Stock Price Movement and Market Context
On 4 December 2025, Z F Steering Gear (India) recorded an intraday low of Rs.795, marking its lowest price point in the last 52 weeks. The stock underperformed its sector by 3.66% on the day, with a day change of -1.83%. It also traded below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the Sensex opened lower by 119.25 points but recovered to close marginally higher at 85,131.17, just 1.21% shy of its 52-week high of 86,159.02. The benchmark index is supported by mega-cap stocks and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish market trend.
Comparative Performance Over One Year
Over the past year, Z F Steering Gear (India) has experienced a price decline of 47.30%, a stark contrast to the Sensex’s gain of 5.16% and the broader BSE500’s return of 2.27%. This underperformance highlights the challenges faced by the company relative to the overall market and its sector peers.
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Financial Metrics and Profitability Indicators
The company’s return on capital employed (ROCE) stands at 3.76%, indicating modest profitability relative to the total capital invested. This figure is notably low compared to typical industry standards, suggesting limited efficiency in generating returns from its capital base.
Operating profit has shown a negative compound annual growth rate of 28.65% over the last five years, reflecting a contraction in core earnings. Additionally, the company has reported negative results for five consecutive quarters, underscoring ongoing financial pressures.
Recent Profit and Loss Trends
Interest expenses for the nine-month period amount to Rs.6.26 crores, representing a growth rate of 52.68%. Profit before tax excluding other income for the latest quarter is at a loss of Rs.0.85 crores, a decline of 211.5% compared to the average of the previous four quarters. Net profit after tax for the latest six months is Rs.7.58 crores, reflecting a contraction of 36.36%.
Debt and Valuation Metrics
Despite the financial challenges, the company maintains a relatively low debt burden, with a Debt to EBITDA ratio of 1.27 times. This suggests a manageable level of leverage and an ability to service debt obligations without excessive strain.
The enterprise value to capital employed ratio is approximately 1.5, indicating a valuation that is fair relative to the capital invested in the business. This valuation is lower than the average historical valuations of its peers, signalling that the stock is trading at a discount within its sector.
Market Participation and Ownership
Domestic mutual funds currently hold no stake in Z F Steering Gear (India), which may reflect a cautious stance given the company’s recent financial performance and price trends. The absence of significant institutional ownership contrasts with the company’s size and market presence.
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Sector and Industry Context
Z F Steering Gear (India) operates within the Auto Components & Equipments sector, which has seen mixed performance in recent periods. While the broader market and mega-cap stocks have shown resilience, smaller companies in the sector have faced headwinds related to profitability and growth.
The stock’s 52-week high was Rs.1,635, more than double the current low price, illustrating the extent of the decline over the year. This wide range highlights the volatility experienced by the company’s shares and the challenges in maintaining price stability.
Summary of Key Challenges
The company’s financial data points to several areas of concern, including subdued profitability, shrinking operating profits, and consecutive quarters of negative results. Interest costs have risen significantly, and profit before tax has shown marked declines in recent quarters. These factors have contributed to the stock’s downward trajectory and its current position at a 52-week low.
Conclusion
Z F Steering Gear (India) has experienced a notable decline in its stock price, culminating in a 52-week low of Rs.795. This performance contrasts with the broader market’s positive trend and reflects ongoing financial pressures within the company. Key metrics such as ROCE, operating profit growth, and recent quarterly results illustrate the challenges faced by the business over the past year. The stock’s valuation relative to peers and its manageable debt levels provide context to its current market standing.
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