Stock Price Movement and Market Context
On 30 Dec 2025, Z F Steering Gear (India) Ltd's share price touched an intraday low of Rs.735, representing a 2.25% drop from the previous close. Despite an intraday high of Rs.774.95, the stock closed lower, underperforming its sector by 0.45%. This new low contrasts sharply with the stock's 52-week high of Rs.1,545, reflecting a steep decline of over 52% from its peak.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex opened 94.55 points lower but remains only 1.93% below its own 52-week high of 86,159.02. The Sensex is trading below its 50-day moving average, though this average remains above the 200-day moving average, signalling a mixed but relatively stable market environment.
Financial Performance and Profitability Metrics
Over the past year, Z F Steering Gear (India) Ltd has delivered a total return of -48.74%, significantly lagging behind the Sensex's positive 8.05% return and the BSE500's 5.28% gain. This underperformance is underpinned by deteriorating financial results and subdued profitability.
The company’s Return on Capital Employed (ROCE) stands at a low 3.76%, highlighting limited efficiency in generating profits from its capital base. This figure is notably weak for the auto components sector, where higher ROCE values are typically expected to reflect operational effectiveness and capital utilisation.
Operating profit has contracted at an annualised rate of -28.65% over the last five years, signalling a persistent decline in core earnings. The company has reported negative results for five consecutive quarters, with the latest quarterly Profit Before Tax (PBT) excluding other income at a loss of Rs.0.85 crore, a 211.5% decline compared to the previous four-quarter average. Similarly, the quarterly Profit After Tax (PAT) fell by 112.3% to a loss of Rs.0.39 crore.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Debt and Valuation Considerations
Despite the challenges in profitability, Z F Steering Gear (India) Ltd maintains a relatively manageable debt profile. The company’s Debt to EBITDA ratio stands at 1.27 times, indicating a moderate level of leverage and a reasonable capacity to service its debt obligations.
The stock’s valuation metrics reflect its current performance and market sentiment. With a ROCE of 1.7 and an Enterprise Value to Capital Employed ratio of 1.4, the company is trading at a discount relative to its peers’ historical averages. This discount is consistent with the company’s subdued earnings and the negative trend in profitability, which has seen profits decline by 66.3% over the past year.
Shareholding and Market Participation
Notably, domestic mutual funds hold no stake in Z F Steering Gear (India) Ltd. Given their capacity for detailed research and due diligence, this absence may reflect a cautious stance towards the company’s current valuation and business outlook. The lack of institutional participation contrasts with the company’s size and sector presence, further underscoring the challenges faced in attracting broader market interest.
Recent Rating and Market Sentiment
Reflecting the company’s financial and operational performance, its Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell as of 8 Dec 2025. This represents a downgrade from the previous Sell rating, signalling increased caution among rating agencies. The Market Cap Grade is 4, indicating a mid-tier market capitalisation relative to other listed companies in the sector.
Holding Z F Steering Gear (India) Ltd from Auto Components & Equipments? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Performance Indicators
Z F Steering Gear (India) Ltd’s recent financial and market data present a challenging picture. The company’s stock price has declined by nearly half over the past year, with a 52-week low of Rs.735 reached on 30 Dec 2025. Profitability metrics such as ROCE and operating profit growth remain subdued, while quarterly losses have persisted for over a year. The company’s debt levels are moderate, but valuation discounts reflect the market’s cautious stance.
In comparison, the broader market indices have maintained positive returns, with the Sensex up 8.05% over the same period. The absence of domestic mutual fund holdings further highlights the limited institutional confidence in the stock at present.
Market and Sector Outlook
The auto components and equipment sector continues to face a mixed environment, with some companies demonstrating resilience and growth, while others, including Z F Steering Gear (India) Ltd, experience pressure on earnings and valuations. The company’s current position at a 52-week low underscores the ongoing challenges within its operational and financial framework.
Conclusion
As of 30 Dec 2025, Z F Steering Gear (India) Ltd’s stock performance and financial indicators reflect a period of sustained weakness. The new 52-week low of Rs.735 highlights the extent of the decline over the past year, with profitability and growth metrics remaining under pressure. The company’s valuation discounts and limited institutional participation further illustrate the cautious market sentiment surrounding its shares.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
