18.94% drop for ZENITHSTL.NS (Zenith Steel, NSE) on 22 Jan 2026: analyst focus
ZENITHSTL.NS stock closed sharply lower after a heavy intraday selloff on 22 Jan 2026, finishing at INR 5.35, down 18.94% from the prior close of INR 6.60. The move came on elevated volume of 1,091,708.00 shares, roughly ten times average turnover, and put the share price near its recent trading low. Investors and analysts are parsing weak liquidity ratios, stretched receivables and a mixed rating profile as reasons for the decline. We examine drivers, fundamentals, technicals and Meyka AI’s forecast to help frame the short-term outlook for Zenith Steel Pipes & Industries Limited (ZENITHSTL.NS) on the NSE in India.
ZENITHSTL.NS stock: intraday price action and volume
Trading on the NSE saw ZENITHSTL.NS open at INR 5.99 and hit an intraday low at INR 5.35 before close on 22 Jan 2026. Volume spiked to 1,091,708.00, well above its 50-day average of 112,201.00, signalling broad selling pressure. The day high was INR 6.19 and the stock’s year high remains INR 10.33, highlighting the scale of recent weakness.
Drivers of the selloff and news context
Analyst and market signals point to weak liquidity — a current ratio of 0.23 and cash per share of INR 0.09 — and slow receivables with days sales outstanding at 275.94, which likely amplified the decline. Company-specific news is limited; investors appear to be reacting to tight working capital metrics and a recent negative company rating released on 21 Jan 2026 that showed a grade of C- with a ‘Strong Sell’ recommendation in several valuation buckets.
Fundamental snapshot and valuation
Zenith Steel Pipes & Industries Limited (ZENITHSTL.NS) reports EPS of INR 0.31 and a trailing PE near 19.16, below the Basic Materials sector average PE of 32.92. Market cap stands at INR 845145861.00. Key red flags: shareholders’ equity per share reads -17.56, negative book metrics, enterprise value to sales at 3.20, and interest coverage at -4.10. Gross margin is strong at 47.77%, but operating margin is negative at -10.92%, reflecting cost and operational stress.
Technical view and Meyka AI rating
Technically, the RSI is 41.01 (neutral-to-weak) and ADX at 27.08 shows a strong trend. Bollinger middle band is INR 7.28, well above the close. Meyka AI rates ZENITHSTL.NS with a score out of 100: 60.97 / Grade B / Suggestion: HOLD. This grade factors in S&P 500 comparison, sector and industry performance, financial growth, key metrics, forecasts and analyst consensus. These grades are informational and not financial advice.
Forecasts, price targets and analyst signals
Meyka AI’s forecast model projects a monthly price of INR 6.47 and a yearly target of INR 7.57. Based on the yearly projection, implied upside from today’s INR 5.35 is approximately 41.50%. Short-term technical resistance sits near INR 6.00 and a medium-term target range of INR 7.50 to INR 8.00 aligns with model output. Note that external analyst sentiment includes mixed-to-negative ratings; the company rating snapshot on 21 Jan 2026 flagged multiple valuation concerns.
Risks, sector context and trading strategy
Major risks include stretched receivables, negative equity per share, weak current ratio, and high enterprise value to EBITDA near 33.43, which increases downside sensitivity. The Basic Materials sector has an average PE of 32.92, meaning ZENITHSTL.NS’s lower PE offers value only if balance-sheet issues are resolved. For traders, consider tight stop-losses and size positions cautiously; for longer-term investors, wait for working capital improvement and clearer earnings stability.
Final Thoughts
ZENITHSTL.NS stock finished the 22 Jan 2026 NSE session at INR 5.35, down 18.94%, on volume of 1,091,708.00. The drop reflects liquidity stress, large receivables days and a weak operating profile despite a healthy gross margin. Meyka AI’s forecast model projects a yearly level near INR 7.57, implying about 41.50% upside from the close, while the monthly model sits at INR 6.47 (implied upside 20.93%). Meyka AI rates ZENITHSTL.NS 60.97 / B / HOLD, a balanced grade that weighs sector comparisons, financial growth and forecasts while flagging valuation and solvency risks. Investors should weigh the potential upside in model projections against the company’s weak current ratio (0.23), negative book value per share (-17.56) and the 21 Jan 2026 company rating that flagged several strong-sell indicators. Use small position sizes, confirm any recovery in receivables and cash flow, and monitor official company updates. For more details and live tracking see the company site and quotation page: Zenith Steel Pipes website and NSE quote for ZENITHSTL.NS. Meyka AI provides this AI-powered market analysis and model-based forecasts; forecasts are projections and not guarantees.
FAQs
Why did ZENITHSTL.NS stock drop on 22 Jan 2026?
The fall was driven by weak liquidity ratios (current ratio 0.23), long receivables (DSO 275.94), negative operating margins and a negative company rating on 21 Jan 2026; high volume suggests broad selling pressure.
What is Meyka AI’s view and grade on ZENITHSTL.NS stock?
Meyka AI rates ZENITHSTL.NS 60.97 / Grade B / HOLD. The grade balances sector and benchmark comparisons, financial metrics and forecasts, while noting solvency and valuation risks.
What price targets and forecasts exist for ZENITHSTL.NS stock?
Meyka AI’s model projects a monthly target of INR 6.47 and a yearly target of INR 7.57, implying short-term upside near 20.93% and yearly upside near 41.50% from INR 5.35.
What are the main risks to consider for ZENITHSTL.NS stock?
Key risks: negative book value per share (-17.56), poor current ratio (0.23), stretched receivables and weak interest coverage (-4.10); these can increase downside volatility.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
