Stock Price Movement and Market Context
On 18 Dec 2025, Z F Steering Gear (India) recorded its lowest price in the past year at Rs.736.2. This level represents a substantial drop from its 52-week high of Rs.1,599.55, indicating a decline of over 50% within the last twelve months. Despite the broader market showing resilience, with the Sensex trading near its 52-week high and gaining 0.05% on the day, Z F Steering Gear (India) has underperformed considerably.
The stock outperformed its sector by 0.77% on the day it hit this low, showing a slight recovery after four consecutive days of decline. However, it remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling persistent weakness in price momentum.
Financial Performance and Profitability Metrics
Over the past year, Z F Steering Gear (India) has delivered a return of approximately -52.03%, contrasting sharply with the Sensex’s positive return of 5.51% over the same period. The company’s long-term growth trajectory has also been subdued, with operating profit showing an annualised decline of 28.65% over the last five years.
Return on Capital Employed (ROCE) stands at a modest 3.76%, indicating limited profitability relative to the capital invested. This figure suggests that the company has generated relatively low returns on its equity and debt capital, which may be a factor in the stock’s subdued performance.
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Quarterly Results and Earnings Trends
The company has reported negative results for five consecutive quarters, reflecting ongoing challenges in profitability. The Profit Before Tax excluding other income (PBT less OI) for the most recent quarter was Rs.-0.85 crore, representing a decline of 211.5% compared to the average of the previous four quarters. Similarly, the Profit After Tax (PAT) for the quarter was Rs.-0.39 crore, down by 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 may have contributed to pressure on earnings. Despite these factors, the company maintains a relatively low Debt to EBITDA ratio of 1.27 times, indicating a manageable debt servicing capacity.
Valuation and Market Perception
Z F Steering Gear (India) is trading at a discount compared to its peers’ historical valuations, with an Enterprise Value to Capital Employed ratio of approximately 1.4. The company’s ROCE of 1.7 further suggests a fair valuation in the context of its capital base. However, the stock’s performance has lagged behind the broader BSE500 index over the last three years, one year, and three months, highlighting persistent underperformance.
Domestic mutual funds currently hold no stake in the company, which may reflect a cautious stance given the stock’s recent trends and financial metrics.
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Industry and Sector Comparison
Z F Steering Gear (India) operates within the Auto Components & Equipments sector, which has seen mixed performance in recent times. While the broader market, including mega-cap stocks, has shown resilience with the Sensex trading above its 50-day moving average, Z F Steering Gear (India) remains below all key moving averages. This divergence highlights the stock’s relative weakness within its sector and the wider market.
The company’s subdued financial indicators and stock price performance contrast with the overall market environment, where the Sensex is only 1.84% away from its 52-week high of 86,159.02 points.
Summary of Key Financial Indicators
To summarise, Z F Steering Gear (India) has experienced a notable decline in its stock price, reaching Rs.736.2 as its 52-week low. The company’s financial data reveals a challenging period marked by declining operating profits, negative quarterly earnings, and modest returns on capital. Despite a manageable debt profile, the stock’s valuation and performance metrics indicate ongoing pressures relative to its peers and the broader market.
These factors collectively contribute to the current market assessment of the stock and its position within the Auto Components & Equipments sector.
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