Recent Price Movement and Market Context
On 9 December 2025, Z F Steering Gear (India) opened with a gap down of 2.71%, touching an intraday low of Rs.740.1, which represents the lowest price level for the stock in the past year. This movement came alongside a day change of -1.28%, aligning with the broader sector's performance. Over the last four trading days, the stock has declined by 8.86%, signalling a persistent negative momentum.
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 a bearish trend across short, medium, and long-term timeframes.
Meanwhile, the broader market has experienced a decline, with the Sensex falling by 277.23 points to close at 84,465.64, down 0.75% on the day. Despite this, the Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, suggesting a generally bullish market environment contrasting with the stock's performance.
Long-Term Performance and Valuation Metrics
Over the past year, Z F Steering Gear (India) has underperformed significantly, with a total return of -49.93%, compared to the Sensex's positive return of 3.63% during the same period. The stock's 52-week high was Rs.1,635, highlighting the extent of the decline to the current low.
From a valuation perspective, the company shows a Return on Capital Employed (ROCE) of 3.76%, which is relatively low and indicates limited profitability relative to the capital invested. The enterprise value to capital employed ratio stands at 1.4, suggesting the stock is trading at a discount compared to its peers' historical valuations.
Despite the challenges, the company maintains a manageable debt profile, with a Debt to EBITDA ratio of 1.27 times, reflecting a capacity to service its debt obligations.
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Financial Performance Trends
The company’s operating profit has shown a decline at an annual rate of 28.65% over the last five years, reflecting subdued growth in core earnings. Furthermore, Z F Steering Gear (India) has reported negative results for five consecutive quarters, with quarterly profit before tax (excluding other income) at Rs.-0.85 crore, down by 211.5% compared to the previous four-quarter average.
Net profit after tax for the latest quarter stood at Rs.-0.39 crore, representing a fall of 112.3% relative to the prior four-quarter average. Interest expenses for the nine-month period have increased by 52.68%, reaching Rs.6.26 crore, which may be a factor weighing on profitability.
These figures highlight ongoing pressures on the company’s earnings and cash flow generation capabilities.
Shareholding and Market Position
Despite the company’s size, domestic mutual funds hold no stake in Z F Steering Gear (India), which may reflect a cautious stance from institutional investors. This absence of mutual fund participation could be indicative of limited confidence in the stock’s current valuation or business outlook.
In comparison to the broader BSE500 index, which has recorded a marginal negative return of 0.22% over the past year, Z F Steering Gear (India)’s performance has been notably weaker, underscoring its relative underperformance within the market.
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Sector and Industry Context
Z F Steering Gear (India) operates within the Auto Components & Equipments sector, which has experienced mixed performance amid broader market fluctuations. While the Sensex has maintained a generally bullish stance, the stock’s decline contrasts with the sector’s relative stability on the day of the new low.
The company’s current market capitalisation grade is modest, reflecting its mid-cap status and the challenges it faces in regaining investor confidence.
Given the stock’s position below all major moving averages and its recent price action, it remains a focal point for market participants monitoring the auto components space.
Summary of Key Metrics
Z F Steering Gear (India) has recorded a 52-week low of Rs.740.1, with a year-to-date return of -49.93%. The company’s ROCE stands at 3.76%, while its Debt to EBITDA ratio is 1.27 times. Operating profit has declined at an annual rate of 28.65% over five years, and the company has reported negative quarterly results for five consecutive periods. Interest expenses have risen by over 50% in the recent nine months, and net profit after tax has fallen by more than 100% compared to recent averages.
These factors collectively illustrate the challenges faced by Z F Steering Gear (India) in the current market environment.
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