Recent Price Movement and Market Context
On 27 Nov 2025, Zodiac Ventures’ share price touched Rs.1.99, its lowest level in the past year. This represents a decline of 4.78% on the day, underperforming its sector by approximately 4.75%. Over the last five trading days, the stock has recorded a cumulative return of -19.76%, indicating persistent selling pressure. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical setup.
In contrast, the broader market has shown resilience. The Sensex opened 135.54 points higher and is trading at 85,804.35, marking a new 52-week high. The index has gained 3.11% over the past three weeks, supported by strong performances from mega-cap stocks. The Sensex is also positioned above its 50-day moving average, which itself is above the 200-day moving average, indicating a bullish trend for the benchmark.
Long-Term Performance and Valuation Metrics
Zodiac Ventures’ one-year performance stands at -86.19%, a stark contrast to the Sensex’s 6.99% gain over the same period. The stock’s 52-week high was Rs.15.50, highlighting the extent of the decline. Over the last five years, the company’s operating profits have shown a compound annual growth rate (CAGR) of -2.83%, reflecting subdued earnings growth.
The company’s return on capital employed (ROCE) is recorded at 5.7%, while its enterprise value to capital employed ratio is 0.6, suggesting a valuation that is relatively expensive compared to its capital base. Despite this, the stock trades at a discount relative to its peers’ average historical valuations.
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Financial Results and Profitability
The company’s quarterly performance reveals subdued profitability. The Profit Before Depreciation, Interest and Taxes (PBDIT) for the latest quarter stands at Rs.0.64 crore, the lowest recorded in recent periods. Profit Before Tax excluding other income (PBT less OI) is at Rs.0.11 crore, also at a low point. Earnings per share (EPS) for the quarter is Rs.0.04, reflecting minimal earnings generation.
Despite the challenging earnings environment, Zodiac Ventures offers a dividend yield of 4.78% at the current price level, which is relatively high given the stock’s valuation and recent price performance.
Debt and Capital Structure Considerations
The company’s debt servicing capacity is constrained, with a Debt to EBITDA ratio of 3.67 times. This indicates a relatively high level of leverage compared to earnings before interest, taxes, depreciation and amortisation. Such leverage metrics may contribute to the cautious market sentiment surrounding the stock.
Shareholding and Promoter Activity
Promoter holding in Zodiac Ventures has declined in the most recent quarter, now standing at 29.37%. This reduction in promoter stake may be viewed as a factor influencing market perceptions of the company’s prospects.
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Comparative Performance and Market Position
Over the past three years, Zodiac Ventures has consistently underperformed the BSE500 index. The stock’s returns have lagged behind the benchmark in each of the last three annual periods, underscoring ongoing challenges in regaining market traction. While profits have risen by 85% over the past year, this has not translated into positive stock returns, with the price reflecting a significant contraction.
The company operates within the Commercial Services & Supplies sector, which has seen mixed performance relative to broader market indices. Zodiac Ventures’ current market capitalisation grade is modest, reflecting its micro-cap status and the prevailing market valuation.
Summary of Key Metrics
To summarise, Zodiac Ventures’ stock price has declined to Rs.1.99, its lowest level in 52 weeks, following a five-day losing streak and a near 20% drop in that period. The stock trades below all major moving averages, signalling a bearish trend. The company’s financial indicators show limited earnings growth, constrained profitability, and elevated leverage. Promoter shareholding has decreased recently, and the stock has underperformed key market benchmarks over multiple years.
Meanwhile, the broader market environment remains positive, with the Sensex reaching new highs and demonstrating bullish momentum. This divergence highlights the specific challenges faced by Zodiac Ventures within its sector and market segment.
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