Stock Performance and Market Context
On 19 Jan 2026, Zodiac Clothing Company Ltd’s share price touched an intraday low of Rs.79.92, representing a 3.24% drop for the day and a 2.74% decline compared to the previous close. This marks the lowest price level for the stock in the past 52 weeks, down from its high of Rs.126. The stock has been on a downward trajectory for the last two consecutive sessions, delivering a cumulative return of -4.5% over this period.
The stock’s performance today notably lagged its sector, underperforming the Garments & Apparels segment by 0.87%. Furthermore, Zodiac Clothing is trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling sustained bearish momentum.
In contrast, the broader market benchmark, the Sensex, experienced a decline of 0.66% to close at 83,017.08 points, down 477.41 points from its flat opening. Despite this, the Sensex remains within 3.78% of its 52-week high of 86,159.02. However, the index has been on a three-week losing streak, shedding 3.2% in that span, reflecting a cautious market environment.
Financial and Operational Indicators
Zodiac Clothing Company Ltd’s financial metrics continue to reflect pressures. The company has reported negative results for two consecutive quarters, with the latest quarterly PAT standing at a loss of Rs.11.82 crores, a decline of 28.7% compared to the average of the previous four quarters. Operating profit growth has been subdued, registering an annualised contraction of 0.67% over the last five years.
Debt metrics also raise concerns. The company’s debt-to-equity ratio at the half-year mark reached 0.62 times, the highest recorded level, indicating increased leverage. The EBIT to interest coverage ratio remains weak, averaging -4.97, with the latest quarter’s operating profit to interest ratio at a low of -2.45 times. These figures highlight challenges in servicing debt obligations effectively.
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Valuation and Risk Profile
The stock’s valuation metrics indicate elevated risk relative to its historical averages. Despite a 14.1% rise in profits over the past year, the share price has declined by 32.66%, underperforming the Sensex, which gained 8.35% over the same period. This divergence points to market scepticism regarding the company’s growth prospects and financial stability.
Over the longer term, Zodiac Clothing has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. The company’s Mojo Score currently stands at 1.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 7 Feb 2025. The Market Cap Grade is rated 4, reflecting concerns about the company’s market valuation relative to its fundamentals.
Shareholding and Sector Position
Zodiac Clothing Company Ltd operates within the Garments & Apparels industry, a sector that has faced varied headwinds in recent times. The majority shareholding remains with promoters, maintaining a stable ownership structure despite the stock’s recent performance.
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Summary of Key Metrics
To summarise, Zodiac Clothing Company Ltd’s stock has reached a new 52-week low of Rs.79.92, reflecting a sustained decline amid weak financial results and challenging market conditions. The company’s operating profit growth has been negative over the past five years, and recent quarters have seen losses at the PAT level. Elevated debt levels and poor interest coverage ratios further compound the risk profile.
The stock’s underperformance relative to the Sensex and its sector, combined with a Strong Sell Mojo Grade, underscores the cautious stance reflected in market pricing. Trading below all major moving averages, the share price continues to reflect the company’s current financial and valuation challenges.
Market Environment
The broader market backdrop remains subdued, with the Sensex on a three-week losing streak and trading below its 50-day moving average, although the 50DMA remains above the 200DMA. This mixed technical picture adds to the cautious sentiment prevailing in the market, particularly for stocks facing fundamental headwinds.
Conclusion
Zodiac Clothing Company Ltd’s recent fall to its 52-week low is a reflection of multiple factors including subdued profitability, increased leverage, and valuation pressures. The stock’s performance relative to its sector and the broader market highlights the challenges faced by the company in maintaining investor confidence amid a difficult operating environment.
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