NSEI:ZODIACLOTH

Stock Analysis Report

Executive Summary

Zodiac Clothing Company Limited designs, manufactures, markets, and sells men’s clothing and accessories in India and internationally.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Zodiac Clothing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZODIACLOTH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.2%

ZODIACLOTH

-2.3%

IN Luxury

-2.9%

IN Market


1 Year Return

-55.6%

ZODIACLOTH

-26.7%

IN Luxury

-29.3%

IN Market

Return vs Industry: ZODIACLOTH underperformed the Indian Luxury industry which returned -26.9% over the past year.

Return vs Market: ZODIACLOTH underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

ZODIACLOTHIndustryMarket
7 Day-13.2%-2.3%-2.9%
30 Day-38.1%-28.6%-26.5%
90 Day-40.4%-25.5%-28.5%
1 Year-55.4%-55.6%-26.1%-26.7%-27.9%-29.3%
3 Year-43.6%-44.6%1.6%-0.9%-15.4%-20.0%
5 Year-62.8%-63.9%44.6%39.4%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is Zodiac Clothing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zodiac Clothing undervalued compared to its fair value and its price relative to the market?

0.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ZODIACLOTH (₹99.95) is trading above our estimate of fair value (₹4.04)

Significantly Below Fair Value: ZODIACLOTH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZODIACLOTH is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: ZODIACLOTH is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZODIACLOTH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZODIACLOTH is overvalued based on its PB Ratio (0.9x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Zodiac Clothing forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.0%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Zodiac Clothing has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Zodiac Clothing performed over the past 5 years?

-52.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZODIACLOTH is currently unprofitable.

Growing Profit Margin: ZODIACLOTH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZODIACLOTH is unprofitable, and losses have increased over the past 5 years at a rate of -52.6% per year.

Accelerating Growth: Unable to compare ZODIACLOTH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ZODIACLOTH is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (6.4%).


Return on Equity

High ROE: ZODIACLOTH has a negative Return on Equity (-11.24%), as it is currently unprofitable.


Next Steps

Financial Health

How is Zodiac Clothing's financial position?


Financial Position Analysis

Short Term Liabilities: ZODIACLOTH's short term assets (₹1.9B) exceed its short term liabilities (₹1.2B).

Long Term Liabilities: ZODIACLOTH's short term assets (₹1.9B) exceed its long term liabilities (₹869.8M).


Debt to Equity History and Analysis

Debt Level: ZODIACLOTH's debt to equity ratio (19.6%) is considered satisfactory.

Reducing Debt: ZODIACLOTH's debt to equity ratio has reduced from 22.1% to 19.6% over the past 5 years.


Balance Sheet

Inventory Level: ZODIACLOTH has a high level of physical assets or inventory.

Debt Coverage by Assets: ZODIACLOTH's debt is covered by short term assets (assets are 3.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ZODIACLOTH has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ZODIACLOTH has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -42.2% each year


Next Steps

Dividend

What is Zodiac Clothing's current dividend yield, its reliability and sustainability?

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZODIACLOTH's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: ZODIACLOTH's dividend (0.91%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: ZODIACLOTH's dividend payments have been volatile in the past 10 years.

Growing Dividend: ZODIACLOTH's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: ZODIACLOTH is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average board tenure


CEO

Salman Noorani (56yo)

no data

Tenure

₹6,039,600

Compensation

Mr. Salman Yusuf Noorani serves as the Managing Director and President of Zodiac Clothing Company Ltd and serves as Vice Chairman of the Board at Zodiac Clothing Company Limited since February 12, 2020. Mr ...


CEO Compensation Analysis

Compensation vs Market: Salman's total compensation ($USD80.13K) is above average for companies of similar size in the Indian market ($USD48.50K).

Compensation vs Earnings: Salman's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Salman Noorani
Vice Chairmanno data₹6.04m6.85% 169.4m
Deepak Parekh
Member of Advisory Board6.17yrsno datano data
Susim Datta
Member of Advisory Board5.17yrs₹134.83kno data
Yogendra Trivedi
Independent & Non-Executive Director20.17yrs₹790.00k0.11% 2.6m
Naushad Forbes
Non-Executive Independent Director2yrs₹170.00k0.17% 4.3m
Bernhard Steinruecke
Independent & Non-Executive Director22.33yrs₹170.00k0.14% 3.3m
Anees Noorani
Chairman0.083yrno data7.83% 193.5m
Subramaniam Iyer
Independent & Non-Executive Director17.75yrs₹790.00k0.030% 742.5k
Anil Kapoor
Member of Advisory Boardno datano datano data
Elizabeth Hulse
Independent & Non Executive Director5.08yrs₹50.00kno data

5.2yrs

Average Tenure

72yo

Average Age

Experienced Board: ZODIACLOTH's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.


Top Shareholders

Company Information

Zodiac Clothing Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zodiac Clothing Company Limited
  • Ticker: ZODIACLOTH
  • Exchange: NSEI
  • Founded: 1984
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹2.473b
  • Shares outstanding: 22.48m
  • Website: https://www.zodiaconline.com

Location

  • Zodiac Clothing Company Limited
  • Nyloc House
  • 254, D-2, Dr. Annie Besant Road
  • Mumbai
  • Maharashtra
  • 400030
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521163BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1995
ZODIACLOTHNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1995

Biography

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 comprising belts, cufflinks, handkerchiefs, pochettes, and socks. The company offers its products under the Zodiac, Z3, and ZOD! brands. As of March 31, 2019, the company operated 120 stores. It also operates a Web store. The company was incorporated in 1984 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:03
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.