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Should I Buy NSE:ZUARIGLOB Stock? (8% Forecasted Return) | ZUARIGLOB Zuari Global Limited Stock Forecast



Our view of a company's financial policy is an important input when assessing its current and future liquidity position. For instance, we assess whether a company has historically had a higher risk appetite and an aggressive acquisition strategy that has strained its liquidity position, or whether it has taken actions to preserve liquidity in past downturns.In our assessment of a company's liquidity, we also consider the impact of unique industry characteristics. We estimate ZUARIGLOB Zuari Global Limited stock forecast parameters by: On Balance Volume (OBV) with Beta because the liabilities' resolution-driven default is unlikely because of all of the following: The type of liability is earmarked in the resolution framework for potential exclusion from bail-in at the discretion of the national regulator, other creditors in our view are unlikely to legally challenge such an exclusion (8% Forecasted Return)

NSE:ZUARIGLOB Stock Forecast (Buy or Sell) as of 22 Jun 2022 for (n+3 month)

Stock: ZUARIGLOB Zuari Global Limited

Time series to forecast n: 22 Jun 2022 for (n+3 month)

x axis:Likelihood %
y axis:Potential Impact %
z axis:Color (yellow to green) Technical Analysis %

Stock Forecast Criteria and Models for ZUARIGLOB Zuari Global Limited

  • Obligated groups are created for purposes of securing debt, and do not have operating or governance independence from the larger group. While debt covenants may contain some restrictions, for example limitations on the transfer of assets out of the obligated group, covenants are generally not strong enough to insulate the obligated group from the strategic and operating influence of the group. An obligated group, therefore, is typically not rated higher than the GCP.
  • The rating analysis for structured finance typically includes an analysis of payment structure and cash flow mechanics. This portion of the analysis may involve both assessing the documentation for a security and testing the cash flows using quantitative models.
  • When the sovereign rating is 'B' or lower, the specific default scenario might be more predictable. If the sovereign rating is 'B' or 'B-', we might develop a country-specific default scenario to determine whether we could rate entities above the sovereign. For sovereign ratings of 'CCC+' and below, we expect the current stressed conditions to represent both our base case and the expected default scenario
  • We have observed that, regardless of the initial sovereign rating, sovereign defaults over the past two decades have tended to share similar characteristics.
  • For unlisted equities, we add 10% (equivalent to a 125% risk weight add-on) to the charge we apply for listed equity investments
  • In addition to a coupon deferral feature, has a mandatory permanent write-down of 100% of principal or conversion into new common equity that occurs before the drawdown of any callable capital and before default on any senior obligations
  • If a hybrid issued by a nonprudentially regulated entity is not issued to one or two investors originally, as stipulated above, but it subsequently comes to our attention that ownership of the hybrid series has evolved in the secondary market such that it is now owned by one or two investors, and we expect that ownership structure to be retained in future, we may decide to remove any equity content that was previously assigned.

Assumptions Underlying The Forecast Model for ZUARIGLOB Zuari Global Limited

Likewise, we do not consider factoring programs under sources of liquidity. Unlike asset-based lending (ABL) facilities, factoring is more of a sales transaction and not a loan. In addition, these transactions tend to be very short term. For this reason, we would not consider them a committed source of future liquidity over a 12-month period.

Frequently Asked QuestionsQ: Is ZUARIGLOB Zuari Global Limited stock buy or sell?
A: Our view of a company's financial policy is an important input when assessing its current and future liquidity position. For instance, we assess whether a company has historically had a higher risk appetite and an aggressive acquisition strategy that has strained its liquidity position, or whether it has taken actions to preserve liquidity in past downturns.
Q: Is ZUARIGLOB Zuari Global Limited stock expected to go up?
A: In our assessment of a company's liquidity, we also consider the impact of unique industry characteristics.
Q: What is the forecast for ZUARIGLOB Zuari Global Limited ?
A: Likewise, we do not consider factoring programs under sources of liquidity. Unlike asset-based lending (ABL) facilities, factoring is more of a sales transaction and not a loan. In addition, these transactions tend to be very short term. For this reason, we would not consider them a committed source of future liquidity over a 12-month period.
Q: What is the consensus rating of ZUARIGLOB Zuari Global Limited ?
A: The consensus rating for ZUARIGLOB Zuari Global Limited is 70.
Q: What are the risks of investing ZUARIGLOB Zuari Global Limited ?
A: We use risk analysis for ZUARIGLOB Zuari Global Limited because the liabilities' resolution-driven default is unlikely because of all of the following: The type of liability is earmarked in the resolution framework for potential exclusion from bail-in at the discretion of the national regulator, other creditors in our view are unlikely to legally challenge such an exclusion


ZUARIGLOB Zuari Global Limited