Zota Health Care Shares Rated New 'Buy' At Nirmal Bang — Check Target Price, Potential Upside And More

Industry tailwinds—such as rising chronic disease burden, affordability pressures, and government push for generics—reinforce Zota’s positioning as a structural winner in India’s evolving pharmaceutical retail landscape..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.Nirmal Bang has initiated coverage on Zota Health Care Ltd. with a Buy rating and a target price of Rs 1,936, implying an upside of 22% from the current market price of Rs 1,589. The brokerage highlights Zota’s aggressive expansion strategy through its flagship generic pharmacy chain Davaindia, positioning the company as a key beneficiary of India’s affordability-driven healthcare shift..Valuation: Revenue is projected to clock ~77% CAGR over FY25–28E, led by Davaindia (~100% CAGR on account of massive store expansion), with Ebitda turning positive by FY27 as operating leverage improves and store-level profitability strengthens. A planned Rs 4 billion QIP likely in H1 FY27 to support the aggressive rollout (~800 stores/year from FY26-28E). Return ratios are expected to remain negative through FY27E given the long breakeven cycle and would potentially cross into the positive territory by FY28E as ~50% of the network crosses breakeven, driving ROE/ROCE to 5.3%/6.5%..Key risks include execution challenges in adding ~1,400 stores over FY25–26, potential breakeven delays (15–18 months per outlet), intensifying competition from PMBJP(Pradhan Mantri Bharatiya Janaushadhi Prayojana) and private peers (Medkart, Dawa Dost, Netmeds), and regulatory risks on pricing/margins. Supply chain dependence on WHO-GMP partners and imported APIs also remains a sensitivity..Click on the attachment to read the full report:.Mahanagar Gas Shares Can Zoom 38% Says ICICI Securities Maintaining 'Buy' — Check Revised Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Zota Health Care Shares Rated New 'Buy' At Nirmal Bang — Check Target Price, Potential Upside And More

Nirmal Bang initiates coverage on Zota Health with a 'Buy' rating citing strong growth trajectory.

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