WEBSITE BSE:531845 NSE: ZENITHSTL Inc. Year: 1960 Industry: Steel & Iron Products My Bucket: Add Stock
Last updated: 15:54
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1. Business Overview
Zenith Steel Pipes & Industries Ltd. is an Indian manufacturer and marketer of various types of steel pipes and tubes. The company primarily produces Electric Resistance Welded (ERW) steel pipes (both black and galvanized) and Structural Hollow Sections (RHS/SHS). These products find extensive applications across diverse sectors including agriculture (irrigation), infrastructure (water supply, roads, railway), construction (residential and commercial buildings), general engineering, and industrial uses. The company generates revenue by manufacturing these products and selling them to a wide network of distributors, project developers, and directly to end-user industries across India.
2. Key Segments / Revenue Mix
The company's primary revenue streams are derived from its product categories:
ERW Black Pipes: Used for general engineering, scaffolding, furniture, and industrial applications.
Galvanized Iron (GI) Pipes: Coated with zinc for corrosion resistance, used in water supply, irrigation, and plumbing.
Structural Hollow Sections (RHS/SHS): Used in construction for structural support, sheds, and frameworks.
While specific revenue contribution percentages per segment are not consistently disclosed publicly by the company, these three categories form the core of its product portfolio and sales mix.
3. Industry & Positioning
Zenith Steel Pipes operates in the highly competitive Indian steel pipe and tube industry. The industry is characterized by the presence of large integrated steel players, mid-sized specialized manufacturers, and numerous smaller regional players. Key competitors include APL Apollo Tubes, Surya Roshni, Ratnamani Metals & Tubes, Jindal Saw, and Maharashtra Seamless. Zenith Steel Pipes is a mid-sized player with a long-standing presence, particularly known for its ERW and GI pipe offerings. It competes on product quality, distribution reach within its target markets, and competitive pricing, typically serving both the project and retail segments.
4. Competitive Advantage (Moat)
Zenith Steel Pipes possesses certain advantages, though a strong, wide "moat" might be limited given the fragmented industry:
Established Brand & Dealer Network: A long operational history in the Indian market has allowed it to build an established brand reputation and a wide distribution network, crucial for reaching diverse customers across the country.
Product Diversification: Offering a range of ERW, GI, and structural pipes under one roof helps cater to various customer needs and reduces dependence on a single product type.
Operational Experience: Years of experience in manufacturing steel pipes allows for accumulated process knowledge and potentially optimized cost structures.
5. Growth Drivers
Key factors expected to drive Zenith Steel Pipes' growth over the next 3-5 years include:
Government Infrastructure Spending: Continued focus on "Make in India," "Har Ghar Jal" (water to every household), smart cities, road construction, and irrigation projects will significantly boost demand for steel pipes.
Housing and Construction Growth: Increasing demand for residential and commercial construction, coupled with affordable housing initiatives, will drive the need for structural and plumbing pipes.
Agriculture Sector Revival: Government impetus on irrigation and agricultural infrastructure will support demand for GI pipes.
Capacity Expansion: Any planned or ongoing capacity expansions by the company would directly translate to higher sales volumes.
Industrial Revival: Growth in general manufacturing and industrial activity will lead to increased demand for engineering and industrial pipes.
6. Risks
Zenith Steel Pipes faces several business risks:
Raw Material Price Volatility: Steel (Hot Rolled Coils - HRC) is the primary raw material, and its price fluctuations directly impact manufacturing costs and profitability.
Intense Competition & Pricing Pressure: The fragmented and competitive nature of the Indian steel pipe market can lead to pricing wars, impacting profit margins.
Economic Slowdown: A downturn in the broader Indian economy can lead to reduced industrial activity, infrastructure spending, and construction, thereby dampening demand for steel pipes.
Import Competition: Cheaper imports from other countries can put pressure on domestic prices and market share.
Interest Rate Fluctuations: As a capital-intensive industry, rising interest rates can increase borrowing costs and impact profitability.
Regulatory & Environmental Changes: New government policies, trade tariffs, or stricter environmental norms could impact operations and costs.
