ZF is no longer “just a braking system company” but a complete solutions provider with advance technologies for Electric vehicles.
THIS STOCK WILL ALWAYS LOOK EXPENSIVE & WILL REMAIN EXPENSIVE. ZF IS ONLY FOR THOSE WHO CAN SIT ON THIS BEAUTIFUL COMPANY FOR NEXT 2-3 YEARS ATLEAST.
We expect ~60% PAT CAGR Over FY22-25e, RoIC to cross 40% by FY25e, 3x rise in content per vehicle, available at PE of 40x / 30x over FY24/25 (well below 10Y avg PE of 57x). Co has a dominant share in M&HCV braking solutions (>85%). In FY22, Sales Mix was as follows: OEM ~45%, aftermarket ~14%, exports ~41%.
This is a company with very high technology moat & is the lowest cost producer with highest content per vehicle. It is not just a braking company, but technology solutions provider: ZF CV has large bouquet of advanced technology solutions. This include ADAS (Advanced driver assistance system); ADB (Air disc brake); AM (Air management), DCS (Door control system) eComp (Electric compressor), EBS (Electronic brake system), ECAS (Electronically controlled air suspension), TPMS (Tire pressure monitoring systems).