Zodiac Clothing Faces Financial Struggles Amidst Mixed Performance Indicators

Zodiac Clothing Company has recently undergone a financial trend adjustment, reflecting significant challenges in its performance metrics for the quarter ending September 2025. The company's financial score has notably declined, indicating a tough period for the microcap firm within the garments and apparel industry.
Despite facing hurdles, there are some positive indicators. The debtors turnover ratio stands at a commendable 12.19 times, suggesting effective management of receivables. However, the company is grappling with several critical issues. The profit after tax for the quarter has dropped to Rs -11.82 crore, marking a decline of 28.7% compared to the previous four-quarter average. Additionally, the debt-equity ratio has reached a high of 0.62 times, which may raise concerns about financial leverage.

Other troubling metrics include a net sales figure of Rs 36.51 crore, the lowest recorded, and an operating profit to interest ratio of -2.45 times, indicating difficulties in covering interest expenses. The company's performance has also lagged behind the Sensex, with a year-to-date return of -25.62% compared to the Sensex's 7.98%. Over the past decade, Zodiac Clothing's stock has seen a significant decline of 62.28%, contrasting sharply with the Sensex's impressive growth of 229.45%. These trends highlight the ongoing challenges faced by the company in a competitive market.