7. Management & Ownership
Zenith Steel Pipes & Industries Ltd. is promoted by the Goenka family. Historically, it had associations with the B.K. Birla Group. The promoter group typically holds a significant stake in the company, aligning their interests with long-term shareholder value. While specific details on current management quality would require deeper public reports, the company has a track record spanning decades, indicating experienced leadership in the steel pipe sector.
8. Outlook
Zenith Steel Pipes operates in a cyclical but structurally growing industry in India. The company is well-positioned to benefit from the secular tailwinds of infrastructure development, urbanization, and agricultural growth in India. Its established brand and distribution network provide a solid foundation. However, the business remains susceptible to raw material price volatility, which can lead to margin fluctuations. Intense competition from larger, more integrated players and smaller regional manufacturers will continue to exert pricing pressure. The company's ability to manage costs, expand capacity judiciously, and adapt to market dynamics while navigating the cyclical nature of the steel industry will be crucial for sustained growth and profitability.
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Market Cap ₹85 Cr.
Stock P/E 176.9
P/B -0.3
Current Price ₹6
Book Value ₹ -17.8
Face Value 10
52W High ₹10.3
Dividend Yield 0%
52W Low ₹ 4.4
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 28 | 46 | 43 | 29 | 30 | 36 | 25 | 19 | 14 | 9 |
| Other Income | 0 | 0 | 5 | 2 | 1 | 1 | 6 | 7 | 7 | 6 |
| Total Income | 28 | 46 | 48 | 30 | 31 | 37 | 31 | 25 | 21 | 16 |
| Total Expenditure | 34 | 45 | 36 | 31 | 31 | 36 | 27 | 23 | 19 | 13 |
| Operating Profit | -6 | 1 | 11 | -1 | 1 | 1 | 4 | 2 | 2 | 3 |
| Interest | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -8 | -1 | 10 | -2 | -0 | -0 | 3 | 1 | 1 | 1 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -8 | -1 | 10 | -2 | -0 | -0 | 3 | 1 | 1 | 1 |
| Adjustments | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 |
| Profit After Adjustments | -8 | -1 | 10 | -2 | -0 | -0 | 3 | 1 | 1 | 1 |
| Adjusted Earnings Per Share | -0.5 | -0 | 0.7 | -0.1 | -0 | -0 | 0.2 | 0.1 | 0.1 | 0.1 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 84 | 91 | 157 | 170 | 184 | 101 | 78 | 163 | 165 | 143 | 119 | 67 |
| Other Income | 9 | 23 | 1 | 17 | 14 | 13 | 11 | 1 | 7 | 5 | 10 | 26 |
| Total Income | 93 | 114 | 158 | 186 | 197 | 114 | 89 | 164 | 172 | 149 | 129 | 93 |
| Total Expenditure | 142 | 129 | 176 | 212 | 298 | 132 | 79 | 148 | 177 | 144 | 122 | 82 |
| Operating Profit | -49 | -15 | -18 | -25 | -100 | -18 | 9 | 16 | -5 | 5 | 7 | 11 |
| Interest | 9 | 10 | 9 | 8 | 7 | 5 | 3 | 7 | 3 | 3 | 5 | 4 |
| Depreciation | 6 | 6 | 6 | 7 | 6 | 6 | 3 | 3 | 2 | 3 | 2 | 0 |
