Zota Healthcare share price target: Nirmal Bang has retained its Buy rating on small-cap healthcare company Zota Healthcare and set a target price of Rs 1,679 per share. The brokerage expects the stock to gain around 48 per cent from the current market price of Rs 1,135.
The brokerage has, however, lowered its target price from Rs 1,799 earlier to Rs 1,679, while maintaining its Buy recommendation on the stock.
According to Nirmal Bang, Zota Healthcare’s growth outlook remains strong, with the brokerage expecting the company’s revenue to grow at around 60 per cent CAGR during FY26-FY28E.
The brokerage expects growth to be supported by the expansion of the company’s store network, improving operational performance and increasing scale across its network.
For valuation, Nirmal Bang has used a 20x FY30E EV/EBITDA multiple. Based on this valuation approach, the brokerage has arrived at a target price of Rs 1,679 per share.
CMP: Rs1,135 | Target Price: Rs1,679 | Upside: 48 per cent
Zota Healthcare has reported decent revenue growth during the June quarter, with consolidated revenue increasing 67.6 per cent to Rs 1,740 crore.
However, the company’s operating performance remained under pressure during the quarter.
Nirmal Bang also highlighted the performance of Zota Healthcare’s Davaindia business as a key growth driver.
Davaindia’s revenue increased 89.6 per cent to Rs 1,430 crore during the quarter. The company had added 264 new stores, including 201 company-owned, company-operated (COCO) stores and 63 franchise-owned, franchise-operated (FOFO) stores.
Following these additions, Davaindia’s total store network increased to 2,825 stores.
The increase in the store network also supported customer footfalls. Footfall increased from around 3.5 crore to 6 crore, while gross merchandise value (GMV) increased from Rs 900 crore to Rs 1,600 crore during the period.
Zota Healthcare share price
Zota Healthcare was trading at Rs 1,135.00, down 106.30, or 8.56 per cent from the previous close of Rs 1,241.30 on NSE.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
