🟢 At a glance
Z-Tech (India) Ltd (NSE: ZETCH) just dropped a financial banger. Revenue shot up 40% YoY to ₹94.8 crore, and PAT more than doubled to ₹20.18 crore. From geotechnical wizardry to theme park development (yes, you read that right), this company isn’t just boring old infra anymore. And with ₹100 crore sitting pretty in the securities premium account thanks to IPO + preferential issue proceeds, this microcap is suddenly swimming in cash.
🏢 About Z-Tech (India) Ltd
Formerly: Z-Tech (India) Private Ltd
CIN: U74899DL1994PLC062582
Registered Office: Delhi, Projects across India
Z-Tech operates in three highly specialized but wildly different verticals:
- Geo-technical Specialised Solutions (Think: soil investigations, pile foundations)
- Industrial Waste Water Management
- Sustainable Theme Park Development (You can’t make this up.)
And yes, they just proposed setting up a wholly-owned subsidiary in Dubai.
👥 Key Managerial Update
- New CFO Appointed: Mr. Dilip Kohli (ex-Geodis, Kuehne-Nagel, veteran of 30+ years) took charge on 29 May 2025.
- Outgoing CFO: Mr. Anjani Goyal stepped down but continues in the finance team.
📊 Financial Highlights (FY25 vs FY24)
| Particulars | FY25 (₹ Cr) | FY24 (₹ Cr) | Growth |
|---|---|---|---|
| Revenue from Operations | 94.4 | 67.3 | 🔼 +40% |
| EBITDA (approx) | 27.46 | 11.06 | 🔼 +148% |
| PAT | 20.18 | 8.46 | 🔼 +138% |
| EPS (Diluted) | ₹16.52 | ₹9.36 | 🔼 +76.5% |
| Cash & Cash Equivalents | ₹3.8 Cr | ₹0.83 Cr | 💰 Up 4.5x |
| Net Worth | ₹174.56 Cr | ₹21.83 Cr | 💥 8x growth |
🧾 Securities Premium Account Balance: ₹100.52 crore remains unutilized.
💸 Cash Flow from Ops: -₹91.36 crore due to massive working capital stretch. But offset by ₹129.14 crore from financing.
🧱 Segment Performance (FY25)
| Segment | Revenue (₹ Cr) | Segment PBT (₹ Cr) |
|---|---|---|
| Geo-Technical Solutions | 16.1 | 2.95 |
| Waste Water Management | 4.92 | 1.07 |
| Theme Park Development | 73.67 | 27.20 |
🎡 Theme Parks now contribute 78% of total revenue – they’re literally carrying the company on a ferris wheel.
🏗️ IPO and Fund Usage
- IPO Proceeds: ₹37.3 crore
- Preferential Allotment: ₹76.65 crore
- Share Warrants (Advance received): ₹23.30 crore
- Utilised: 100% of IPO funds (₹23.75 Cr to working capital, ₹7.5 Cr for GCP, ₹6 Cr IPO expenses)
- Unutilized premium: Sits idle like a rich cousin after family inheritance — ₹100.52 Cr untouched.
🔍 EduInvesting Take
- The Theme Park twist: Who would’ve thought a company known for digging soil would ride its profit train on sustainable entertainment parks? Wild diversification or strategic genius? Jury’s out.
- Debt-light + Cash-rich = Rare Combo: With just ₹1.5 Cr long-term borrowings and ₹100 Cr in securities premium, this company is financially weaponized to scale.
- Dubai dreams incoming: A new WOS (Wholly Owned Subsidiary) in the UAE could be the start of Z-Tech’s international innings. Hope it’s not just for business class meetings.
- Insider Confidence: Preferential allotment + share warrants to insiders at a premium = bullish vibes.
- BUT, Working Capital Hell: Trade receivables jumped to ₹48.86 Cr (from ₹28.5 Cr). Short-term liquidity is being squeezed like toothpaste.
🚩 Risks & Red Flags
- ⚠️ Negative Cash Flow from Operations: -₹91.36 Cr in FY25 due to working capital build-up.
- ⚠️ Receivables Ballooning: 2x jump hints at delayed payments or stretched clients.
- ⚠️ High segmental dependence on theme park biz: 3/4th of revenue is from one vertical – risk of slowdown or cancellation.
🎯 Forward Value Estimation
Let’s be conservative and say Z-Tech achieves ₹25 Cr PAT next year (up just 25%)
Assigning a modest 20x P/E = ₹500 Cr market cap potential
At CMP ₹584.15 → Market Cap ~₹836 Cr
➡️ Forward P/E = 33.4x
➡️ Looks fully valued… unless they unlock Dubai or new theme park orders.
🏁 Final Verdict: Z-Tech is Now Z-Thicc
A year ago, this was a modest infra firm. Today? It’s got profits from rides, ₹100 Cr unspent cash, a CFO who looks like he runs an IPO desk, and a passport stamped for Dubai.
If they fix the receivables mess, ZETCH might just become India’s first microcap to IPO in Dubai and build a roller coaster around it.
Author: Prashant Marathe
Date: 30 May 2025
Tags: Z-Tech, NSE ZETCH, Theme Park Stocks, Infra Microcaps, Dubai Expansion, Preferential Issue, FY25 Results, EduInvesting
