Zota Health Care Ltd. (ZOTA) AI Stock Analysis

• Market Cap: ₹43.51B
• Dividend Yield: 0.06%
• Average Volume (3M): 68.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 82.58%
• EPS Growth: -63.05%
• Country: IN
• Employees: 445
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -5.21
• Shares Outstanding: 30,332,655
• 10 Day Avg. Volume: 83,032
• 30 Day Avg. Volume: 68,228
• PEG Ratio: -0.15
• Price to Book (P/B): 10.00
• Price to Sales (P/S): 7.63
• P/FCF Ratio: -23.31
• 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: 52 Neutral
• Price Target: ₹1,665.00 ▲(8.60% Upside)

The overall stock score of 52 reflects strong technical indicators suggesting positive momentum, but this is offset by significant financial performance challenges, including negative profitability and cash flow issues. The valuation is also unattractive due to a negative P/E ratio and low dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Zota's products and services, enhancing its market position and potential for future expansion.

Business Model Diversification

Diversified revenue streams reduce dependency on a single product line, providing stability and resilience against market fluctuations.

Asset Base Expansion

An expanding asset base provides a foundation for scaling operations and increasing market reach, supporting long-term growth strategies.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder reinvestment in growth opportunities and affect financial sustainability over time.

Cash Flow Issues

Cash flow problems may limit the company's ability to finance operations and invest in growth, posing risks to long-term viability.

High Leverage

High leverage increases financial risk and could constrain the company's flexibility in managing economic downturns or pursuing strategic initiatives.

Zota Health Care Ltd. Business Overview & Revenue Model

Company Description

Zota Health Care Limited develops, manufactures, and markets pharmaceutical products in India. It offers generic drugs, over-the-counter products, ayurvedic products, and nutraceutical products. The company provides various medicines for chronic illnesses, including heart disease, diabetes, thyroid, and others. As of March 31, 2021, it operated 591 retail stores under the DAVAINDIA name in 24 states of India. The company was founded in 1995 and is headquartered in Surat, India.

How the Company Makes Money

Zota Health Care Ltd. generates revenue through multiple streams, including the sale of pharmaceuticals and medical devices, which account for a significant portion of its income. The company also offers specialized health management services, providing consulting and support to healthcare providers. Key revenue streams include direct sales to healthcare facilities, partnerships with insurance companies for wellness program implementations, and licensing agreements for proprietary healthcare technologies. Additionally, ZOTA's strategic collaborations with research institutions enhance its product offerings and market reach, contributing to its overall earnings.

Zota Health Care Ltd. Financial Statement Overview

Summary

Zota Health Care Ltd. shows strong revenue growth but struggles with profitability and cash flow management. High leverage and negative profitability margins raise concerns about financial stability. While the company's asset base is expanding, improving operational efficiency and cash flow generation will be crucial for sustainable growth.

Income Statement

Zota Health Care Ltd. has seen significant revenue growth from 2024 to 2025, with a revenue growth rate of 62.3%. However, the company is facing profitability challenges with a negative net profit margin of -19.2% and a gross profit margin of 53.1% in 2025. Negative EBIT and EBITDA margins further highlight operational inefficiencies, impacting overall profitability.

Balance Sheet

The company has a moderately high debt-to-equity ratio of 0.62, indicating reliance on debt financing. Despite this, the equity ratio is relatively stable at 50.9%, suggesting a balanced capital structure. Return on equity is negative, reflecting ongoing profitability issues. The company's asset base has grown, which could support future expansion if profitability improves.

Cash Flow

Negative free cash flow and operating cash flow indicate liquidity challenges, with a significant free cash flow decline from the previous year. The company has a negative free cash flow to net income ratio, suggesting cash generation issues. Financing activities have been used to support operations, raising concerns about sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.93B	2.93B	1.80B	1.40B	1.31B	1.07B
Gross Profit	1.56B	1.56B	803.38M	310.68M	418.86M	193.14M
EBITDA	-36.65M	-36.65M	81.21M	98.05M	164.26M	28.63M
Net Income	-563.98M	-563.98M	-143.48M	-57.73M	89.08M	-2.09M
Balance Sheet
Total Assets	4.39B	4.39B	2.28B	1.58B	1.39B	854.69M
Cash, Cash Equivalents and Short-Term Investments	36.19M	36.19M	10.05M	11.15M	22.99M	13.46M
Total Debt	1.40B	1.40B	952.85M	451.22M	149.00M	0.00
Total Liabilities	2.12B	2.12B	1.38B	777.55M	494.67M	191.72M
Stockholders Equity	2.24B	2.24B	899.77M	803.57M	896.27M	662.97M
Cash Flow
Free Cash Flow	0.00	-959.42M	-226.94M	-145.05M	100.84M	-28.18M
Operating Cash Flow	0.00	-499.64M	-59.84M	-20.06M	133.32M	-8.90M
Investing Cash Flow	0.00	-956.20M	-129.03M	147.03M	-266.52M	38.20M
Financing Cash Flow	0.00	1.47B	187.76M	-138.81M	142.73M	-24.19M

Zota Health Care Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1533.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZOTA, the sentiment is Negative. The current price of 1533.2 is below the 20-day moving average (MA) of 1553.35, below the 50-day MA of 1569.27, and above the 200-day MA of 1254.71, indicating a neutral trend. The MACD of -30.10 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 6.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZOTA.

