₹1713.0
-0.42% today
· 30d +11.96%
as of 2026-11-09
Price · Daily Candles
“Zentec faces growth headwinds: strong historical CAGR belied by recent Q4 decline.”
Zentec reports a staggering 5-year Net Profit CAGR of 139.36% but quarterly revenues and net profits declined by 45.2% and 58.47% YoY respectively in Q4 2026. Despite a 'HIGH' profitability score of 85, its overall business score is 'NEUTRAL' (50), with 'DECLINING' growth and 'STRETCHED' valuation.
BULL CASE
+Zentec exhibits impressive long-term growth, with a 5-year Net Profit CAGR of 139.36% and a 3-year Revenue CAGR of 44.46%.
+Profitability remains strong with an annual profit margin of 31.51% and a Q4 2026 OPM of 36.7%.
+Its Beta of 0.87 suggests lower volatility compared to the broader market.
+FIIs increased their stake by 0.44% QoQ to 5.99%, and DIIs by 2.21% QoQ to 10.07% in Q4 2026.
BEAR CASE
−The company's Q4 2026 performance saw a significant revenue decline of 45.2% YoY and a net profit decline of 58.47% YoY.
−Annual revenue for 2026 also fell by 29.37% YoY, and net profit by 27.2% YoY, indicating a challenging period.
−The stock is trading at a high TTM PE of 74.38 and an 8.02x PB multiple, potentially indicating an 'STRETCHED' valuation.
−The ML predictions for Free Cash Flow (FCF) paint a 'weak' picture, with ranks of 0.235 (recent 2y) and 0.012 (rolling 4y).
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹345 Cr
+98.84% YoY
NET PROFIT
₹102 Cr
+64.58% YoY
OPM
41.1%
-4.18pp YoY
EPS
₹9.97
PE 74.38
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-1.4%, h2=+0.9%, h3=-1.4% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
Zentec's PE of 74.38 and ROCE of 16.0% position it as more expensively valued than peers like HAL (PE 35.4, ROCE 19.67%) but below BDL's PE of 88.69 with a lower ROCE of 11.16%.
PEERPEROCE %
ZENTEC74.3816.0
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ML Forward Growth Predictions 🔒
62
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
STRONG
90
Valuation
STRETCHED
20
Growth
DECLINING
25
Profitability
HIGH
90
Technicals
NEUTRAL
65
Risk
LOW
80
Key Stats
TTM PE
74.38
P/B
8.02
52W HIGH
₹2043.7
OFF HIGH
-16.18%
DIV YIELD
0.12%
MKT CAP
₹15407 Cr
◉ Active Signals
MACDBullish17.4899
RSI(14)Neutral56.87
Street Consensus
6 analysts₹1726.67
mean target
Low ₹1400.0Now ₹1713.0High ₹1900.0
⧉ Strategy Fit 🔒