Stock Price Movement and Market Context
On 28 Jan 2026, Zodiac Ventures Ltd’s shares fell by 1.14% to reach Rs.1.73, the lowest level in the past year. This decline contrasts sharply with the broader market, where the Sensex rose by 0.46% to close at 82,237.92 points, edging closer to its 52-week high of 86,159.02, just 4.77% away. The Commercial Services & Supplies sector, to which Zodiac Ventures belongs, underperformed with the stock lagging the sector by 2.63% today, while the Construction - Real Estate sector gained 2.43%.
Zodiac Ventures is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend. This technical positioning reflects the stock’s weak momentum and investor caution.
Financial Performance and Valuation Metrics
Over the past year, Zodiac Ventures has delivered a return of -86.61%, significantly underperforming the Sensex’s positive 8.33% return. Despite this steep decline in share price, the company’s profits have shown an 85% increase over the same period, resulting in a low PEG ratio of 0.1. However, this profit growth has not translated into positive market sentiment or price appreciation.
The company’s quarterly financials reveal subdued earnings with the PBDIT (Profit Before Depreciation, Interest and Taxes) at Rs.0.64 crore, the lowest recorded, and PBT (Profit Before Tax) excluding other income at Rs.0.11 crore. Earnings per share (EPS) also hit a low of Rs.0.04 in the latest quarter, underscoring limited profitability.
Zodiac Ventures’ return on capital employed (ROCE) stands at 5.7%, which, combined with an enterprise value to capital employed ratio of 0.5, suggests a valuation that is expensive relative to its capital base. Despite this, the stock trades at a discount compared to its peers’ historical valuations, reflecting the market’s cautious stance.
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Credit Profile and Debt Servicing
The company’s ability to service its debt remains constrained, with a high Debt to EBITDA ratio of 3.67 times. This elevated leverage ratio indicates that earnings before interest, taxes, depreciation and amortisation are insufficiently robust to comfortably cover debt obligations, which may weigh on financial flexibility.
Shareholding Pattern and Market Position
Zodiac Ventures’ majority shareholders are non-institutional, which may contribute to lower institutional support and liquidity in the stock. The company operates within the Commercial Services & Supplies sector, which has seen mixed performance, but Zodiac Ventures’ consistent underperformance against benchmarks such as the BSE500 over the last three years highlights ongoing challenges in market positioning.
Dividend Yield and Investor Returns
At the current price level, Zodiac Ventures offers a relatively high dividend yield of 5.68%, which stands out given the stock’s depressed valuation. This yield may reflect the company’s efforts to maintain shareholder returns despite subdued capital appreciation.
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Historical Performance and Market Comparison
Over the last five years, Zodiac Ventures has experienced a negative compound annual growth rate (CAGR) of -2.83% in operating profits, reflecting a decline in core earnings capacity. This weak long-term fundamental strength has contributed to the stock’s downgrade to a Mojo Grade of Strong Sell as of 17 Feb 2025, with a Mojo Score of 16.0, signalling significant caution.
Despite the stock’s steep decline from its 52-week high of Rs.14.80 to the current low of Rs.1.73, the company’s profit growth and dividend yield present a complex picture of financial metrics that have yet to translate into positive market momentum.
Sector and Market Dynamics
While mega-cap stocks have led the market rally, supporting the Sensex’s gains, smaller companies like Zodiac Ventures have struggled to keep pace. The stock’s consistent underperformance against the BSE500 index over the past three years further emphasises the challenges faced by the company in regaining investor confidence.
The broader market environment remains supportive, with the Sensex trading above its 200-day moving average and the 50-day moving average positioned above the 200-day average, indicating a generally positive trend for large-cap stocks. However, Zodiac Ventures’ position below all key moving averages highlights its divergence from this trend.
Summary of Key Metrics
- Current Price: Rs.1.73 (52-week low)
- 52-Week High: Rs.14.80
- 1-Year Return: -86.61%
- Sensex 1-Year Return: +8.33%
- Mojo Score: 16.0 (Strong Sell)
- Debt to EBITDA Ratio: 3.67 times
- ROCE: 5.7%
- Dividend Yield: 5.68%
- PBDIT (Quarterly): Rs.0.64 crore
- PBT excluding other income (Quarterly): Rs.0.11 crore
- EPS (Quarterly): Rs.0.04
The stock’s current valuation and financial indicators reflect a company facing significant headwinds, with limited signs of recovery in price performance despite some improvement in profitability metrics.
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