Z F Steering Gear (India) Stock Falls to 52-Week Low of Rs.830

On 19 Nov 2025, Z F Steering Gear (India) recorded its lowest price in the past year at Rs.830. This new low comes after a period of consecutive declines, although the stock showed a slight gain following two days of falls. Despite this minor uptick, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.

In comparison, the Sensex index opened flat but later climbed by 334.70 points, closing at 84,978.48, a 0.36% increase. The Sensex is currently trading just 0.37% below its 52-week high of 85,290.06, supported by mega-cap stocks leading the market. The index is also positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a bullish trend for the broader market.

Over the last year, Z F Steering Gear (India) has underperformed significantly, with a total return of -45.28%, while the Sensex has delivered a positive return of 9.54%. The stock's 52-week high was Rs.1,635, highlighting the extent of the decline to the current low.

The financial metrics for Z F Steering Gear (India) reveal several areas of concern. The company’s Return on Capital Employed (ROCE) stands at 3.76%, reflecting limited profitability relative to the capital invested. This figure is notably low for the auto components sector, where efficient capital utilisation is critical.

Operating profit has shown a negative compound annual growth rate of -28.65% over the past five years, indicating a contraction in core earnings. Furthermore, the company has reported negative results for five consecutive quarters, with the latest quarterly Profit Before Tax (PBT) excluding other income at Rs. -0.85 crore, a decline of 211.5% compared to the average of the previous four quarters.

Net Profit After Tax (PAT) for the latest quarter was Rs. -0.39 crore, reflecting a fall of 112.3% relative to the prior four-quarter average. Interest expenses for the nine-month period stood at Rs. 6.26 crore, showing a growth of 52.68%, which adds pressure on the company’s earnings.

Despite the company’s size, domestic mutual funds hold no stake in Z F Steering Gear (India). Given that mutual funds typically conduct thorough research before investing, this absence may indicate reservations about the company’s current valuation or business outlook.

In terms of debt servicing, the company maintains a Debt to EBITDA ratio of 1.27 times, suggesting a manageable level of leverage. The Enterprise Value to Capital Employed ratio is approximately 1.5, which is considered fair when compared to peers in the auto components sector.

Profitability has also been under pressure, with profits falling by 66.3% over the past year. This decline has contributed to the stock trading at a discount relative to its peers’ historical valuations.

In summary, Z F Steering Gear (India) is currently trading at a significant discount to its 52-week high and below all major moving averages, reflecting a challenging period for the stock. The company’s financial indicators point to subdued profitability and declining earnings, which have contributed to the stock’s underperformance relative to the broader market and sector indices.

While the Sensex and the auto components sector have shown resilience and positive momentum, Z F Steering Gear (India) remains on a downward trajectory, with recent price action confirming the stock’s 52-week low at Rs.830.

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