Recent Price Movement and Market Context
On 21 Jan 2026, Zodiac Ventures Ltd’s share price declined by 2.67% to reach Rs.1.78, the lowest level recorded in the past year. This drop extends a four-day losing streak during which the stock has shed 14.55% in value. The decline outpaced the sector’s underperformance, with the stock lagging the Commercial Services & Supplies sector by 1.31% on the day.
The broader market environment has also been challenging. The Sensex opened 385.82 points lower and traded at 81,767.27, down 0.5%. Notably, the Sensex has been on a three-week losing streak, falling 4.66% over that period. The index is currently trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some longer-term support. Additionally, the NIFTY MEDIA index also hit a 52-week low today, signalling sector-wide pressures.
Zodiac Ventures is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the persistent bearish momentum. Despite this, the stock offers a relatively high dividend yield of 5.35% at the current price, which stands out amid the prevailing weakness.
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Long-Term Performance and Valuation Metrics
Over the past year, Zodiac Ventures Ltd has delivered a total return of -86.49%, a stark contrast to the Sensex’s positive 7.81% gain during the same period. The stock’s 52-week high was Rs.14.80, highlighting the extent of the decline. This underperformance extends beyond the last year, with the company consistently lagging the BSE500 index in each of the past three annual periods.
The company’s long-term fundamental strength is rated weak, with a compound annual growth rate (CAGR) of -2.83% in operating profits over the last five years. This negative growth trend has contributed to the stock’s current valuation challenges.
Financially, Zodiac Ventures exhibits a high leverage profile, with a Debt to EBITDA ratio of 3.67 times, indicating a relatively low capacity to service its debt obligations. The company’s 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 the depressed share price, the stock trades at a discount compared to its peers’ average historical valuations. The company’s price-to-earnings-to-growth (PEG) ratio is 0.1, reflecting a disconnect between its profit growth and market valuation. Notably, profits have risen by 85% over the past year, even as the stock price has plummeted.
Quarterly Financial Results
The latest quarterly results for September 2025 reveal subdued earnings. The Profit Before Depreciation, Interest and Taxes (PBDIT) was recorded at Rs.0.64 crore, the lowest quarterly figure. Profit Before Tax excluding other income (PBT less OI) also hit a low of Rs.0.11 crore, while Earnings Per Share (EPS) stood at Rs.0.04, marking the lowest quarterly EPS in recent periods.
Shareholding and Corporate Developments
Promoter holding in Zodiac Ventures Ltd has decreased this quarter, now standing at 29.37%. This reduction in promoter stake may be viewed as a factor contributing to market sentiment and share price pressure.
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Summary of Key Metrics
Zodiac Ventures Ltd’s Mojo Score is 16.0, with a Mojo Grade of Strong Sell as of 17 Feb 2025, reflecting the company’s current risk profile and valuation concerns. The Market Cap Grade is 4, indicating a relatively modest market capitalisation within its sector. The stock’s consistent underperformance against benchmarks and peers, combined with weak growth and high leverage, underpin this rating.
The stock’s high dividend yield of 5.35% at the current price is notable, though it has not been sufficient to offset the broader negative price momentum. The company’s valuation metrics and financial results suggest that the stock is trading at a discount relative to its historical and peer valuations, but this is accompanied by ongoing challenges in profitability and capital structure.
Sector and Market Comparison
Within the Commercial Services & Supplies sector, Zodiac Ventures Ltd’s performance contrasts with broader market trends. While the Sensex and sector indices have experienced some volatility, the stock’s decline has been more pronounced. The sector itself has faced pressures, as evidenced by the NIFTY MEDIA index hitting a 52-week low today, but Zodiac Ventures’ underperformance is more acute.
The company’s trading below all major moving averages further highlights the prevailing bearish sentiment. This technical positioning, combined with fundamental weaknesses, has contributed to the stock’s fall to its lowest level in a year.
Conclusion
Zodiac Ventures Ltd’s stock reaching a 52-week low of Rs.1.78 reflects a combination of weak long-term growth, high leverage, subdued quarterly earnings, and reduced promoter holding. The stock’s significant underperformance relative to the Sensex and its sector peers underscores the challenges faced by the company. While the current dividend yield remains relatively high, the overall valuation and financial metrics indicate a cautious outlook for the stock’s near-term performance.
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