Zenith Exports Limited (ZENITHEXPO) AI Stock Analysis

• Market Cap: ₹1.02B
• Dividend Yield: N/A
• Average Volume (3M): 45.00
• Price to Earnings (P/E): 172.5
• Beta (1Y): 0.60
• Revenue Growth: 8.45%
• EPS Growth: N/A
• Country: IN
• Employees: 193
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.32
• Shares Outstanding: 5,396,250
• 10 Day Avg. Volume: 16
• 30 Day Avg. Volume: 45
• PEG Ratio: 0.15
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 1.65
• P/FCF Ratio: -20.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹194.00 ▼(-6.75% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

Zenith Exports Limited's overall stock score is primarily influenced by its mixed financial performance and technical analysis. The strong balance sheet is offset by operational inefficiencies and cash flow challenges. Technical indicators suggest a potential downtrend, while the valuation is moderate. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong balance sheet

An equity ratio ~81% and D/E of 0.09 indicate durable financial stability and low leverage. This gives management flexibility to fund capex, absorb demand shocks, and support working capital without heavy reliance on external debt, strengthening medium-term resilience.

Improving net profit margin

An improving net margin, while modest, signals the business is beginning to convert revenues into retained earnings. If sustained, this supports internal financing for reinvestment, reduces dependence on external funding, and reflects potential operational or pricing improvements.

Moderate gross profitability

A ~19.7% gross margin provides structural headroom to cover SG&A and absorb input cost volatility typical in apparel manufacturing. With disciplined cost control, this margin level can underpin durable operating profitability as scale or efficiency improves.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows indicate the company struggles to turn accounting profits into cash. Over months, this constrains liquidity, limits reinvestment and working capital flexibility, and may force reliance on financing or asset sales to fund operations.

Operational inefficiencies

Negative EBIT margins show core operations are not consistently profitable before financing and taxes. This structural weakness reduces earnings power, limits ability to scale profitably, and means gross margin advantage is being eroded by operating costs unless addressed.

Inconsistent revenue trends

A revenue decline undermines scale economics and makes margin recovery harder. Over a multi-month horizon, shrinking top-line can indicate demand weakness or market share erosion, pressuring fixed-cost absorption and constraining long-term growth and investment plans.

Zenith Exports Limited Business Overview & Revenue Model

Company Description

Zenith Exports Limited designs, manufactures, and sells fabrics to fashion and home furnishing industries in India and internationally. It offers a range of silk, velvet, and embroidery fabrics, as well as weaving products. The company also provides industrial leather hand gloves, silk fabrics, and made-ups. It also exports its products. Zenith Exports Limited was incorporated in 1969 and is headquartered in Kolkata, India.

How the Company Makes Money

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Zenith Exports Limited Financial Statement Overview

Summary

Zenith Exports Limited exhibits a mixed financial performance. The balance sheet is strong with high equity and low leverage, scoring 70. However, the income statement and cash flow scores are lower at 45 and 40 respectively, due to operational inefficiencies and cash flow challenges.

Income Statement

Zenith Exports Limited has shown inconsistent revenue trends with a decline in revenue from 2024 to 2025. The gross profit margin for 2025 is approximately 19.7%, indicating moderate profitability. However, the company has been struggling with negative EBIT margins, reflecting operational inefficiencies. The net profit margin improved to 2.37% in 2025, but the overall profitability remains low.

Balance Sheet

The company maintains a strong equity position with an equity ratio of approximately 81.2% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.09, suggesting minimal leverage risk. Return on equity improved to 2.09% in 2025, but remains modest.

Cash Flow

Zenith Exports Limited faces challenges in generating positive cash flow, with negative operating and free cash flows in 2025. The free cash flow to net income ratio is negative, indicating cash flow issues despite positive net income. The operating cash flow to net income ratio is also negative, highlighting inefficiencies in cash generation from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	768.70M	721.00M	785.14M	600.84M	881.95M	484.77M
Gross Profit	302.30M	142.00M	131.93M	134.29M	165.96M	114.33M
EBITDA	94.40M	40.60M	29.17M	43.74M	38.55M	13.18M
Net Income	59.10M	17.10M	3.03M	15.78M	10.07M	-12.97M
Balance Sheet
Total Assets	973.90M	1.01B	958.99M	1.00B	1.02B	958.68M
Cash, Cash Equivalents and Short-Term Investments	228.70M	298.50M	250.54M	284.43M	199.48M	286.42M
Total Debt	30.50M	77.60M	55.38M	94.74M	138.09M	77.91M
Total Liabilities	130.70M	189.10M	156.44M	202.83M	233.56M	186.90M
Stockholders Equity	843.20M	819.70M	802.50M	797.28M	781.61M	771.78M
Cash Flow
Free Cash Flow	12.30M	-59.30M	-71.56M	190.65M	-154.34M	23.81M
Operating Cash Flow	23.20M	-30.30M	-65.69M	192.31M	-149.79M	25.17M
Investing Cash Flow	73.50M	-39.80M	170.34M	-155.53M	114.72M	11.80M
Financing Cash Flow	-50.90M	13.80M	-48.42M	-49.85M	51.36M	-15.19M

Zenith Exports Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 208.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZENITHEXPO, the sentiment is Negative. The current price of 208.05 is above the 20-day moving average (MA) of 188.22, above the 50-day MA of 198.28, and below the 200-day MA of 234.17, indicating a neutral trend. The MACD of -4.16 indicates Negative momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 76.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZENITHEXPO.

Zenith Exports Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BHANDARI	59 Neutral	₹1.11B	10.89	―	0.51%	2.92%	-0.09%
LOYALTEX	56 Neutral	₹953.17M	-1.31	―	―	-30.97%	80.99%
ZENITHEXPO	55 Neutral	₹1.02B	172.50	―	―	8.45%	―
SURYALAXMI	55 Neutral	₹993.86M	53.55	―	―	4.60%	226.64%
SELMC	42 Neutral	₹960.91M	-0.62	―	―	―	―

Zenith Exports Limited Corporate Events

Zenith Exports Faces NSE and BSE Penalties Over Board Governance Gap

Zenith Exports Limited has disclosed that both the National Stock Exchange of India and BSE Limited have levied penalties of Rs. 3,95,300 each, including GST, for alleged non-compliance with Regulation 17(1) of the SEBI Listing Obligations and Disclosure Requirements during the quarter ended 31 December 2025. The company stated that the penalties, related to board-level independent director requirements, will have no material financial or operational impact, and it is seeking suitable candidates to fill the vacancy while also pursuing waiver requests for the fines from both exchanges.

Management acknowledged that a prior shareholder vote defeated a resolution to appoint an independent director, contributing to the current governance shortfall. By actively searching for a new independent director and contesting the penalties, Zenith Exports aims to restore full compliance with listing regulations and mitigate any reputational or regulatory risks in the eyes of shareholders and the market.

Zenith Exports Closes Trading Window Ahead of December Quarter Results

Zenith Exports Limited has announced the closure of its trading window for directors, key managerial personnel, designated employees and connected persons from 1 January 2026 until 48 hours after the publication of its unaudited financial results for the quarter and nine months ended 31 December 2025. The move is in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, underscoring its emphasis on regulatory compliance and safeguarding against insider trading risks ahead of its upcoming financial disclosures, with the exact board meeting date for approving results to be communicated later.