Hold ZF Commercial Vehicle Control Systems; target of Rs 12,810: ICICI Securities

Hold

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

ICICI Securities research report on ZF Commercial Vehicle Control Systems

ZFCVCS (ZFI) has delivered a 10-quarter high gross margin, driven by improving mix and lagged price hikes, resulting in flat EBITDAM QoQ. ZFI’s revenue from domestic OEMs was up ~20% YoY, driven by new business generation from electronic stability control system sales to buses, electronic braking system applications, electronic compressors and driver assistance systems. Going ahead, ZFI is planning to ramp-up EBITDAM, led by improving mix of new complex products at the cost of lower margin commoditised products, improving productivity and tighter control on pricing. We are building in ~24% revenue CAGR for FY23-25E with mean EBITDAM of ~15.5%.

Outlook

We downgrade ZFI to HOLD from Add post 40% return in the past 6 months with a revised DCF-based target price of INR 12,810 (earlier INR 11,433), implying 40x FY25E earnings.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

ZF Commercial Vehicle Control Systems - 01 -08 - 2023 - isc