Zota Health Care Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALEMBICLTD	74 Outperform	₹25.19B	7.78	―	2.36%	16.53%	4.37%
SMSPHARMA	65 Neutral	₹31.79B	35.37	―	0.13%	11.91%	36.92%
SOLARA	55 Neutral	₹26.38B	405.72	―	―	-4.18%	―
ZOTA	52 Neutral	₹43.51B	-66.73	―	0.06%	82.58%	-63.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	51 Neutral	₹24.87B	-343.49	―	―	9.78%	50.78%
INDOCO	40 Neutral	₹20.18B	-18.25	―	0.08%	-2.81%	-444.69%

Zota Health Care Ltd. Corporate Events

Zota Health Care Successfully Completes Qualified Institutions Placement

Zota Health Care Limited has announced the successful closure of its Qualified Institutions Placement (QIP), raising funds through the issuance of 22,80,130 equity shares to eligible institutional buyers at a determined price of ₹1,535 per share. This strategic move underscores the company’s commitment to strengthening its financial base to pursue growth opportunities, potentially boosting its market position and offering value to stakeholders.

Zota Health Care Concludes ₹1,535/share QIP Fundraising

Zota Health Care Limited has successfully concluded its Qualified Institutions Placement (QIP) of equity shares, raising funds by allocating 22,80,130 equity shares to qualified institutional buyers at ₹1,535 per share, inclusive of a premium. This strategic move will bolster the company’s financial capabilities, potentially enhancing its market positioning and operational initiatives within the competitive healthcare sector.

Zota Health Care Ltd. Raises ₹350 Crore via Qualified Institutions Placement

Zota Health Care Ltd. announced the successful completion of a Qualified Institutions Placement (QIP), resulting in the allotment of 2,280,130 equity shares to qualified institutional buyers at an issue price of ₹1,535 per share. This capital raise, totaling approximately ₹350 crore, increases the company’s paid-up equity share capital and provides financial resources for future operations and market growth, enhancing its market visibility in the healthcare sector.

Zota Health Care Ltd. Launches Qualified Institutions Placement to Raise Capital

Zota Health Care Ltd. has announced the approval and launch of a Qualified Institutions Placement (QIP) to raise capital through the issuance of equity shares to qualified institutional buyers. This strategic financial move, approved by the company’s Fund-Raising Committee, sets a floor price of ₹1,615.28 per share, with a potential discount of up to 5%, and is aimed at strengthening the company’s financial position and enhancing its market competitiveness.

Zota Health Care Ltd. Approves Qualified Institutions Placement to Boost Capital

Zota Health Care Ltd. has announced the approval of a Qualified Institutions Placement (QIP) to raise capital by issuing equity shares to qualified institutional buyers. This strategic move, approved by the Fund-Raising Committee, aims to strengthen the company’s financial position and enhance its market presence. The floor price for the QIP has been set at ₹1,615.28 per share, with a potential discount of up to 5%. This initiative is expected to have significant implications for the company’s operations and its stakeholders, as it aligns with the company’s growth strategy and regulatory compliance.

Zota Health Care Announces Investor Meetings in Mumbai

Zota Health Care Limited has announced a schedule for meetings with institutional investors and analysts, organized by ICICI Securities, to be held in Mumbai on November 6 and 7, 2025. These meetings aim to engage with stakeholders and provide updates on the company’s operations, while ensuring no unpublished price-sensitive information is disclosed. The meetings reflect Zota’s proactive approach to investor relations and transparency, potentially enhancing its market position and stakeholder confidence.

Zota Health Care Releases Unaudited Financial Results

Zota Health Care Limited has announced the publication of its unaudited financial results for the quarter and half-year ending September 30, 2025. The results have been published in the ‘Financial Express’ and ‘Gujarat Guardian’ newspapers, and include a Quick Response Code and webpage details for investors to access the complete financial results. This announcement is part of the company’s compliance with SEBI regulations and aims to maintain transparency with its stakeholders.

Zota Health Care Ltd. Complies with SEBI Regulations for Q3 2025

Zota Health Care Ltd. has informed the National Stock Exchange of India about the compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended September 30, 2025. The company confirmed that physical share certificates received for dematerialization have been processed, listed on stock exchanges, and appropriately updated in their records, ensuring adherence to regulatory requirements.