Why is Zota Health Care falling/rising?
As of 14-Jul, Zota Health Care Ltd's stock price is 1,216.30, up 1.09%. While it has shown strong short-term performance and significant annual returns, concerns about declining operating profits and weak fundamentals suggest potential investment risks.
As of 14-Jul, Zota Health Care Ltd's stock price is currently at 1,216.30, reflecting an increase of 13.1 points or 1.09%. Today's price performance is in line with the sector, and the stock is trading higher than its 20-day, 50-day, 100-day, and 200-day moving averages, although it is lower than the 5-day moving average. Despite a recent decline in investor participation, with delivery volume falling by 28.44% against the 5-day average, the company reported its highest net sales at Rs 97.27 crore and an operating profit to interest ratio of 0.71 times. Over the past year, the stock has generated a remarkable return of 115.64%, outperforming the BSE500 consistently over the last three years, although it has faced challenges with a significant decline in operating profits over the last five years.In the broader market context, Zota Health Care's short-term performance has been relatively strong, with a 1-week return of -5.69% compared to the Sensex's -1.49%, indicating that while the stock has faced some recent pressure, it has still outperformed the benchmark over longer periods, including a 26.24% increase over the past month. However, the stock's long-term fundamentals raise concerns, particularly with a -282.60% CAGR growth in operating profits and a negative EBITDA, which suggest potential risks despite its impressive short-term gains. The company's weak ability to service its debt and low return on equity further complicate its outlook, making it a risky investment despite its recent price rise.
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