Stock Price Movement and Market Context
On 29 Dec 2025, Zenith Fibres Ltd recorded its lowest price in the past year at Rs.57.71, down from its 52-week high of Rs.82.50. Despite a modest gain of 0.34% on the day, the stock remains well below key moving averages, trading above its 5-day moving average but below the 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates short-term resilience but sustained pressure in the medium to long term.
The stock has shown a slight recovery over the last three days, with a cumulative return of 1.72%, outperforming its sector by 0.38% during this period. However, this short-term gain contrasts with the broader downward trend observed over the past year.
Meanwhile, the Sensex opened flat but turned negative, trading at 84,810.13 points, down 0.27% from the previous close and remaining 1.59% below its 52-week high of 86,159.02. The benchmark index continues to trade above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish market environment that Zenith Fibres has not mirrored.
Financial Performance and Fundamental Metrics
Zenith Fibres Ltd’s financial indicators reveal ongoing difficulties. The company reported operating cash flow at its lowest annual level of Rs. -2.56 crores, reflecting cash outflows from core business activities. Net sales for the latest quarter also hit a low of Rs. 9.35 crores, underscoring subdued revenue generation.
The company’s profitability metrics remain weak. The average Return on Equity (ROE) stands at 3.52%, indicating limited profitability relative to shareholders’ funds. Additionally, the EBIT to interest coverage ratio averages a mere 0.15, highlighting challenges in servicing debt obligations effectively.
Over the past year, Zenith Fibres has experienced a 53.4% decline in profits, contributing to a total stock return of -26.54%. This performance starkly contrasts with the Sensex’s 7.78% gain over the same period, emphasising the stock’s underperformance relative to the broader market.
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Long-Term Trends and Sector Comparison
Zenith Fibres Ltd has consistently underperformed its benchmark indices over the last three years. The stock’s annual returns have lagged behind the BSE500 index in each of these periods, reflecting persistent challenges in maintaining competitive growth and profitability.
The Garments & Apparels sector, to which Zenith Fibres belongs, has generally shown more stable performance, with many peers maintaining stronger financial health and market valuations. Zenith Fibres’ current Mojo Score of 3.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 11 Nov 2024, further illustrate the cautious stance on the stock’s outlook based on fundamental and valuation metrics.
Market capitalisation grading at 4 indicates a mid-cap status, but the company’s financial health and valuation metrics suggest elevated risk compared to sector averages. The stock’s negative EBITDA and weak debt servicing capacity contribute to this assessment.
Shareholding Pattern and Market Position
The majority of Zenith Fibres Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company’s position within the Garments & Apparels sector remains challenged by its financial performance and valuation concerns.
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Summary of Key Financial and Market Indicators
To summarise, Zenith Fibres Ltd’s stock has declined to Rs.57.71, its lowest level in 52 weeks, reflecting a year-long return of -26.54% against a positive 7.78% return for the Sensex. The company’s financial metrics, including a low ROE of 3.52%, poor EBIT to interest coverage ratio of 0.15, and negative operating cash flows, highlight ongoing challenges in profitability and liquidity.
The stock’s valuation remains risky relative to historical averages, compounded by a 53.4% fall in profits over the past year. Despite a brief three-day gain, the overall trend remains subdued, with the stock trading below most key moving averages and continuing to underperform its sector and broader market indices.
These factors collectively contribute to the current Mojo Grade of Strong Sell, reflecting the company’s weak long-term fundamental strength and elevated risk profile within the Garments & Apparels sector.
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