On 18 Nov 2025, Z F Steering Gear (India) touched an intraday high of Rs.871.95, representing a 2.46% increase during the session, but ultimately closed at the new low of Rs.845.5. This price level is notably below the stock’s 52-week high of Rs.1,635, indicating a substantial depreciation over the past year. The stock’s performance contrasts sharply with the broader market, as the Sensex, despite a volatile session, remains close to its 52-week high of 85,290.06, currently trading at 84,863.52, down marginally by 0.1%.
Over the last year, Z F Steering Gear (India) has generated a return of -45.87%, significantly underperforming the Sensex’s 9.74% gain and the BSE500’s 8.57% return. The stock’s decline has been accompanied by a drop in profitability and operational metrics, which have contributed to the subdued market sentiment.
The company’s financial indicators reveal a Return on Capital Employed (ROCE) of 3.76%, reflecting limited profitability relative to the capital invested. This figure is low compared to industry standards and suggests challenges in generating efficient returns. Furthermore, the operating profit has shown a negative compound annual growth rate of -28.65% over the past five years, indicating a contraction in core earnings.
Recent quarterly results have also been unfavourable, with the company reporting negative earnings for five consecutive quarters. The Profit Before Tax excluding other income (PBT less OI) for the latest quarter stands at Rs. -0.85 crore, a decline of 211.5% compared to the average of the previous four quarters. Similarly, the Profit After Tax (PAT) for the quarter is Rs. -0.39 crore, down by 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 exert additional pressure on net profitability.
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Despite the company’s size, domestic mutual funds hold no stake in Z F Steering Gear (India), which may reflect a cautious stance given the current financial profile. The stock’s valuation metrics indicate a fair assessment relative to capital employed, with an Enterprise Value to Capital Employed ratio of 1.5 and a Debt to EBITDA ratio of 1.27 times, suggesting manageable leverage levels.
Trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, the stock’s technical position remains weak. The recent day’s performance saw the stock outperform its sector by 1.32%, yet this was insufficient to reverse the prevailing downtrend. The sector itself, Auto Components & Equipments, has experienced mixed movements, with the broader market showing resilience.
Over the past year, the company’s profits have contracted by 66.3%, further underscoring the challenges faced in maintaining earnings growth. This decline in profitability, combined with the stock’s price performance, highlights the difficulties encountered by Z F Steering Gear (India) in the current market environment.
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In summary, Z F Steering Gear (India) is currently positioned at a significant low point in its stock price cycle, reflecting a combination of subdued financial performance and market pressures. The company’s low ROCE, declining operating profits, and consecutive negative quarterly results have contributed to the stock’s underperformance relative to the broader market indices. While the stock trades at a discount compared to its peers’ historical valuations, the prevailing financial data indicates ongoing challenges in profitability and growth.
Market participants will note that the Sensex continues to trade above its 50-day moving average, with the 50 DMA positioned above the 200 DMA, signalling a generally bullish trend in the broader market. This contrasts with the technical and fundamental position of Z F Steering Gear (India), which remains under pressure.
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