Zodiac Clothing Company Ltd Stock Hits 52-Week Low Amidst Continued Downtrend

Stock Performance and Market Context

On 1 Feb 2026, Zodiac Clothing Company Ltd opened with a gap down of 7.73%, hitting an intraday low of Rs.75.65, which represents its lowest price point in the past year. This decline was accompanied by a day’s loss of 2.41%, underperforming the Garments & Apparels sector by 3.39%. The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum.

In contrast, the Sensex opened 119.19 points higher and traded at 82,538.76, up 0.33%, remaining within 4.39% of its 52-week high of 86,159.02. Mega-cap stocks led the market gains, while Zodiac Clothing’s performance diverged notably from the broader market trend.

Long-Term Price and Returns Analysis

Over the last 12 months, Zodiac Clothing Company Ltd’s stock has depreciated by 30.76%, a stark contrast to the Sensex’s positive return of 7.53% over the same period. The stock’s 52-week high was Rs.126, underscoring the extent of the decline to the current low. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the past three years, one year, and three months, indicating a prolonged period of subdued investor confidence and market valuation.

Financial Health and Profitability Metrics

Zodiac Clothing Company Ltd’s financial indicators reveal ongoing challenges. The company has reported operating losses, contributing to a weak long-term fundamental strength assessment. Over the past five years, operating profit has declined at an annualised rate of 0.67%, reflecting subdued growth in core earnings.

The company’s ability to service its debt remains constrained, with an average EBIT to interest ratio of -4.97, indicating that earnings before interest and tax are insufficient to cover interest expenses. The debt-equity ratio at half-year stood at 0.62 times, the highest recorded, signalling increased leverage.

Quarterly results have been negative for two consecutive quarters, with the latest reported PAT at Rs. -11.82 crores, a decline of 28.7% compared to the previous four-quarter average. Operating profit to interest ratio for the quarter was at a low of -2.45 times, further highlighting the pressure on earnings relative to debt servicing costs.

Valuation and Risk Considerations

The stock is currently trading at valuations that are considered risky relative to its historical averages. Despite the negative price performance of -30.76% over the past year, the company’s profits have increased by 14.1% during the same period, suggesting a disconnect between earnings growth and market valuation.

However, the persistent negative EBITDA and weak profitability ratios contribute to the cautious stance reflected in the stock’s Mojo Score of 1.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 7 Feb 2025. The Market Cap Grade stands at 4, indicating a relatively modest market capitalisation within its sector.

Shareholding and Sectoral Position

The majority shareholding in Zodiac Clothing Company Ltd remains with promoters, maintaining a stable ownership structure. The company operates within the Garments & Apparels industry and sector, which has seen mixed performance in recent months. Despite the sector’s overall resilience, Zodiac’s stock has not mirrored this trend, reflecting company-specific factors influencing its valuation.

While the broader market and mega-cap stocks have shown gains, Zodiac’s share price continues to reflect the challenges faced by the company in maintaining profitability and growth momentum.

Summary of Key Metrics

To summarise, Zodiac Clothing Company Ltd’s stock has reached a 52-week low of Rs.75.65, following a day of significant decline and underperformance relative to its sector and the Sensex. The company’s financial indicators, including operating losses, negative PAT, and weak debt servicing capacity, underpin the cautious market sentiment. The stock’s valuation metrics and recent downgrade to a Strong Sell grade further illustrate the challenges faced by the company in the current market environment.

Investors and market participants will note the divergence between the company’s modest profit growth and the sharp decline in share price, highlighting the complex dynamics at play in the valuation of this Garments & Apparels sector stock.

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