Zota Health Care (ZOTA)
TurnaroundFairStock Score: 2/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,131.3 |
| Market Cap | ₹3,431.53 Cr |
| P/E Ratio | 0 |
| ROCE | -16.98% |
| ROE | -16.05% |
| Dividend Yield | 0.08% |
| Profit Growth | -57.92% |
| Debt/Equity | 0.39 |
| Sales Growth | 67.7% |
| Promoter Holding | 50.64% |
| 52-Week Range | ₹1,022 — ₹1,740 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹200.24 |
Strengths
- Sales grew 98.21%, showing strong top-line expansion and market traction.
- Promoter holding of 50.64% aligns management with minority shareholders.
- Debt/equity of 0.57 is moderate and does not indicate acute leverage stress.
- Latest quarterly revenue of ₹143 Cr shows the company is building scale.
Concerns
- Latest quarter net loss of ₹30 Cr and negative earnings make the P/E meaningless.
- ROCE of -16.98% indicates capital is being eroded; ROE is not meaningful due to losses.
- P/B of 12.47 against book value of ₹103.04 implies an extremely expensive valuation.
- Piotroski F-Score of 3/9 signals weak financial health and possible cash-flow strain.
AI Analysis
Let's start with what I can judge: a business must eventually earn money. Zota Health Care doesn't. The latest quarter shows ₹143 Cr of sales but a net loss of ₹30 Cr. The P/E is meaningless at 0.00 because there are no positive earnings. Graham taught me to buy with a margin of safety, not pay ₹1,284.60 for ₹103.04 of book value—that's a P/B of 12.47. The ROCE is -16.98%, so every rupee of capital employed is being destroyed. Sales growth of 98.21% sounds exciting, but profit growth is -57.92%. Growing revenue while losing more money is not a business; it becomes a cash burner unless something fundamental changes. Debt/equity is 0.57, not alarming, but with negative returns even moderate debt becomes a burden. Dividend yield is a token 0.08%, and the Piotroski F-Score of 3/9 tells me financial health is weak. Promoter holding of 50.64% is good to see—owners have skin in the game—but good ownership cannot overcome poor economics. In this situation, I cannot estimate intrinsic value with confidence. A FairStock Score of 2/100 calls it risky, and I agree. Zota may be a turnaround candidate: high sales growth and a large pharma opportunity could produce future profits. But as a value investor, I need evidence, not hope. I want to see margins improve, losses narrow, and cash flow turn positive. Until then, this is a speculation, not an investment. My circle of competence says pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer