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Zota Health Care Ltd. (IN:ZOTA)
:ZOTA
India Market
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Zota Health Care Ltd. (ZOTA) AI Stock Analysis

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IN:ZOTA

Zota Health Care Ltd.

(ZOTA)

Rating:49Neutral
Price Target:
₹1,319.00
▼(-0.54% Downside)
The overall stock score is primarily impacted by financial performance challenges, including profitability and cash flow issues. Despite strong revenue growth, the company's high leverage and negative margins raise concerns. Technical analysis shows positive momentum, but valuation metrics reflect the company's unprofitability, limiting the stock's attractiveness.

Zota Health Care Ltd. (ZOTA) vs. iShares MSCI India ETF (INDA)

Zota Health Care Ltd. Business Overview & Revenue Model

Company DescriptionZota Health Care Ltd. (ZOTA) is a leading pharmaceutical company based in India, primarily engaged in the manufacturing and marketing of a wide range of pharmaceutical formulations. The company operates in various sectors including generic drugs, over-the-counter (OTC) products, and health and wellness products. Zota Health Care is known for its strong portfolio of products catering to diverse therapeutic categories, and its commitment to delivering affordable and quality healthcare solutions.
How the Company Makes MoneyZota Health Care Ltd. generates revenue through the sale of its pharmaceutical and healthcare products both domestically and internationally. The company's key revenue streams include the production and distribution of generic medications, which are typically sold to pharmacies, hospitals, and healthcare providers. Additionally, ZOTA earns income from the sale of OTC products directly to consumers. The company leverages its established distribution networks and strategic partnerships with distributors to expand its market reach. Furthermore, Zota Health Care's earnings are enhanced by its focus on innovation and product development, allowing it to introduce new and effective healthcare solutions that meet market demands.

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
38
Negative
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
44
Neutral
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
32
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.45B2.93B1.80B1.40B1.31B1.07B
Gross Profit1.14B1.56B803.38M310.68M418.86M193.14M
EBITDA-84.64M-36.65M82.07M98.05M164.26M28.63M
Net Income-504.26M-563.98M-143.48M-57.73M89.08M-2.09M
Balance Sheet
Total Assets0.004.39B2.28B1.58B1.39B854.69M
Cash, Cash Equivalents and Short-Term Investments23.16M36.19M10.05M11.15M22.99M13.46M
Total Debt0.001.40B952.85M451.22M149.00M0.00
Total Liabilities-1.62B2.12B1.38B777.55M494.67M191.72M
Stockholders Equity1.62B2.24B899.77M803.57M896.27M662.97M
Cash Flow
Free Cash Flow0.00-959.42M-226.94M-145.05M100.84M-28.18M
Operating Cash Flow0.00-499.64M-59.84M-20.06M133.32M-8.90M
Investing Cash Flow0.00-956.20M-129.03M147.03M-266.52M38.20M
Financing Cash Flow0.001.47B187.76M-138.81M142.73M-24.19M

Zota Health Care Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1326.10
Price Trends
50DMA
1217.02
Positive
100DMA
1074.56
Positive
200DMA
943.93
Positive
Market Momentum
MACD
21.95
Negative
RSI
64.67
Neutral
STOCH
87.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZOTA, the sentiment is Positive. The current price of 1326.1 is above the 20-day moving average (MA) of 1274.42, above the 50-day MA of 1217.02, and above the 200-day MA of 943.93, indicating a bullish trend. The MACD of 21.95 indicates Negative momentum. The RSI at 64.67 is Neutral, neither overbought nor oversold. The STOCH value of 87.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ZOTA.

Zota Health Care Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹26.76B8.61
2.26%28.84%13.01%
61
Neutral
₹30.44B141.32
-7.29%
56
Neutral
₹20.78B27.48
0.17%10.29%26.79%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
49
Neutral
₹39.93B
0.08%71.72%-125.44%
47
Neutral
₹25.24B96.22
0.54%-8.28%-246.17%
46
Neutral
₹24.99B217.88
11.80%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ZOTA
Zota Health Care Ltd.
1,326.10
652.88
96.98%
IN:ALEMBICLTD
Alembic Limited
104.20
-50.88
-32.81%
IN:INDOCO
Indoco Remedies Limited
273.65
-95.33
-25.84%
IN:PANACEABIO
Panacea Biotec Limited
408.05
162.05
65.87%
IN:SMSPHARMA
SMS Pharmaceuticals Limited
236.30
-98.29
-29.38%
IN:SOLARA
Solara Active Pharma Sciences Ltd.
664.30
-81.10
-10.88%
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 04, 2025