CMP: 261

ZF Steering Gear (India) Limited specializes in the manufacture of mechanical and power steering gears. The Company has also developed a twin arm Mechanical Recirculating Ball and Nut Steering Gear, which is used in a number of tractor applications.

ZF Steering Gear is a 237 Crore penny cap stock. Its currently trading at a P/E of little over 5 with excellent dividend yields of almost 4% in the last 12 months. Minimal liability. Revenues have grown steadily from 216 Crores to 300 Crores in the last 5 years. Profits have risen from 27 Crores to 41 Crores in the last 5 years. NPM has risen marginally towards 14% over last 5 years. Current valuations are attractive due to market corrections. Buy and hold for long term gains.