During Wednesday’s trading session, the shares of a company engaged in providing advanced braking systems, conventional braking products and related air-assisted technologies and systems in India surged nearly 7.5 percent on BSE.
Price Movement
With a market cap of Rs. 23,885.5 crores, the shares of ZF Commercial Vehicle Control System India Limited closed in the green at Rs. 12,592.8, up by around 5 percent, as compared to its previous closing price of Rs. 11,988.3. The stock has delivered negative returns of nearly 16 percent over a one-year period, while around 5 percent of positive returns year-to-date.
What’s the News
According to sources, all new passenger vehicle models designed to carry more than eight people, along with buses and trucks, will be required to include advanced emergency braking systems (AEBS), driver drowsiness and attention warning systems (DDAWS), and lane departure warning systems (LDWS), starting from April 2026.
These safety measures, outlined in a draft notification by the Ministry of Road Transport, will also apply to existing vehicle models manufactured from October 2026. ZF Commercial Vehicle Control System India stands to benefit from this measure, as it specializes in manufacturing braking systems. The company is the market leader for advanced braking systems, conventional braking products, and related air-assisted technologies and systems.
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Financial Performance
ZF Commercial Vehicle reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 7 percent, rising from Rs. 899 crores in Q3 FY24 to Rs. 962 crores in Q3 FY25. Similarly, during the same period, the company’s net profit increased from Rs. 101 crores to Rs. 125 crores, representing a growth of around 24 percent YoY.
Key Financial Ratios
In terms of key financial metrics, ZF Commercial Vehicle has a Return on Equity (RoE) of 15.5 percent and a return on capital employed (RoCE) of 21 percent. Additionally, the stock has a P/E ratio of 55.3, compared to the industry’s P/E ratio of 24.8, and its debt-to-equity ratio stands at 0.02.
About the Company
ZF Commercial Vehicle Control Systems India Limited, formerly known as WABCO India Limited, is primarily engaged in the business of manufacturing air brake actuation systems for commercial vehicles. The company is also engaged in the rendering of software development and other services. It offers comprehensive solutions designed to enhance the safety, connectivity, efficiency, and performance of commercial vehicles OEM’s and fleets.
Written by Shivani Singh
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