Zodiac Energy Ltd. (ZODIAC) AI Stock Analysis

• Market Cap: ₹6.70B
• Dividend Yield: N/A
• Average Volume (3M): 10.50K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 1.48
• Revenue Growth: 59.55%
• EPS Growth: 57.46%
• Country: IN
• Employees: 111
• Sector: Energy
• Sector Strength: 43
• Industry: Construction Materials
• EPS (TTM): 1.78
• Shares Outstanding: 15,123,690
• 10 Day Avg. Volume: 7,318
• 30 Day Avg. Volume: 10,496
• PEG Ratio: 0.39
• Price to Book (P/B): 6.28
• Price to Sales (P/S): 1.49
• P/FCF Ratio: -4.61
• 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: ₹494.00
• Price Target Upside: 11.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹494.00 ▲(11.55% Upside)

The overall score reflects strong revenue growth and operational efficiency balanced by significant risks in cash flow management and high valuations. The technical analysis indicates weak momentum, contributing to a cautious outlook.

Zodiac Energy Ltd. Business Overview & Revenue Model

Company Description

Zodiac Energy Ltd. (ZODIAC) is an Indian company operating in the renewable energy sector, primarily focusing on the design, engineering, installation, and maintenance of solar power systems. The company provides comprehensive solutions for solar power projects, catering to both residential and commercial clients. Its services include rooftop solar installations, solar power plants, and energy efficiency solutions, making it a key player in promoting sustainable energy practices in India.

How the Company Makes Money

Zodiac Energy Ltd. generates revenue through several key channels. The primary source of income is the sale and installation of solar power systems, including both rooftop and large-scale solar power plants. The company offers end-to-end services, from initial consultation and design to installation and ongoing maintenance, allowing it to capture value across the project lifecycle. Additionally, Zodiac may earn revenue from government incentives and subsidies related to renewable energy projects. Strategic partnerships with technology providers and energy companies may also contribute to its revenue streams by enhancing service offerings and expanding market reach.

Zodiac Energy Ltd. Financial Statement Overview

Summary

Zodiac Energy Ltd. demonstrates strong revenue growth and operational efficiency with improved gross profit margins. However, profitability is hindered by low net profit margins and cash flow issues, including negative free cash flow, posing risks to financial stability and future growth.

Income Statement

Zodiac Energy Ltd. has demonstrated robust revenue growth with a significant increase from previous years, particularly from 2024 to 2025. The gross profit margin has improved, indicating efficient cost management. However, the net profit margin remains relatively low, signaling potential issues in controlling operating expenses or financial costs. The EBIT and EBITDA margins reflect a stable operational efficiency, but there is room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has increased significantly, reflecting higher financial leverage, which may pose a risk if not managed properly. Despite this, the return on equity (ROE) has improved, indicating effective utilization of shareholders' funds. The equity ratio has declined, suggesting a lower proportion of assets funded by equity, which might affect financial stability.

Cash Flow

Zodiac Energy Ltd. faces challenges in cash flow management, as evidenced by negative free cash flow and operating cash flow. The free cash flow to net income ratio is concerning, indicating that the company is not generating sufficient cash from its operations. This could impact future investment and growth opportunities if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.08B	4.08B	2.20B	1.38B	1.43B	1.00B
Gross Profit	622.21M	699.98M	241.73M	116.37M	121.08M	104.78M
EBITDA	365.21M	370.37M	199.04M	83.37M	98.51M	74.20M
Net Income	199.70M	199.70M	109.72M	31.89M	54.60M	44.16M
Balance Sheet
Total Assets	3.02B	3.02B	1.16B	947.54M	791.63M	558.36M
Cash, Cash Equivalents and Short-Term Investments	180.78M	180.78M	15.71M	55.71M	34.04M	25.55M
Total Debt	1.75B	1.75B	408.12M	459.20M	177.52M	134.97M
Total Liabilities	2.06B	2.06B	681.05M	587.04M	462.51M	284.30M
Stockholders Equity	965.64M	965.64M	475.74M	360.50M	329.12M	274.06M
Cash Flow
Free Cash Flow	0.00	-1.31B	137.50M	-260.44M	-9.04M	-58.66M
Operating Cash Flow	0.00	-488.41M	159.73M	-259.92M	8.35M	-48.59M
Investing Cash Flow	0.00	-1.05B	-56.09M	-33.89M	-39.99M	-17.82M
Financing Cash Flow	0.00	1.53B	-98.26M	281.68M	45.34M	67.30M

Zodiac Energy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 442.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZODIAC, the sentiment is Negative. The current price of 442.85 is below the 20-day moving average (MA) of 449.49, below the 50-day MA of 466.44, and below the 200-day MA of 462.42, indicating a bearish trend. The MACD of -9.74 indicates Positive momentum. The RSI at 31.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZODIAC.

Zodiac Energy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEBELSOLAR	65 Neutral	₹60.09B	30.20		―	397.23%	―
SWELECTES	64 Neutral	₹10.07B	79.94		0.45%	101.89%	-79.68%
ZODIAC	61 Neutral	₹6.70B	33.54		―	59.55%	57.46%
Sector *	56 Neutral	C$4.17B	2.02	16.25%	5.62%	10.63%	-50.60%
URJA	52 Neutral	₹7.04B	527.17		―	66.84%	-46.64%

Zodiac Energy Ltd. Corporate Events

Zodiac Energy Ltd. Clarifies Misreported Penalty Figures

Zodiac Energy Ltd. has issued a clarification regarding a news article published by Fundsmap Private Limited on its platform ScoutQuest, which inaccurately reported penalties imposed by UGVCL on the company. The article incorrectly stated the penalties as Rs. 64.96 Crore and Rs. 92.22 Crore, whereas the actual amounts are Rs. 64.96 Lakhs and Rs. 92.22 Lakhs. Zodiac Energy Ltd. plans to contest the penalties and has requested the removal of the incorrect article.