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Zota Health Care Ltd.
(ZOTA)
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Rating:55Neutral
Price Target:
₹1,222.00
▼(-20.30% Downside)
Action:Reiterated
Date:10/15/26
The score is held back primarily by weak financial quality—sharp margin compression and large, persistent negative operating/free cash flow—despite rapid revenue growth. Technicals are a meaningful positive with price trading above key moving averages and positive MACD, while valuation is mixed: high dividend yield helps, but the negative P/E reflects ongoing losses.
Positive Factors
Accelerating Revenue Growth
Rapidly accelerating revenue indicates expanding sales of the company’s pharmaceutical portfolio and stronger distribution reach. If growth can be converted into sustainable profits and cash generation, the larger revenue base could support operating scale, broader market presence, and future reinvestment.
Negative Factors
Severe Margin Compression
The sharp deterioration in gross and net margins shows that higher sales are not translating into proportionate economic value. Pricing pressure, mix changes, or cost inflation are overwhelming revenue growth, weakening earnings quality and making future profitability dependent on a material margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Revenue Growth
Rapidly accelerating revenue indicates expanding sales of the company’s pharmaceutical portfolio and stronger distribution reach. If growth can be converted into sustainable profits and cash generation, the larger revenue base could support operating scale, broader market presence, and future reinvestment.
Read all positive factors
Zota Health Care Ltd. (ZOTA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹40.31B
Dividend Yield0.08%
Average Volume (3M)116.33K
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth68.95%
EPS Growth-55.82%
CountryIN
Employees635
SectorGeneral
Sector StrengthN/A
IndustryBiotechnology
Share Statistics
EPS (TTM)-31.35
Shares Outstanding30,332,655
10 Day Avg. Volume60,964
30 Day Avg. Volume116,333
Financial Highlights & Ratios
PEG Ratio-5.04
Price to Book (P/B)5.05
Price to Sales (P/S)6.51
P/FCF Ratio-18.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-13.8
Revenue Forecast (FY)₹9.31B
Zota Health Care Ltd. Business Overview & Revenue Model
Company Description
Zota Health Care Limited is an Indian pharmaceutical firm dedicated to the development, manufacturing, and distribution of a broad spectrum of health-related products across India. Its extensive portfolio encompasses generic medications, over-the-...
How the Company Makes Money
Zota Health Care Ltd. makes money primarily by selling pharmaceutical and healthcare products, with revenue recognized from the sale of finished formulations marketed under its brands and supplied through its distribution network. Key revenue stre...
Zota Health Care Ltd. Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
27
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.09B | 5.39B | 2.93B | 1.80B | 1.40B | 1.31B |
| Gross Profit | 719.94M | 639.06M | 1.56B | 803.38M | 310.68M | 418.86M |
| EBITDA | 63.39M | 185.40M | -36.65M | 81.21M | 98.05M | 164.26M |
| Net Income | -1.03B | -739.36M | -563.98M | -143.48M | -57.73M | 89.08M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 11.31B | 4.39B | 2.28B | 1.58B | 1.39B |
| Cash, Cash Equivalents and Short-Term Investments | 955.74M | 955.74M | 36.19M | 10.05M | 11.15M | 22.99M |
| Total Debt | 0.00 | 2.70B | 1.40B | 952.85M | 451.22M | 149.00M |
| Total Liabilities | -6.96B | 4.35B | 2.12B | 1.38B | 777.55M | 494.67M |
| Stockholders Equity | 6.96B | 6.93B | 2.24B | 899.77M | 803.57M | 896.27M |
Cash Flow | ||||||
| Free Cash Flow | -558.29M | -1.92B | -959.42M | -226.94M | -145.05M | 100.84M |
| Operating Cash Flow | -191.07M | -790.12M | -499.64M | -59.84M | -20.06M | 133.32M |
| Investing Cash Flow | -728.26M | -3.22B | -956.20M | -129.03M | 147.03M | -266.52M |
| Financing Cash Flow | 946.32M | 4.93B | 1.47B | 187.76M | -138.81M | 142.73M |
Zota Health Care Ltd. Technical Analysis
Positive
1533.20
Price Trends
1217.84
Positive
1260.22
Positive
1254.36
Positive
Market Momentum
12.46
Positive
54.45
Neutral
54.71
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 1533.2 is above the 20-day moving average (MA) of 1309.99, above the 50-day MA of 1217.84, and above the 200-day MA of 1254.36, indicating a bullish trend. The MACD of 12.46 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 54.71 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹130.28B | 46.20 | ― | 0.61% | 4.02% | -12.81% | |
67 Neutral | ₹68.10B | 34.37 | ― | 0.12% | 28.14% | 11.38% | |
56 Neutral | ₹22.76B | 33.34 | ― | 0.11% | -20.86% | -34.51% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹40.31B | -39.62 | ― | 0.08% | 68.95% | -55.82% | |
50 Neutral | ₹179.26B | -10,420.00 | ― | ― | 10.66% | -104.59% | |
47 Neutral | ₹19.17B | -270.04 | ― | 0.56% | 10.26% | -162.02% |
* General Sector Average
IN:ZOTA
Zota Health Care Ltd.
1,328.80
-244.92
-15.56%
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IN:ONESOURCE
OneSource Specialty Pharma Limited
1,563.25
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Zota Health Care Ltd. Corporate Events
Zota Health Care Outlines Tax Treatment for Proposed Final Dividend
Sep 24, 2026
Zota Health Care Ltd. has informed shareholders that its board recommended a final dividend of 10%, equivalent to Re 1 per equity share of face value Rs 10, for the financial year 2025-26, subject to approval at the upcoming Annual General Meeting...
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.