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Last Updated on: 06 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: | NSE:

Zota Health Care Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 27, 2024, 10:01 pm

Market Cap 1,601 Cr.
Current Price 584
High / Low725/398
Stock P/E
Book Value 34.8
Dividend Yield0.17 %
ROCE7.32 %
ROE16.8 %
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Zota Health Care Ltd

Competitors of Zota Health Care Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,258 Cr. 299390/10859.6 18.50.22 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 52.6 Cr. 70.992.8/19.636.0 9.580.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 25.9 Cr. 17.718.8/7.6033.6 6.640.00 %4.06 %3.33 % 10.0
Godavari Drugs Ltd 89.3 Cr. 119155/82.113.9 51.80.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 12,789 Cr. 1,0411,335/60930.2 2072.16 %28.1 %21.1 % 2.00
Industry Average20,157.62 Cr1,260.1159.25188.430.31%16.78%15.93%6.64

All Competitor Stocks of Zota Health Care Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales33353131293935373945475056
Expenses29312631283435363741445158
Operating Profit55501501143-1-1
OPM %15%14%16%0%5%12%0%3%3%10%7%-3%-2%
Other Income0001011100000
Interest0000011111123
Depreciation1112233435578
Profit before tax545-1-02-3-3-3-1-3-10-12
Tax %26%26%26%1%119%58%-4%-15%1%49%7%-27%5%
Net Profit333-1-11-3-3-3-2-3-7-13
EPS in Rs1.371.281.33-0.40-0.330.36-1.28-1.05-1.13-0.64-1.14-2.68-4.79

Last Updated: October 7, 2024, 8:50 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:13 pm

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales253850568595106131139180198
Expenses213343477790105116132173193
Operating Profit456885115785
OPM %14%13%13%15%9%5%1%11%5%4%3%
Other Income00002222211
Interest01110000357
Depreciation01121234122025
Profit before tax335684-012-5-16-26
Tax %34%33%33%33%29%29%-41%28%23%-11%
Net Profit223463-09-6-14-24
EPS in Rs2.171.431.852.122.261.12-0.093.54-2.29-5.55-9.25
Dividend Payout %-0%50%38%34%32%90%-1,170%42%-44%-18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2011-20122014-20152019-20202020-20212022-20232023-2024
YoY Net Profit Growth (%)0.00%33.33%-50.00%-100.00%-166.67%-133.33%
Change in YoY Net Profit Growth (%)0.00%33.33%-83.33%-50.00%-66.67%33.33%

Zota Health Care Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2011-2012 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:16%
3 Years:19%
TTM:33%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-191%
Stock Price CAGR
10 Years:%
5 Years:27%
3 Years:17%
1 Year:40%
Return on Equity
10 Years:%
5 Years:-3%
3 Years:-5%
Last Year:-17%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital7101214182525252526
Reserves5344514442645564
Borrowings3655000154595
Other Liabilities5101417212019353343
Total Liabilities20293540908885139158228
Fixed Assets810981015142962103
CWIP0000200035
Investments00001614103385
Other Assets121926326359617785116
Total Assets20293540908885139158228

Reserves and Borrowings Chart

Cash Flow

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 35-36-113-2-6
Cash from Investing Activity -1-19-44-2715-13
Cash from Financing Activity -2-4-6-3-214-1419
Net Cash Flow00-1-111-1-0

Free Cash Flow

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow1.00-1.001.003.008.005.001.000.00-38.00-87.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days7571797795112991027355
Inventory Days122141134175208139140121183201
Days Payable779000104827778116126
Cash Conversion Cycle120123212251199169161145140131
Working Capital Days1028986100175152143115135140
ROCE %20%32%6%-2%15%-2%-7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters68.09%68.11%68.12%68.12%68.12%68.12%68.12%66.16%66.15%66.15%64.44%62.40%
FIIs0.00%0.00%0.00%0.07%0.00%0.00%0.04%0.02%0.00%0.00%0.01%0.01%
DIIs0.34%0.30%0.45%0.05%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.99%
Public31.57%31.59%31.43%31.75%31.88%31.88%31.84%33.83%33.85%33.85%35.55%36.60%
No. of Shareholders7,2557,8178,1497,8667,9567,2337,1077,2857,5897,4357,6618,937

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-5.59-2.293.58-0.091.12
Diluted EPS (Rs.)-5.47-2.293.58-0.091.12
Cash EPS (Rs.)2.222.465.001.211.97
Book Value[Excl.RevalReserv]/Share (Rs.)34.8131.9435.6226.9928.02
Book Value[Incl.RevalReserv]/Share (Rs.)34.8131.9435.6226.9928.02
Revenue From Operations / Share (Rs.)69.8355.6352.1443.4838.73
PBDIT / Share (Rs.)3.373.696.530.762.45
PBIT / Share (Rs.)-4.40-1.065.07-0.521.60
PBT / Share (Rs.)-6.25-1.864.94-0.141.57
Net Profit / Share (Rs.)-5.55-2.293.54-0.081.12
NP After MI And SOA / Share (Rs.)-5.55-2.293.54-0.081.12
PBDIT Margin (%)4.826.6312.521.766.33
PBIT Margin (%)-6.30-1.909.72-1.204.13
PBT Margin (%)-8.95-3.359.47-0.344.06
Net Profit Margin (%)-7.94-4.126.78-0.192.88
NP After MI And SOA Margin (%)-7.94-4.126.78-0.192.88
Return on Networth / Equity (%)-15.94-7.189.93-0.313.98
Return on Capital Employeed (%)-7.35-2.2612.36-1.905.62
Return On Assets (%)-6.28-3.656.40-0.243.09
Total Debt / Equity (X)0.160.000.000.000.00
Asset Turnover Ratio (%)0.930.941.251.231.07
Current Ratio (X)1.512.082.143.363.17
Quick Ratio (X)0.781.051.331.811.80
Inventory Turnover Ratio (X)0.260.490.710.750.45
Dividend Payout Ratio (NP) (%)0.00-65.3728.24-1175.6889.57
Dividend Payout Ratio (CP) (%)0.0061.0220.0082.9750.75
Earning Retention Ratio (%)0.00165.3771.761275.6810.43
Cash Earning Retention Ratio (%)0.0038.9880.0017.0349.25
Interest Coverage Ratio (X)1.823.6251.2217.1686.87
Interest Coverage Ratio (Post Tax) (X)-2.00-1.4628.78-10.2740.51
Enterprise Value (Cr.)1240.13707.78746.47338.81319.06
EV / Net Operating Revenue (X)6.875.065.693.173.35
EV / EBITDA (X)142.3776.1745.44179.8152.92
MarketCap / Net Operating Revenue (X)6.805.075.713.193.36
Retention Ratios (%)0.00165.3771.751275.6810.42
Price / BV (X)13.638.828.355.134.65
Price / Net Operating Revenue (X)6.805.075.713.193.36
EarningsYield-0.01-0.010.010.000.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Zota Health Care Ltd as of November 6, 2024 is: 87.85

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 6, 2024, Zota Health Care Ltd is Overvalued by 84.96% compared to the current share price ₹584.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Zota Health Care Ltd as of November 6, 2024 is: 55.25

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 6, 2024, Zota Health Care Ltd is Overvalued by 90.54% compared to the current share price ₹584.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -37.10%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (33.60 cr) compared to borrowings (17.40 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of 6.20%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 123.70, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 165.10, which may not be favorable.
  4. The company has not shown consistent growth in sales (100.27) and profit (-0.55).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Zota Health Care Ltd:
    1. Net Profit Margin: -7.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -7.35% (Industry Average ROCE: 16.78%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -15.94% (Industry Average ROE: 15.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -2
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.78
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 59.25)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.16
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Zota Healthcare Ltd. is a Public Limited Listed company incorporated on 12/07/2000 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24231GJ2000PLC038352 and registration number is 038352. Currently Company is involved in the business activities of Wholesale of pharmaceutical and medical goods. Company’s Total Operating Revenue is Rs. 131.53 Cr. and Equity Capital is Rs. 25.16 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsZota House, 2/896, Surat Gujarat 395002info@zotahealthcare.com
http://www.zotahealthcare.com
Management
NamePosition Held
Mr. Ketankumar Chandulal ZotaNon Executive Chairman
Mr. Moxesh Ketanbhai ZotaManaging Director
Mr. Kamlesh Rajnikant ZotaWhole Time Director
Mr. Himanshu Muktilal ZotaWhole Time Director
Mr. Viren Manukant ZotaWhole Time Director
Mr. Laxmi Kant SharmaExecutive Director
Mrs. Jaysheeben Nileshkumar MehtaInd. Non-Executive Director
Mrs. Bhumi Maulik DoshiInd. Non-Executive Director
Dr.(Mrs.) Varsaben Gaurang MehtaInd. Non-Executive Director
CA. Dhaval Chandubhai PatwaInd. Non-Executive Director
CA. Vitrag Sureshkumar ModiInd. Non-Executive Director
Dr. Dhiren Prafulbhai ShahInd. Non-Executive Director

FAQ

What is the latest fair value of Zota Health Care Ltd?

The latest fair value of Zota Health Care Ltd is ₹87.85.

What is the Market Cap of Zota Health Care Ltd?

The Market Cap of Zota Health Care Ltd is 1,601 Cr..

What is the current Stock Price of Zota Health Care Ltd as on 06 November 2024?

The current stock price of Zota Health Care Ltd as on 06 November 2024 is 584.

What is the High / Low of Zota Health Care Ltd stocks in FY 2024?

In FY 2024, the High / Low of Zota Health Care Ltd stocks is 725/398.

What is the Stock P/E of Zota Health Care Ltd?

The Stock P/E of Zota Health Care Ltd is .

What is the Book Value of Zota Health Care Ltd?

The Book Value of Zota Health Care Ltd is 34.8.

What is the Dividend Yield of Zota Health Care Ltd?

The Dividend Yield of Zota Health Care Ltd is 0.17 %.

What is the ROCE of Zota Health Care Ltd?

The ROCE of Zota Health Care Ltd is 7.32 %.

What is the ROE of Zota Health Care Ltd?

The ROE of Zota Health Care Ltd is 16.8 %.

What is the Face Value of Zota Health Care Ltd?

The Face Value of Zota Health Care Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Zota Health Care Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE