Zelio E-Mobility Limited

Consumer Cyclical — Auto Manufacturers · BSE

₹1,105.50−₹20.55 (−1.82%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Zelio E-Mobility Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Zelio E-Mobility Limited manufactures, assembles, and supplies electric vehicles.

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees226

Annual revenue₹311 Cr

How does it make money?

Turns over ₹311 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 226 employees supports ₹1.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, MAHINDRA & MAHINDRA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 31.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE19.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 0 years revenue moved +0% while net margin moved +0% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+0%

Margin effect+0%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 73.0x is demanding — it needs sustained high growth to justify
✗ P/B of 20.96x is a steep premium to book

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

28/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

73.0x

Sector Median

25.2x

median of 3 sector peers

⚠️Against its sector it trades 190% above the peer median of 25.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

25.2x median of 3 peers · +190%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

61.7x

PEG

1.61

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 31.6% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹21 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 190% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 29%✓ 31.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹2,338 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

73.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

20.96x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.14

Profitable

Profitable on a per-share basis

ROE

41.1%

Strong

Strong capital efficiency

ROCE

31.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

80.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

45.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹31 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

19.0%

Good

Assets are working hard

Operating Margin

10.2%

Average

Average margins

Net Margin

9.1%

Average

Average bottom-line conversion

Current Ratio

3.36

Comfortable

Healthy short-term liquidity

52W Range Position

94%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1053.4 / 918.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.9

Neutral momentum

Financial Trend (Annual)

Year	Revenue	Gross Profit	Net Income
2025	—	—	—
2026	₹311 Cr	₹62 Cr	₹28 Cr

Balance Sheet & Cash Flow — FY2026

Total Assets

₹155 Cr

Total Liabilities

₹43 Cr

Total Debt

₹20 Cr

Cash & Equivalents

₹26 Cr

Operating Cash Flow

-₹11 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

1.7%

Insider Holding

88.6%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TATA MOTORS LIMITED	37.1x	32.8%
TATA MOTORS PASS VEH LTD	—	-3.0%
MAHINDRA & MAHINDRA LTD	17.8x	19.7%

Recent News

1 mixed5 general

Zelio E Mobility Upper Circuit Today: Price, Data and Peers

Univest, 13 Oct

Zelio E-Mobility Opens Coimbatore Manufacturing Plant; Shares Hit 5% Upper Circuit

HDFC Sky, 13 Jul

Zelio E-Mobility to Raise Rs 168 Crore to Fund Plant Expansion

Autocar Professional, 25 SeptCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Zelio E-Mobility shareholders approve ₹1,000 crore borrowing cap

scanx.trade, 02 Oct

Motilal Oswal buys 1.65% stake in Zelio E-Mobility for ₹9.8 crore

Business Standard, 05 Mar

Zelio E-Mobility to Raise Rs 167.96 Crore

Entrepreneur India, 25 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