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Z-Tech (India) Overview

1. Business Overview

Z-Tech (India) Ltd. is an Indian company operating in the Engineering - Construction sector. Its core business involves undertaking various construction and engineering projects. This typically includes civil construction, infrastructure development (e.g., roads, bridges, water supply projects), industrial construction, and potentially commercial or residential building projects. The company's business model is project-based, relying on securing contracts through tenders or direct negotiations, executing these projects, and delivering them within specified timelines and budgets. Z-Tech primarily makes money through fees charged for its engineering and construction services, with revenues derived from the successful completion and billing of these projects.

2. Key Segments / Revenue Mix

Specific breakdown of Z-Tech's key segments and their revenue contribution is not available from the provided information. However, typical segments for an Engineering - Construction company in India might include:

Infrastructure Projects (roads, bridges, railways, urban infrastructure)

Industrial Construction (factories, power plants, specialized facilities)

Buildings (commercial, residential, institutional)

Water & Environmental Projects

Without detailed financial reports, the precise revenue mix remains undisclosed.

3. Industry & Positioning

The Engineering - Construction industry in India is highly competitive and fragmented, characterized by a mix of large integrated players, mid-sized regional companies, and numerous smaller firms. It is significantly driven by government spending on infrastructure, private sector capital expenditure, and urbanization trends. Z-Tech, as an Indian company in this sector, operates within this competitive landscape, likely bidding for projects primarily within India. Its positioning relative to larger, more established players would depend on its project size, geographical focus, execution capabilities, and financial strength, which are not detailed here.

4. Competitive Advantage (Moat)

Without specific operational details, it is challenging to definitively identify durable competitive advantages (moats) for Z-Tech. Potential moats in the Engineering - Construction sector can include:

Execution capability: A proven track record of timely and high-quality project completion.

Cost efficiency: Ability to execute projects at competitive costs.

Specialized expertise: Niche capabilities in specific, complex construction areas.

Strong client relationships: Repeat business and long-term partnerships with clients (government bodies, PSUs, private corporations).

Financial strength: Capacity to bid for and execute large-scale, capital-intensive projects.

Safety record: A consistent focus on safety can enhance reputation and reduce risks.

However, these advantages are often difficult to sustain purely on scale in a fragmented market.

5. Growth Drivers

Key factors that could drive Z-Tech's growth over the next 3-5 years include:

Increased Government Infrastructure Spending: Continued focus by the Indian government on infrastructure development (e.g., National Infrastructure Pipeline, Gati Shakti scheme).

Urbanization and Industrial Growth: Rising demand for urban infrastructure, housing, and industrial facilities.

Order Book Expansion: Successful bidding and securing of new, larger, and more complex projects.

Diversification: Expanding into new geographical regions or niche segments within engineering and construction.

Technological Adoption: Implementation of modern construction techniques, digitalization, and project management tools to improve efficiency and reduce costs.

6. Risks

Z-Tech faces several business risks common to the Engineering - Construction industry:

Project Delays and Cost Overruns: Unforeseen issues, regulatory hurdles, or material/labor cost fluctuations can impact project profitability and timelines.

Intense Competition: High competition for tenders can lead to margin pressure.

Raw Material Price Volatility: Fluctuations in prices of key inputs like steel, cement, and fuel can directly impact project costs.

Regulatory and Environmental Risks: Changes in government policies, environmental regulations, or land acquisition issues can halt or delay projects.

Liquidity and Funding Risks: Dependence on working capital, timely payments from clients, and ability to raise funds for large projects.

Client Concentration: Over-reliance on a few major clients (especially government entities) can pose risks if those relationships sour or projects are curtailed.

Economic Slowdown: A general economic downturn can reduce private sector capex and government spending on infrastructure.

7. Management & Ownership

Information regarding the specific promoters, management quality, or detailed ownership structure of Z-Tech (India) Ltd. is not provided. Typically, Indian companies, especially in this sector, are promoter-driven, with significant ownership held by the founding families or individuals. Management quality would depend on their experience, strategic vision, execution capabilities, and corporate governance practices.

8. Outlook

Z-Tech (India) Ltd. operates in a sector poised for growth given India's robust infrastructure development agenda and urbanization trends. The bull case suggests that consistent government spending, a growing pipeline of infrastructure projects, and the company's ability to secure and execute contracts efficiently could lead to steady revenue growth and profitability. Opportunities exist in both traditional infrastructure and emerging areas like renewable energy infrastructure.

However, the bear case highlights significant industry-specific challenges. Intense competition, risks of project delays and cost overruns, volatility in raw material prices, and the need for continuous capital investment to bid for larger projects can put pressure on margins and financial health. The company's performance will heavily depend on its operational efficiency, risk management capabilities, and success in navigating the competitive bidding environment while maintaining a healthy order book.

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Z-Tech (India) Key Financials

Market Cap ₹824 Cr.

