Wednesday, December 31: Shares of ZF Steering Gear (India) gained over 4% in early trade, trading around Rs 773.80 on the BSE, after the company announced a major contract win in the renewable energy segment.
What triggered the rally?
The stock moved higher after ZF Steering Gear India disclosed that its subsidiary has secured a contract worth Rs 151 crore for the supply of renewable energy components. The order marks a key business development for the company, which has traditionally been focused on automotive steering systems.
Key details of the contract
The newly secured order involves manufacturing and supplying parts used in renewable energy applications. While the company did not disclose the client name, the contract size of Rs 151 crore is significant relative to ZF Steering Gear India’s current market capitalisation of around Rs 745 crore.
This has led investors to factor in improved revenue visibility and diversification beyond the core automotive business.
Why the market reacted positively
Market participants see this contract as:
- A strategic diversification into the fast-growing renewable energy sector
- An opportunity to leverage existing engineering and manufacturing capabilities beyond automobiles
- A step towards reducing dependence on cyclical auto demand
The order also aligns with India’s broader push towards renewable energy capacity expansion, making such contracts structurally important for ancillary manufacturers.
Stock movement today
Following the announcement, ZF Steering Gear India shares rose over 4% intraday, reflecting positive sentiment around the company’s expanding business mix and order book visibility.
For now, the stock remains in focus as investors track how renewable energy orders contribute to the company’s overall execution and revenue profile in the coming quarters.
