Zodiac Clothing Company Limited (ZODIACLOTH) AI Stock Analysis

• Market Cap: ₹2.13B
• Dividend Yield: N/A
• Average Volume (3M): 2.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: 4.96%
• EPS Growth: 14.10%
• Country: IN
• Employees: 1,196
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -4.54
• Shares Outstanding: 25,993,717
• 10 Day Avg. Volume: 425
• 30 Day Avg. Volume: 2,659
• PEG Ratio: -2.71
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.32
• P/FCF Ratio: -10.95
• 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: 42 Neutral
• Price Target: ₹79.00 ▼(-6.51% Downside)

Zodiac Clothing Company Limited's stock is currently rated low due to significant financial challenges, including declining revenues and negative profitability margins. The technical analysis indicates a bearish trend, and the valuation metrics are unattractive with a negative P/E ratio and no dividend yield. These factors collectively contribute to a low overall stock score.

Positive Factors

Focused brand & vertical integration

Zodiac’s vertically integrated model—manufacture, marketing and sale of men’s ready-to-wear—provides control over product quality, supply chain and brand positioning. That specialization can sustain steady demand and operational leverage if the company stabilizes costs and distribution.

Recent revenue and EPS growth

Modest revenue growth (~4.96%) alongside stronger EPS growth (~14.1%) indicates pockets of operational improvement versus prior weakness. If these trends persist, they can provide runway to rebuild margins, fund targeted investments and support a durable recovery over several quarters.

Moderate leverage and stable equity base

The balance sheet’s moderate debt-to-equity and stable equity ratio suggest the company is not overleveraged, offering financing flexibility. This structure can help manage working capital and access funding through cyclical apparel demand, provided operational losses are reduced.

Negative Factors

Negative profitability and declining margins

Material declines in gross and net margins signify structural pressure on profitability—either rising costs or weakening pricing power. Sustained negative margins undermine the ability to generate returns and reinvest, making durable recovery dependent on multi-quarter operational fixes.

Negative free cash flow and poor cash conversion

Persistent negative free cash flow and poor operating-cash-flow-to-net-income conversion constrain liquidity and operational flexibility. This forces reliance on external financing or asset adjustments, limiting capacity to fund capex, working capital and strategic initiatives sustainably over months.

Consistent net losses and negative ROE

Negative ROE driven by recurring net losses indicates shareholder capital is not producing returns and erodes equity over time. Without sustained profitability restoration, the company may need recapitalization or strategic restructuring to regain long-term viability and investor confidence.

Zodiac Clothing Company Limited Business Overview & Revenue Model

Company Description

Zodiac Clothing Company Limited designs, manufactures, markets, and sells men's clothing and accessories in India and internationally. It provides suits, ties, shirts, trousers, and club and casual wear, as well as accessories, such as belts, cufflinks, handkerchiefs, pochettes, and socks. The company offers its products under the Zodiac, Z3, and ZOD! brands. As of March 31, 2021, the company operated 101 stores. It also operates a web store. The company was incorporated in 1984 and is based in Mumbai, India.

How the Company Makes Money

Zodiac Clothing Company Limited generates revenue primarily through the sale of its clothing and accessories in retail outlets and online platforms. The company's revenue model is multifaceted, consisting of direct sales from physical stores, e-commerce transactions, and wholesale distribution to other retailers. Key revenue streams include seasonal collections, limited edition releases, and collaborations with influencers or designers that enhance brand visibility and attract new customers. Additionally, the company may benefit from strategic partnerships with e-commerce platforms and fashion distributors, which help to expand its market reach and drive sales growth.

Zodiac Clothing Company Limited Financial Statement Overview

Summary

Zodiac Clothing Company Limited is facing financial challenges with declining revenues, negative profitability margins, and liquidity issues. The company needs to improve its operational efficiencies, profitability, and cash flow management to enhance its financial health.

Income Statement

Zodiac Clothing Company Limited has shown a declining revenue trend in recent years with total revenues dropping from 2020 to 2025. The Gross Profit Margin has significantly decreased, and the Net Profit Margin is negative, indicating challenges in maintaining profitability. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company has a moderate debt-to-equity ratio, indicating a balance between debt and equity financing. However, the Return on Equity (ROE) is negative due to consistent net losses, which is a concern for investors. The equity ratio is stable, showing that a substantial portion of the company's assets is financed by shareholders' equity.

Cash Flow

Zodiac Clothing has struggled with negative free cash flow in recent years, indicating liquidity challenges. The operating cash flow to net income ratio is negative, highlighting issues in converting net income into cash flows. The company needs to enhance its cash generation ability to improve financial stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.76B	1.74B	1.46B	1.75B	1.22B	959.90M
Gross Profit	686.08M	332.92M	780.20M	952.40M	15.41M	525.88M
EBITDA	-61.80M	-77.71M	-105.09M	411.50M	-267.63M	33.17M
Net Income	-367.47M	-371.96M	-363.73M	159.81M	-163.69M	-293.82M
Balance Sheet
Total Assets	0.00	3.50B	3.82B	3.81B	3.63B	3.85B
Cash, Cash Equivalents and Short-Term Investments	93.51M	93.51M	282.10M	425.84M	109.19M	237.70M
Total Debt	0.00	942.60M	860.35M	641.90M	731.49M	898.52M
Total Liabilities	-2.06B	1.44B	1.36B	1.02B	1.16B	1.29B
Stockholders Equity	2.06B	2.06B	2.46B	2.79B	2.46B	2.56B
Cash Flow
Free Cash Flow	0.00	-210.18M	-179.78M	-39.00M	-100.95M	-100.83M
Operating Cash Flow	0.00	-172.51M	-54.67M	12.10M	-54.06M	-85.49M
Investing Cash Flow	0.00	267.88M	174.00M	156.60M	66.56M	81.32M
Financing Cash Flow	0.00	-99.37M	-149.82M	-152.20M	-95.61M	-16.09M

Zodiac Clothing Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.50
• 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:ZODIACLOTH, the sentiment is Negative. The current price of 84.5 is above the 20-day moving average (MA) of 82.02, below the 50-day MA of 85.33, and below the 200-day MA of 99.05, indicating a bearish trend. The MACD of -1.49 indicates Negative momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 40.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZODIACLOTH.

Zodiac Clothing Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANOMAY	69 Neutral	₹4.05B	20.68	―	―	8.41%	8.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SHIVATEX	59 Neutral	₹2.18B	13.47	―	0.33%	15.16%	780.57%
UNIVPHOTO	56 Neutral	₹2.18B	-1.40	―	―	―	―
BASML	47 Neutral	₹1.96B	13.42	―	―	-8.50%	―
ZODIACLOTH	42 Neutral	₹2.13B	-6.03	―	―	4.96%	14.10%

Zodiac Clothing Company Limited Corporate Events

Zodiac Clothing Files SEBI Regulation 74(5) Compliance Certificates for December Quarter

Zodiac Clothing Company Limited has submitted compliance certificates for the quarter ended 31 December 2025 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 to the stock exchanges where its shares are listed. The company’s registrar and share transfer agent, KFIN Technologies Limited, has certified that details of securities dematerialised and rematerialised during the period have been duly furnished to all relevant stock exchanges, underscoring ongoing regulatory compliance in handling of the company’s equity securities.