Zodiac Clothing Company Limited (ZODIACLOTH) AI Stock Analysis

Zodiac Clothing Company Limited

(NSE:ZODIACLOTH)

Select Model

Rating:42Neutral

Price Target:INR 58.00▼(-11.41% Downside)

Action:reiterated

Date:09/26/26

Persistent operating losses and weak, inconsistent cash flow generation are the main drivers of the low score, despite a balance sheet that remains stable enough in the near term. Technical indicators reinforce this cautious view by showing a sustained downtrend, negative momentum, and elevated volatility. Valuation adds limited support given the negative P/E ratio and lack of dividend yield information, leaving the risk profile high and upside potential constrained.

Positive Factors

Balance-Sheet CushionThe company retains a meaningful equity base relative to total assets, providing some protection against operating volatility and financial stress. This capital cushion can support continued operations and preserve flexibility while management works to restore profitability and improve returns.

Negative Factors

Recurring Losses and Margin PressureRepeated losses and sharp gross-margin compression indicate that earnings power has not been durable across recent years. Continued pressure from pricing, product mix, or costs could limit reinvestment, weaken returns on equity, and make recovery dependent on a sustained operating improvement.

Zodiac Clothing Company Limited (ZODIACLOTH) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.79B
Dividend Yield: ―
Average Volume (3M): 761
Price to Earnings (P/E): -5.0
Beta (1Y): 1.62
Revenue Growth: -11.34%
EPS Growth: 7.18%
Country: India
Employees: 968
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Zodiac Clothing Company Limited Business Overview & Revenue Model

Company Description

Zodiac Clothing Company Limited, an enterprise established in Mumbai, India, in 1984, operates as a comprehensive menswear company. It is actively involved in the design, manufacturing, marketing, and distribution of a wide array of men's apparel and...

How the Company Makes Money

Zodiac Clothing Company Limited primarily makes money by manufacturing and selling garments. Its revenue model is centered on B2B apparel supply, where it earns income from (1) sale of finished garments to customers (including export and domestic sal...

Zodiac Clothing Company Limited Financial Statement Overview

Summary

Persistent operating losses and negative EBIT, EBITDA, and net income in both the latest and prior years, coupled with thin and uneven cash generation, outweigh the modest improvement in gross margin and the still-adequate balance sheet.

Income Statement

18Very Negative

Balance Sheet

44Neutral

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.56B	1.62B	1.74B	1.46B	1.75B	1.22B
Gross Profit	436.08M	299.89M	332.92M	780.20M	952.40M	15.41M
EBITDA	-87.48M	1.44M	-77.71M	-105.09M	414.62M	-156.79M
Net Income	-346.52M	-350.40M	-371.96M	-363.73M	159.81M	-163.69M
Balance Sheet
Total Assets	0	3.42B	3.50B	3.82B	3.81B	3.63B
Cash, Cash Equivalents and Short-Term Investments	178.73M	178.73M	93.51M	282.10M	425.84M	109.19M
Total Debt	0	1.07B	942.60M	860.35M	641.90M	731.49M
Total Liabilities	-1.82B	1.60B	1.44B	1.36B	1.02B	1.16B
Stockholders Equity	1.82B	1.82B	2.06B	2.46B	2.79B	2.46B
Cash Flow
Free Cash Flow	41.61M	10.94M	-210.18M	-179.78M	-39.00M	-100.95M
Operating Cash Flow	76.05M	55.15M	-172.51M	-54.67M	12.10M	-54.06M
Investing Cash Flow	13.08M	-42.66M	267.88M	174.00M	156.60M	66.56M
Financing Cash Flow	-88.65M	-25.48M	-99.37M	-149.82M	-152.20M	-95.61M

Zodiac Clothing Company Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price65.47

Price Trends

50DMA68.74Negative

100DMA73.20Negative

200DMA75.10Negative

Market Momentum

MACD-1.26Negative

RSI47.59Neutral

STOCH48.96Neutral

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 65.47 is above the 20-day moving average (MA) of 65.25, below the 50-day MA of 68.74, and below the 200-day MA of 75.10, indicating a neutral trend. The MACD of -1.26 indicates Negative momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 48.96 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ZODIACLOTH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KKCL	69Neutral	INR 26.36B	17.38	―	0.96%	15.92%	-3.02%
IN:MONTECARLO	65Neutral	INR 10.55B	10.04	―	3.94%	15.59%	34.06%
IN:RAYMOND	56Neutral	INR 73.26B	130.42	―	―	-5.56%	-99.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ARVINDFASN	45Neutral	INR 46.76B	40.69	―	0.44%	13.94%	―
IN:ZODIACLOTH	42Neutral	INR 1.76B	-5.00	―	―	-11.34%	7.18%
IN:ABFRL	33Underperform	INR 47.08B	-6.12	―	―	-27.21%	-53.22%

* General Sector Average

Performance Comparison

IN:ZODIACLOTH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ZODIACLOTH	Zodiac Clothing Company Limited	65.38	-32.73	-33.36%
IN:ABFRL	Aditya Birla Fashion and Retail Limited	39.25	-44.93	-53.37%
IN:ARVINDFASN	Arvind Fashions Ltd.	364.95	-179.50	-32.97%
IN:KKCL	Kewal Kiran Clothing Limited	417.90	-95.59	-18.62%
IN:MONTECARLO	Monte Carlo Fashions Ltd.	506.90	-191.40	-27.41%
IN:RAYMOND	Raymond Limited	1123.05	551.10	96.35%

Zodiac Clothing Company Limited Corporate Events

Zodiac Clothing files SEBI Regulation 74(5) compliance certificate

Oct 2, 2026

Zodiac Clothing Company Limited has submitted compliance certificates under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 30 September 2026. The certificates, issued by KFIN Technologies Limited...

Zodiac Clothing Sets Virtual 42nd AGM to Approve FY26 Results and Director Reappointments

Sep 7, 2026

Zodiac Clothing Company Limited has scheduled its 42nd Annual General Meeting for September 30, 2026, at 3:00 p.m. IST, to be conducted exclusively via video conferencing and other audio-visual means in line with Ministry of Corporate Affairs and SEB...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 25, 2026

Zodiac Clothing Company Limited AI Stock Analysis