Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

ZF Steering Gear (India) Limited (ZFSTEERING.BO)

Company Dividend Discount ModelIndustry: Auto - PartsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$246.47 - $598.43$366.45
Multi-Stage$175.29 - $191.36$183.18
Blended Fair Value$274.81
Current Price$1,016.95
Upside-72.98%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS170.42%-0.23%7.755.090.000.090.090.059.409.360.0326.22
YoY Growth--52.21%0.00%-100.00%0.00%60.00%-99.43%0.44%34,828.00%-99.90%230.94%
Dividend Yield--0.66%0.44%0.00%0.02%0.02%0.02%1.87%0.89%0.00%1.71%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)105.90
(-) Cash Dividends Paid (M)35.80
(=) Cash Retained (M)70.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)21.1813.247.94
Cash Retained (M)70.1070.1070.10
(-) Cash Required (M)-21.18-13.24-7.94
(=) Excess Retained (M)48.9256.8662.16
(/) Shares Outstanding (M)9.339.339.33
(=) Excess Retained per Share5.246.096.66
LTM Dividend per Share3.843.843.84
(+) Excess Retained per Share5.246.096.66
(=) Adjusted Dividend9.089.9310.50
WACC / Discount Rate9.39%9.39%9.39%
Growth Rate5.50%6.50%7.50%
Fair Value$246.47$366.45$598.43
Upside / Downside-75.76%-63.97%-41.15%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)105.90112.78120.11127.92136.24145.09149.44
Payout Ratio33.81%45.04%56.28%67.52%78.76%90.00%92.50%
Projected Dividends (M)35.8050.8067.6086.38107.30130.58138.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.39%9.39%9.39%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)46.0146.4446.88
Year 2 PV (M)55.4456.5057.57
Year 3 PV (M)64.1566.0067.87
Year 4 PV (M)72.1774.9577.80
Year 5 PV (M)79.5483.3987.37
PV of Terminal Value (M)1,318.741,382.441,448.57
Equity Value (M)1,636.061,709.711,786.07
Shares Outstanding (M)9.339.339.33
Fair Value$175.29$183.18$191.36
Upside / Downside-82.76%-81.99%-81.18%

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