| Exceptional Income / Expenses | -7 | -1 | -0 | -1 | -7 | 0 | 0 | 8 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -71 | -33 | -33 | -41 | -120 | -28 | 3 | 14 | -11 | -0 | 0 | 6 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 0 |
| Profit After Tax | -71 | -33 | -33 | -41 | -120 | -28 | 3 | 12 | -11 | -0 | 0 | 6 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | -16 | -1 | -3 | -0 | -0 | 0 |
| Profit After Adjustments | -71 | -33 | -33 | -41 | -120 | -28 | -14 | 12 | -14 | -1 | 0 | 6 |
| Adjusted Earnings Per Share | -5.4 | -2.5 | -2.5 | -3.1 | -9.2 | -2.2 | -1 | 0.8 | -1 | -0 | 0 | 0.5 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -17% | -10% | 3% | 4% |
| Operating Profit CAGR | 40% | -24% | 0% | 0% |
| PAT CAGR | 0% | -100% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -19% | 13% | 40% | 24% |
| ROE Average | 0% | 0% | 0% | -48% |
| ROCE Average | 0% | 0% | 0% | -27% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | -22 | -55 | -88 | -129 | -242 | -251 | -254 | -242 | -256 | -257 | -257 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 17 | 22 | 20 | 23 | 10 | 14 | 7 | 11 | 7 | 22 | 22 |
| Other Non-Current Liabilities | 25 | 23 | 11 | 11 | 12 | 11 | 11 | 11 | 10 | 11 | 10 |
| Total Current Liabilities | 345 | 369 | 410 | 441 | 457 | 406 | 372 | 412 | 407 | 406 | 382 |
| Total Liabilities | 366 | 360 | 353 | 346 | 236 | 180 | 136 | 192 | 169 | 182 | 159 |
| Fixed Assets | 97 | 97 | 92 | 80 | 75 | 66 | 48 | 44 | 45 | 44 | 42 |
| Other Non-Current Assets | 25 | 23 | 18 | 17 | 18 | 4 | 2 | 2 | 4 | 28 | 29 |
| Total Current Assets | 244 | 239 | 243 | 249 | 143 | 110 | 86 | 146 | 121 | 110 | 88 |
| Total Assets | 366 | 360 | 353 | 346 | 236 | 180 | 136 | 192 | 169 | 182 | 159 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 2 | 2 | 5 | 3 | 4 | 4 | 2 | 2 | 3 | 5 | 1 |
| Cash Flow from Operating Activities | -31 | -5 | 7 | 4 | 21 | 25 | 16 | -1 | 17 | 5 | 6 |
| Cash Flow from Investing Activities | 53 | 7 | -2 | 5 | -0 | 14 | -0 | 9 | -4 | -2 | -2 |
| Cash Flow from Financing Activities | -23 | 1 | -7 | -7 | -21 | -41 | -15 | -7 | -11 | -7 | -2 |
| Net Cash Inflow / Outflow | -1 | 3 | -2 | 2 | 0 | -2 | 1 | 0 | 2 | -5 | 2 |
| Closing Cash & Cash Equivalent | 2 | 5 | 3 | 4 | 5 | 3 | 3 | 2 | 5 | 0 | 3 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -5.41 | -2.49 | -2.53 | -3.13 | -9.15 | -2.16 | -0.95 | 0.82 | -1.01 | -0.05 | 0.02 |
| CEPS(Rs) | -4.93 | -2.02 | -2.05 | -2.57 | -8.7 | -1.73 | 0.4 | 1.06 | -0.61 | 0.15 | 0.17 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | -1.68 | -4.17 | -6.71 | -9.79 | -18.42 | -19.14 | -17.83 | -17 | -18 | -18.05 | -18.05 |
| Core EBITDA Margin(%) | -66.05 | -38.18 | -11.77 | -24.21 | -62.11 | -30.34 | -1.97 | 9.24 | -7.42 | -0.2 | -2.59 |
| EBIT Margin(%) | -70.37 | -22.79 | -15.13 | -19.15 | -61.47 | -23.49 | 8.13 | 12.95 | -4.62 | 1.72 | 4.3 |
| Pre Tax Margin(%) | -81.1 | -33.51 | -20.48 | -23.56 | -65.44 | -27.96 | 3.67 | 8.66 | -6.73 | -0.32 | 0.4 |
| PAT Margin (%) | -81.2 | -33.56 | -20.48 | -23.56 | -65.44 | -27.96 | 3.67 | 7.65 | -6.73 | -0.32 | 0.4 |