Stock P/E 42

P/B 5.4

Current Price ₹570

Book Value ₹ 106.5

Face Value 10

52W High ₹701

Dividend Yield 0%

52W Low ₹ 460

Z-Tech (India) Share Price

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Volume
Price

Z-Tech (India) Quarterly Price

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Z-Tech (India) Peer Comparison

Z-Tech (India) Quarterly Results

#(Fig in Cr.) Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025
Net Sales 11 19 16 22 16 19 24 35
Other Income 0 0 -0 0 0 0 0 0
Total Income 11 19 15 22 16 19 24 35
Total Expenditure 10 14 13 19 13 15 16 22
Operating Profit 1 5 2 3 3 4 8 13
Interest 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0
Exceptional Income / Expenses 0 0 0 0 0 0 0 0
Profit Before Tax 1 5 2 3 3 4 8 13
Provision for Tax -0 1 1 1 1 1 2 4
Profit After Tax 1 4 1 3 2 3 6 9
Adjustments -0 0 0 0 -0 -0 -0 1
Profit After Adjustments 1 4 1 3 2 3 6 9
Adjusted Earnings Per Share 1.2 0.5 1.1 2.9 1.8 2.3 4.5 6.3

Z-Tech (India) Profit & Loss

#(Fig in Cr.) Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 23 31 26 67 94 94
Other Income 0 0 0 0 0 0
Total Income 24 31 26 67 95 94
Total Expenditure 23 30 23 56 66 66
Operating Profit 1 1 3 12 28 28
Interest 0 0 0 0 0 0
Depreciation 0 0 0 1 1 0
Exceptional Income / Expenses 0 0 0 0 0 0
Profit Before Tax 1 0 3 11 27 28
Provision for Tax 0 0 1 3 8 8
Profit After Tax 1 0 2 8 20 20
Adjustments -0 0 0 0 1 1
Profit After Adjustments 1 0 2 8 20 20
Adjusted Earnings Per Share 0.7 0.1 2.2 9 14.1 14.9

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 40% 45% 0% 0%
Operating Profit CAGR 133% 204% 0% 0%
PAT CAGR 150% 0% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 5% NA% NA% NA%
ROE Average 23% 33% 22% 22%
ROCE Average 28% 41% 28% 28%

Z-Tech (India) Balance Sheet

#(Fig in Cr.) Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 8 8 10 22 171
Minority's Interest -0 -1 -1 0 0
Borrowings 0 0 0 1 2
Other Non-Current Liabilities 0 -0 -0 -0 0
Total Current Liabilities 11 11 13 19 34
Total Liabilities 19 19 23 42 207
Fixed Assets 1 1 1 4 10
Other Non-Current Assets 0 0 1 2 37
Total Current Assets 18 18 21 36 160
Total Assets 19 19 23 42 207

Z-Tech (India) Cash Flow

#(Fig in Cr.) Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 2 0 1 0 1
Cash Flow from Operating Activities -1 2 0 0 -91
Cash Flow from Investing Activities -0 -1 -1 -4 -35
Cash Flow from Financing Activities -0 -0 -0 4 129
Net Cash Inflow / Outflow -1 1 -1 1 3
Closing Cash & Cash Equivalent 0 1 0 1 4

Z-Tech (India) Ratios

# Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 0.73 0.1 2.24 9 14.08
CEPS(Rs) 0.98 0.42 2.71 9.67 14.14
DPS(Rs) 0 0 0 0 0
Book NAV/Share(Rs) 9.02 9.12 11.35 22.99 102.97
Core EBITDA Margin(%) 3.33 1.07 11.95 17.46 29.61
EBIT Margin(%) 4.65 0.74 10.88 16.59 29.34
Pre Tax Margin(%) 4.06 0.53 10.41 16.43 29.09
PAT Margin (%) 2.96 0.24 7.6 12.57 20.77
Cash Profit Margin (%) 3.67 1.22 9.29 13.52 21.46
ROA(%) 3.59 0.39 9.29 26.13 15.78
ROE(%) 8.76 0.93 21.71 53.51 23.18
ROCE(%) 12.3 2.58 28.79 66.41 28.32
Receivable days 188.99 144.9 193.28 118.16 149.59
Inventory Days 17.18 9.49 10.71 5.71 6.28
Payable days 170.12 140.85 199.86 237.38 1035.13
PER(x) 0 0 0 0 42.25
Price/Book(x) 0 0 0 0 5.78
Dividend Yield(%) 0 0 0 0 0
EV/Net Sales(x) 0.07 0.02 0.06 0.15 9.01
EV/Core EBITDA(x) 1.3 1.19 0.49 0.84 30
Net Sales Growth(%) 0 30.48 -16.04 161.68 40.23
EBIT Growth(%) 0 -79.16 1129.61 299.1 147.94
PAT Growth(%) 0 -89.33 2534.77 332.72 131.75
EPS Growth(%) 0 -86.97 2236.22 302.67 56.46
Debt/Equity(x) 0.12 0.09 0.07 0.06 0.01
Current Ratio(x) 1.6 1.55 1.56 1.84 4.67
Quick Ratio(x) 1.5 1.51 1.48 1.78 4.61
Interest Cover(x) 7.86 3.43 23.3 105.18 118.56
Total Debt/Mcap(x) 0 0 0 0 0

Z-Tech (India) Shareholding Pattern

# Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 60.75 60.75 54.25 54.25 53.18 53.54 53.54
FII 1.73 1.21 0.96 0.88 1.04 3.77 4.47
DII 0.06 0.87 1.47 1.67 1.89 0.37 0.37
Public 37.46 37.18 43.32 43.21 43.9 42.32 41.62
Others 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100

Z-Tech (India) News

Z-Tech (India) Pros & Cons

Pros

  • Company has a good return on equity (ROE) track record: 3 Years ROE 33%
  • Company is almost debt free.

Cons

  • Debtor days have increased from 237.38 to 1035.13days.
  • Stock is trading at 5.4 times its book value.
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