Zota Health Care Ltd. (ZOTA) AI Stock Analysis

• Market Cap: ₹46.57B
• Dividend Yield: 0.07%
• Average Volume (3M): 71.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• 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: 40,063
• 30 Day Avg. Volume: 71,213
• 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: 51 Neutral
• Price Target: ₹1,510.00 ▼(-0.83% Downside)

Zota Health Care Ltd.'s overall stock score is primarily impacted by its financial performance, which highlights significant revenue growth but severe profitability and cash flow challenges. Technical analysis shows strong bullish momentum, although overbought indicators suggest caution. Valuation metrics are weak, with a negative P/E ratio and low dividend yield, further weighing down the score.

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 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

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	86.86M	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: Positive
• Last Price: 1522.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1522.6 is below the 20-day moving average (MA) of 1535.27, above the 50-day MA of 1462.63, and above the 200-day MA of 1104.46, indicating a neutral trend. The MACD of 23.88 indicates Positive momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.07 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALEMBICLTD	74 Outperform	₹26.25B	8.29	―	2.41%	28.84%	13.01%
SMSPHARMA	65 Neutral	₹24.95B	33.41	―	0.14%	10.29%	25.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZOTA	51 Neutral	₹46.57B	―	―	0.07%	82.58%	-63.05%
SOLARA	49 Neutral	₹22.33B	116.72	―	―	-4.18%	―
INDOCO	45 Neutral	₹25.20B	-22.46	―	0.08%	-2.81%	-444.69%
PANACEABIO	45 Neutral	₹26.48B	230.65	―	―	11.80%	―

Zota Health Care Ltd. Corporate Events

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.

Zota Health Care Ltd. Increases Equity Capital Through Warrant Conversion

Zota Health Care Ltd. announced the allotment of 95,921 equity shares following the conversion of warrants as part of a preferential issue. This move increases the company’s paid-up equity capital and reflects its strategic approach to strengthening its financial position. The allotment, approved by the board, is expected to enhance the company’s market presence and provide additional value to its stakeholders.

Zota Health Care Ltd. Expands Davaindia Store Network in Q2FY26

Zota Health Care Ltd. announced a significant expansion of its Davaindia store network in the second quarter of fiscal year 2026, with the opening of 310 new stores, bringing the total to 2,055. This expansion, managed by its subsidiary Davaindia Health Mart Limited, strengthens the company’s market position and enhances its accessibility to consumers, potentially increasing its market share and stakeholder value.

Zota Health Care to Engage with Investors at Mumbai Conference

Zota Health Care Limited announced its participation in an upcoming conference organized by DAM Capital Advisors Limited in Mumbai on September 23, 2025. The company will engage with analysts and institutional investors in one-on-one or group meetings, using publicly available business update presentations, ensuring no unpublished price-sensitive information is disclosed.