🧠 At a Glance
ZF Commercial Vehicle Control Systems India Ltd (formerly WABCO India) has quietly built an empire of brakes, compressors, and vehicle control systems. With ROCE nearing 20%, a 27% profit CAGR over 5 years, and zero long-term debt — this isnotyour average auto stock. But at 54x earnings, is the rally already over the speed limit?
🔍 Part 1: The Braking System Empire You’ve Probably Ignored
- ZF WABCO isIndia’s #1 playerin truck, bus, and trailer braking systems.
- The company manufactures:
- Air disc brakes
- Compressors, vacuum pumps
- Door control + suspension systems
- Electronic stability control + digital services
- Their B2B clients include:
- Ashok Leyland, Tata Motors, Volvo-Eicher, Daimler, and BharatBenz
- It also providesaftermarket servicing,
- digital fleet management, and training to OEMs and fleet operators.
📦 In short: If your intercity busstopped in time, thank ZF.
📊 Part 2: 5-Year Financial Recap – Margins, Profits & Precision Engineering
| ₹ in Cr | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 1,864 | 2,543 | 3,445 | 3,784 | 3,804 |
| EBITDA | 206 | 253 | 470 | 563 | 625 |
| EBITDA % | 11.0% | 10.0% | 14.0% | 15.0% | 16.0% |
| PAT | 104 | 142 | 318 | 405 | 459 |
| EPS | ₹54.7 | ₹74.9 | ₹167.5 | ₹213.4 | ₹241.8 |
| ROCE | 7% | 9% | 19% | 21% | 20% |
| Dividend Payout | 20% | 16% | 8% | 8% | 8% |
✅Takeaway: Profits are up4.4xsince FY21, while margins have moved from mediocre to magnificent.
🧮 Part 3: Quarterly Trends – Engine Revving or Hitting the Redline?
| Quarter | Sales (₹ Cr) | OPM (%) | Net Profit (₹ Cr) | EPS |
|---|---|---|---|---|
| Mar 2023 | 977 | 15% | 101 | ₹53.3 |
| Jun 2023 | 961 | 15% | 100 | ₹52.6 |
| Sep 2023 | 981 | 15% | 104 | ₹55.0 |
| Dec 2023 | 887 | 15% | 100 | ₹52.5 |
| Mar 2024 | 956 | 15% | 101 | ₹53.3 |
| Jun 2024 | 938 | 15% | 99 | ₹52.3 |
| Sep 2024 | 907 | 15% | 109 | ₹57.6 |
| Dec 2024 | 956 | 18% | 125 | ₹65.9 |
| Mar 2025 | 1,003 | 17% | 125 | ₹66.0 |
📈 Last 3 quarters
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