| Cash Profit Margin (%) | -74.01 | -27.29 | -16.63 | -19.35 | -62.17 | -22.39 | 7.32 | 9.29 | -5.25 | 1.48 | 2.04 |
| ROA(%) | -16.8 | -9.01 | -9.32 | -11.75 | -41.27 | -13.63 | 1.81 | 7.6 | -6.15 | -0.26 | 0.28 |
| ROE(%) | -526.1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| ROCE(%) | -21.06 | -9.03 | -10.95 | -17.61 | -108.08 | -128.37 | 0 | 0 | 0 | 0 | 0 |
| Receivable days | 455.39 | 398.18 | 264.77 | 253.53 | 151.12 | 80.78 | 49.1 | 69.63 | 107.55 | 135.29 | 177.22 |
| Inventory Days | 54.99 | 59.95 | 35.72 | 17.7 | 4.9 | 11.37 | 37.87 | 43.41 | 54.15 | 52 | 42.38 |
| Payable days | 296.08 | 185.29 | 150.69 | 174.73 | 227.68 | 371.65 | 362.02 | 251.06 | 270.03 | 413.42 | 601.41 |
| PER(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.89 | 0 | 0 | 411.39 |
| Price/Book(x) | -0.55 | -0.14 | -0.09 | -0.18 | -0.03 | -0.02 | -0.03 | -0.14 | -0.19 | -0.42 | -0.36 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 3.42 | 3.21 | 1.94 | 1.85 | 1.56 | 2.47 | 2.99 | 1.58 | 1.59 | 2.24 | 2.56 |
| EV/Core EBITDA(x) | -5.9 | -20.06 | -16.77 | -12.35 | -2.85 | -13.75 | 25.36 | 16.17 | -50.71 | 63.7 | 43.01 |
| Net Sales Growth(%) | -63.37 | 8.89 | 71.52 | 8.11 | 8.24 | -44.79 | -23.19 | 109.47 | 1.11 | -13.16 | -16.85 |
| EBIT Growth(%) | 66.23 | 63.99 | -10.61 | -36.1 | -238.11 | 78.9 | 126.58 | 233.51 | -136.1 | 132.34 | 107.85 |
| PAT Growth(%) | 65.07 | 54.05 | -1.65 | -23.72 | -192.57 | 76.41 | 110.08 | 336.79 | -189 | 95.83 | 203.5 |
| EPS Growth(%) | 65.07 | 54.05 | -1.65 | -23.72 | -192.57 | 76.41 | 55.81 | 185.65 | -223.7 | 95.15 | 132.24 |
| Debt/Equity(x) | -12.58 | -5.32 | -3.4 | -2.3 | -1.17 | -0.98 | -0.9 | -0.94 | -0.86 | -0.84 | -0.84 |
| Current Ratio(x) | 0.71 | 0.65 | 0.59 | 0.57 | 0.31 | 0.27 | 0.23 | 0.35 | 0.3 | 0.27 | 0.23 |
| Quick Ratio(x) | 0.67 | 0.6 | 0.56 | 0.56 | 0.31 | 0.26 | 0.2 | 0.29 | 0.24 | 0.22 | 0.21 |
| Interest Cover(x) | -6.56 | -2.13 | -2.83 | -4.34 | -15.49 | -5.26 | 1.82 | 3.02 | -2.19 | 0.84 | 1.1 |
| Total Debt/Mcap(x) | 22.93 | 38.22 | 39.4 | 13.03 | 39.23 | 42.74 | 27.62 | 6.77 | 4.53 | 2 | 2.33 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 15.64 | 15.64 | 15.64 | 15.64 | 15.64 | 15.64 | 15.64 | 15.64 | 15.64 | 15.64 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.12 | 0.08 | 0.08 | 0.08 | 0.08 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Public | 84.24 | 84.28 | 84.28 | 84.28 | 84.28 | 84.34 | 84.34 | 84.34 | 84.34 | 84.34 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 2.23 | 2.23 | 2.23 | 2.23 | 2.23 | 2.23 | 2.23 | 2.23 | 2.23 | 2.23 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0 | 0 | 0 | 0 | 0 |
| Public | 11.99 | 11.99 | 11.99 | 11.99 | 11.99 | 12 | 12 | 12 | 12 | 12 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 14.23 | 14.23 | 14.23 | 14.23 | 14.23 | 14.23 | 14.23 | 14.23 | 14.23 | 14.23 |
* The pros and cons are machine generated.
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