Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strategic project completions and ongoing sales momentum.
Basis of our Recommendation
ZUARIIND is positioned for growth with significant cash inflows anticipated from the St. Regis Dubai project and strong sales in the Zuari Garden City Project. The company is strategically shifting towards an asset-light model while focusing on cost optimization in its sugar division. However, challenges in the ethanol sector and macroeconomic pressures present risks to its outlook.
Why We Like This Stock
- Significant cash inflows expected from the St. Regis Dubai project nearing completion
- Strong sales performance in the Zuari Garden City Project Phase IV, which is 75% sold out
- Strategic shift towards an asset-light development model enhancing growth potential
Things To Watch Out For
- Ethanol sector facing immediate headwinds due to overcapacity and stagnant prices
- Macroeconomic concerns and rising input costs pose risks to overall performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 186 | 174 | 334 | 349 | 376 |
| Profit Before Tax (Cr.) | -71 | -68 | 131 | 137 | 148 |
| PBT Margin | -38.2% | -39.1% | 39.2% | 39.2% | 39.2% |
| Net Profit (Cr.) | -1 | -71 | 126 | 101 | 109 |
| EPS | 0.1 | -23.4 | 43.0 | 33.9 | 36.6 |
Company Overview
Show Company Profile
Zuari Industries Limited engages in agriculture, heavy engineering, infrastructure, lifestyle, and services businesses in India and internationally. It operates through the Engineering Services, Furniture, Real Estate, Sugar, Power, Financial Services, Ethanol, and Management Services segments. The Engineering Services segment offers technology, basic engineering, detailed engineering, project management, procurement, and construction services in the engineering and contracting sector. Its Furniture segment manufactures, sells, and trades furniture products. The Real Estate segment develops real estates. Its Financial services segment provides capital market related services. The Sugar segment engages in the extraction of sugar from sugar cane. Its Power segment is involved in the co-generation of power using by-product of the sugar extraction, such as bagasse. The Ethanol segment manufactures ethanol using molasses. Its Management Services segment offers management consultancy, manpower outsourcing, and related services. The company also provides HR solutions, consumer food trading, and insurance; depository participant services; and mutual fund products. The company was formerly known as Zuari Global Limited and changed its name to Zuari Industries Limited in June 2022. Zuari Industries Limited was incorporated in 1967 and is based in Gurugram, India.