Zenith Drugs Stock Price Analysis and Quick Research Report. Is Zenith Drugs an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Zenith Drugs. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Zenith Drugs has a PE ratio of 16.413657695623 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Zenith Drugs has ROA of 8.2454% which is a bad sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Zenith Drugs has a Current ratio of 1.7603.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Zenith Drugs has a ROE of 23.857%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Zenith Drugs has a Debt to Equity ratio of 0.3847 which means that the company has low proportion of debt in its capital.

• Sales growth: Zenith Drugs has reported revenue growth of 14.9325% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Zenith Drugs for the current financial year is 12.5340659490942%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Zenith Drugs is Rs 0.5 and the yield is 0%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Zenith Drugs is Rs 4.1764. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Zenith Drugs in Ticker for free. Also, one can get the intrinsic value of Zenith Drugs by using Valuation Calculators, which are available with a Finology ONE subscription. 

Zenith Drugs FAQs

Q1. What is Zenith Drugs share price today?
Ans: The current share price of Zenith Drugs is Rs 68.55.

Q2. What is the market capitalisation of Zenith Drugs?
Ans: Zenith Drugs has a market capitalisation of Rs 117.555024 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Zenith Drugs?
Ans: The PE ratio of Zenith Drugs is 16.413657695623 and the P/B ratio of Zenith Drugs is 1.88938745810549, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Zenith Drugs share?
Ans: The 52-week high share price of Zenith Drugs is Rs 154.4, and the 52-week low share price of Zenith Drugs is Rs 47.15.

Q5. Does Zenith Drugs pay dividends?
Ans: Currently, Zenith Drugs does not pay dividends. Dividend yield of Zenith Drugs is around 0%.

Q6. What are the face value and book value of Zenith Drugs shares?
Ans: The face value of Zenith Drugs shares is Rs 10, while the book value per share of Zenith Drugs is around Rs 36.2816. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Zenith Drugs?
Ans: Zenith Drugs has a total debt of Rs 23.933 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Zenith Drugs?
Ans: The ROE of Zenith Drugs is 23.857% and ROCE of Zenith Drugs is 25.1978%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Zenith Drugs a good buy for the long term?
Ans: The Zenith Drugs long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Zenith Drugs undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Zenith Drugs appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Zenith Drugs’s financials?
Ans: You can review Zenith Drugs’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.