Stock Price Movement and Market Context
On 4 February 2026, Zodiac Ventures Ltd’s stock recorded a day change of -0.63%, closing near its lowest price in the past year. The 52-week high for the stock was ₹14.80, highlighting a steep depreciation of approximately 88.3% over the last twelve months. This contrasts sharply with the broader market, where the Sensex has gained 6.38% over the same period. The Sensex opened lower at 83,252.06 points, down 0.58%, and was trading marginally down by 0.11% at 83,643.94 points during the stock’s decline.
Zodiac Ventures’ stock currently trades above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a persistent downward trend over medium and long-term horizons. Despite this, the stock offers a relatively high dividend yield of 6.25% at the current price, which is notable given the prevailing market conditions.
Financial Performance and Valuation Metrics
The company’s financial metrics reveal several areas of concern. Over the past five years, Zodiac Ventures has experienced a negative compound annual growth rate (CAGR) of -2.83% in operating profits, indicating a contraction in core earnings. The latest quarterly results showed the lowest PBDIT (Profit Before Depreciation, Interest and Taxes) at ₹0.64 crore and PBT (Profit Before Tax) excluding other income at ₹0.11 crore. Earnings per share (EPS) for the quarter also hit a low of ₹0.04, underscoring the subdued profitability.
Return on Capital Employed (ROCE) stands at 5.7%, which is modest relative to industry standards. The company’s valuation appears expensive when considering its enterprise value to capital employed ratio of 0.5, despite trading at a discount compared to its peers’ historical averages. The Price/Earnings to Growth (PEG) ratio is notably low at 0.1, reflecting the disconnect between the stock price and the company’s profit growth, which has risen by 85% over the past year despite the stock’s negative return of -87.86%.
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Debt and Credit Metrics
Zodiac Ventures’ ability to service its debt remains limited, with a high Debt to EBITDA ratio of 3.67 times. This elevated leverage ratio suggests increased financial risk and pressure on cash flows. The company’s market capitalisation grade is rated 4, reflecting its relatively small size and limited market liquidity compared to larger peers.
Comparative Performance and Sector Positioning
Over the last three years, Zodiac Ventures has consistently underperformed the BSE500 index and its sector peers. The stock’s return of -87.86% in the past year is a stark contrast to the sector’s overall performance and the broader market’s modest gains. This persistent underperformance has contributed to the company’s current Mojo Score of 16.0 and a Mojo Grade of Strong Sell, as assigned on 17 February 2025.
The company’s shareholder base is predominantly non-institutional, which may influence trading volumes and stock price volatility. The Commercial Services & Supplies sector itself has seen mixed performance, with some companies maintaining stable growth while others face headwinds similar to Zodiac Ventures.
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Summary of Key Metrics
Zodiac Ventures Ltd’s current stock price of ₹1.74 represents a significant decline from its 52-week high of ₹14.80. The company’s financial indicators, including a negative CAGR in operating profits, low EPS, and a high debt burden, contribute to its challenging market position. Despite a high dividend yield of 6.25%, the stock’s valuation metrics and consistent underperformance relative to the Sensex and sector peers highlight ongoing concerns.
The Sensex itself remains near its 52-week high, trading at 83,643.94 points, just 3.01% below its peak of 86,159.02. This divergence between the broader market’s relative strength and Zodiac Ventures’ weakness underscores the stock’s isolated difficulties within the Commercial Services & Supplies sector.
Technical and Market Sentiment Indicators
From a technical perspective, the stock’s position below multiple moving averages suggests a bearish trend. The outperformance relative to the sector by 4.94% on the day of the new low may indicate short-term volatility but does not offset the longer-term downtrend. The company’s market cap grade of 4 and Mojo Grade of Strong Sell reflect the cautious stance adopted by market analysts.
In conclusion, Zodiac Ventures Ltd’s fall to its 52-week low is the result of a combination of subdued financial performance, high leverage, and persistent underperformance against benchmarks. While the stock offers a high dividend yield, the valuation and credit metrics present challenges that have weighed on investor sentiment and stock price levels.
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