Zodiac Clothing Company Limited (ZODIACLOTH) AI Stock Analysis

• Market Cap: ₹1.87B
• Dividend Yield: N/A
• Average Volume (3M): 2.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 4.96%
• EPS Growth: 14.10%
• Country: IN
• Employees: 1,196
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -3.32
• Shares Outstanding: 27,458,132
• 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: 40 Underperform
• Price Target: ₹65.00 ▼(-23.08% Downside)
• Action: Downgraded Date: 03/17/26
• Date: Action: Downgraded 03/17/26

The score is driven primarily by weak financial performance (declining revenue, negative profitability, and strained cash generation). Technicals add additional downside pressure with a clear downtrend despite oversold signals, while valuation provides limited support due to a negative P/E and no dividend yield data.

Positive Factors

Integrated business model

Zodiac’s vertically integrated model—manufacture through branded sales channels—supports tighter control of product quality, inventory and gross margins. That structural control can sustain margins and customer relationships over months, aiding recovery if demand improves.

Moderate leverage

A moderate debt-to-equity profile provides financial flexibility to manage working capital and seasonal inventory needs without excessive interest burden. This balance reduces default risk and preserves capacity for strategic investment over the next several quarters.

Improving EPS trend

Reported positive EPS growth suggests improving per-share profitability dynamics, which can reflect operational efficiencies, cost control, or capital structure effects. If sustained, this trajectory supports longer-term earnings recovery and strengthens reinvestment capacity.

Negative Factors

Declining revenue

A multi-year decline in revenues reduces operating scale and dilutes fixed-cost leverage, pressuring margins and cash generation. Persistent top-line contraction makes it harder to return to sustained profitability and weakens competitive positioning over months.

Negative profitability

Sustained negative operating and net margins and a negative ROE signal the business currently fails to cover costs or deliver shareholder returns. This erodes retained capital, constrains strategic spending, and increases dependency on external funding if losses persist.

Weak cash generation

Negative free cash flow and poor conversion of income into cash create liquidity pressure, limiting ability to fund inventory, capex, or marketing without raising debt or equity. Over several quarters this can force cost cuts or asset sales, impairing growth prospects.

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

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Zodiac Clothing Company Limited Financial Statement Overview

Summary

Weak fundamentals: declining revenues, significantly lower gross margin, negative net/EBIT/EBITDA margins, and negative ROE. Cash flow is also pressured with negative free cash flow and poor cash conversion, only partially offset by a moderate debt-to-equity level.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.69B	1.74B	1.46B	1.75B	1.22B	959.90M
Gross Profit	843.64M	332.92M	780.20M	952.40M	15.41M	525.88M
EBITDA	-82.04M	-77.71M	-105.09M	411.50M	-267.63M	33.17M
Net Income	-344.79M	-371.96M	-363.73M	159.81M	-163.69M	-293.82M
Balance Sheet
Total Assets	3.48B	3.50B	3.82B	3.81B	3.63B	3.85B
Cash, Cash Equivalents and Short-Term Investments	115.47M	93.51M	282.10M	425.84M	109.19M	237.70M
Total Debt	1.14B	942.60M	860.35M	641.90M	731.49M	898.52M
Total Liabilities	1.63B	1.44B	1.36B	1.02B	1.16B	1.29B
Stockholders Equity	1.85B	2.06B	2.46B	2.79B	2.46B	2.56B
Cash Flow
Free Cash Flow	41.61M	-210.18M	-179.78M	-39.00M	-100.95M	-100.83M
Operating Cash Flow	76.05M	-172.51M	-54.67M	12.10M	-54.06M	-85.49M
Investing Cash Flow	13.08M	267.88M	174.00M	156.60M	66.56M	81.32M
Financing Cash Flow	-88.65M	-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: Positive
• RSI: Positive
• STOCH: Positive

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 77.16, above the 50-day MA of 80.90, and below the 200-day MA of 95.56, indicating a bearish trend. The MACD of -3.54 indicates Positive momentum. The RSI at 26.15 is Positive, neither overbought nor oversold. The STOCH value of 7.48 is Positive, 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	₹3.96B	19.63	―	―	8.41%	8.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNIVPHOTO	62 Neutral	₹5.43B	-2.56	―	―	―	―
SHIVATEX	59 Neutral	₹1.87B	36.61	―	0.33%	15.16%	780.57%
BASML	44 Neutral	₹1.52B	22.90	―	―	-8.50%	―
ZODIACLOTH	40 Underperform	₹1.87B	-6.35	―	―	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.