklers, drill rods, bore-well, construction water distribution, space frames, fences, firefighting and chilled water systems, structural scaffolding and props, green house, industrial general engineering, container making, distribution of gas and crude, transportation of raw and potable water, poles, transmission tower, transportation of oil and gas, transportation of sewage disposal irrigation, piling, ash/slurry transportation, and electricity conduits, as well as the auto industry. It also exports its products to approximately 79 countries, including the United States. The company was formerly known as Zenith Birla (India) Limited and changed its name to Zenith Steel Pipes & Industries Limited in July 2020. The company was incorporated in 1960 and is based in Mumbai, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Zenith Steel Pipes & Industries Limited reported revenue of ₹534M in FY2026 versus ₹1.5B in FY2022, a compound −22.8%/yr. Reported net income was ₹43.8M in FY2026, compounding −21.6%/yr from FY2022.

Growth Quality 17/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹534M
Latest YoY
−55.2%
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.
−28.8%
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.
−0.9%
Avg. growth/yr (21Y) 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.
−8.8%
Revenue −22.8%/yr
FY22 ₹1.5B
FY23 ₹1.5B
FY24 ₹1.4B
FY25 ₹1.2B
FY26 ₹534M
Net income −21.6%/yr
FY22 ₹116M
FY23 −₹144M
FY24 −₹7.0M
FY25 ₹2.3M
FY26 ₹43.8M

ZENITHSTL screens 19% overvalued. Compare with JSW Steel Limited →

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Cite: Fair Value Calculator (2026). "Zenith Steel Pipes & Industries Limited Fair Value". https://www.fairvalue-calculator.com/stock/ZENITHSTL

Peer Group

Steel · 380 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 29 · Bottom 25%
Fair Value upside −19% · Below median
Return on assets -7% · Bottom 25%
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) -2% · Bottom 25%
Revenue growth -55% · Bottom 25%

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 17.7× · Cheaper than median
P/S (TTM) 1.51× · Pricier than 75% of peers

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 8 · sector 16
FUTURE 0 · sector 4
PAST 0 · sector 16
HEALTH 100 · sector 95
DIVIDEND 0 · sector 55

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

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

Stock Price Fair Value vs Fair Value
JSW Steel Limited JSWSTEEL ₹1,269 ₹1,140 -10%
Tata Steel Limited TATASTEEL ₹186.20 ₹145.39 -22%
China Steel Corporation 2002A 37.25 TWD 8.74 TWD -77%
POSCO Holdings 005490 325,000 KRW 155,270 KRW -52%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,838 ARS +16%
Jindal Steel Limited JINDALSTEL ₹1,112 ₹516.27 -54%
Lloyds Metals and Energy Limited LLOYDSME ₹1,894 ₹771.10 -59%
Gerdau S.A GGBN 83.50 MXN 39.22 MXN -53%
Ternium S.A TXR 17,780 ARS 27,472 ARS +55%
NMDC Limited NMDC ₹85.00 ₹112.98 +33%

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Frequently asked questions

Is Zenith Steel Pipes & Industries Limited (ZENITHSTL) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹4.45 versus a price of ₹5.48, about −19% (overvalued).
What is the fair value of ZENITHSTL?
Our model-based fair value for Zenith Steel Pipes & Industries Limited is ₹4.45 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹5.48.
What is the quality score of ZENITHSTL?
Zenith Steel Pipes & Industries Limited has a Quality Score of 29/100. 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 revenue of Zenith Steel Pipes & Industries Limited (ZENITHSTL)?
Zenith Steel Pipes & Industries Limited reported trailing-twelve-month revenue of about ₹534M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of ZENITHSTL?
The net profit margin of Zenith Steel Pipes & Industries Limited is about 8.2%, meaning it keeps roughly 8.2% 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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