Zodiac Energy Reports Strong Q2 FY24-25 Growth Amid Mixed Market Sentiment

Zodiac Energy, a microcap player in the engineering and industrial equipment sector, has recently undergone an evaluation adjustment reflecting its financial standing. The company reported very positive financial performance for the second quarter of FY24-25, showcasing a robust annual growth rate in operating profit of 38.84%. Additionally, net profit surged by 68.24%, contributing to a strong performance narrative as the company declared positive results for six consecutive quarters.
The profit after tax (PAT) for the first nine months reached Rs 10.51 crore, marking a significant growth of 168.80%. Furthermore, the profit before tax (PBT) less other income for the quarter stood at Rs 3.59 crore, reflecting a growth rate of 112.43%. Operating cash flow also reached a notable high of Rs 15.97 crore.

With a return on capital employed (ROCE) of 14.7 and a fair valuation indicated by a 4.8 enterprise value to capital employed ratio, Zodiac Energy is trading at a discount compared to its historical averages. Over the past year, the stock has generated a return of 58.69%, significantly outperforming the broader market.

Despite these positive indicators, the stock is currently positioned in a mildly bearish technical range, with the MACD showing bearish signals since February 1, 2025. Notably, domestic mutual funds hold no stake in the company, which may suggest a cautious approach towards its valuation or business prospects.

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