Fundamental Analysis of Zydus Wellness Ltd

About the Company - Zydus Wellness Ltd

Zydus Wellness Ltd. is a Public Limited Listed company incorporated on 01/11/1994 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L15201GJ1994PLC023490 and registration number is 023490. Currently company belongs to the Industry of Personal Care. Company’s Total Operating Revenue is Rs. 216.25 Cr. and Equity Capital is Rs. 63.63 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Food Processing - Bakery/Dairy/Fruits/Others	Zydus Corporate Park, Scheme No. 63, Survey No. 536 Ahmedabad Gujarat 382481	investor.grievance@zyduswellness.com http://www.zyduswellness.in

Management
Name	Position Held
Dr. Sharvil P Patel	Chairman
Mr. Tarun G Arora	WholeTime Director & CEO
Mr. Kulin S Lalbhai	Independent Director
Mr. Savyasachi S Sengupta	Independent Director
Ms. Dharmishtaben N Raval	Independent Director
Mr. Srivishnu Raju Nandyala	Independent Director
Mr. Ashish P Bhargava	Nominee Director
Mr. Ganesh N Nayak	Non Executive Director
Mr. Akhil A Monappa	Independent Director

Basic Stock Data of Zydus Wellness Ltd

Last Updated: July 5, 2024, 11:05 pm

Market Cap	13,479 Cr.
Current Price	2,118
High / Low	2,135/1,425
Stock P/E	48.0
Book Value	842
Dividend Yield	0.24 %
ROCE	5.37 %
ROE	5.36 %
Face Value	10.0
PEG Ratio	4.42

Competitors of Zydus Wellness Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Dabur India Ltd	1,07,482 Cr.	606	634/489	59.3	55.7	0.91 %	22.3 %	19.2 %	1.00
Colgate-Palmolive (India) Ltd	79,161 Cr.	2,910	3,069/1,752	59.2	68.9	1.65 %	96.8 %	74.5 %	1.00
Procter & Gamble Hygiene and Health Care Ltd	53,931 Cr.	16,614	19,250/14,211	72.4	324	0.63 %	101 %	80.6 %	10.0
Kaya Ltd	718 Cr.	549	552/267		174	0.00 %	85.4 %	%	10.0
Ador Multi Products Ltd	15.3 Cr.	32.7	52.6/29.1		23.6	0.00 %	37.6 %	28.3 %	10.0
Industry Average	82,802.29 Cr	2,897.75		78.13	140.74	0.61%	41.94%	26.29%	5.91

Zydus Wellness Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	381.58	605.73	597.58	383.65	388.09	639.78	696.40	429.10	416.40	713.00	702.10	439.90	403.20
Expenses	332.05	460.37	457.16	353.11	355.80	498.28	548.30	412.90	388.10	568.40	585.60	423.10	390.50
Operating Profit	49.53	145.36	140.42	30.54	32.29	141.50	148.10	16.20	28.30	144.60	116.50	16.80	12.70
OPM %	12.98%	24.00%	23.50%	7.96%	8.32%	22.12%	21.27%	3.78%	6.80%	20.28%	16.59%	3.82%	3.15%
Other Income	-31.66	1.79	2.39	3.36	2.69	1.96	-0.90	1.40	0.80	-6.50	-11.80	4.10	3.40
Interest	9.87	8.50	6.42	6.69	6.42	5.98	4.10	3.00	3.80	5.20	5.10	6.50	6.30
Depreciation	6.26	5.99	5.59	6.11	5.84	6.08	6.10	6.40	5.90	6.60	6.20	5.80	6.10
Profit before tax	1.74	132.66	130.80	21.10	22.72	131.40	137.00	8.20	19.40	126.30	93.40	8.60	3.70
Tax %	0.00%	-0.35%	0.00%	-1.75%	-2.55%	-1.45%	0.00%	-3.66%	-1.03%	-15.04%	-18.20%	31.40%	91.89%
Net Profit	1.74	133.13	130.80	21.47	23.30	133.30	137.00	8.50	19.60	145.30	110.40	5.90	0.30
EPS in Rs	0.27	20.92	20.56	3.37	3.66	20.95	21.53	1.34	3.08	22.83	17.35	0.93	0.05

Last Updated: June 3, 2024, 6:48 pm

Zydus Wellness Ltd Quarterly Chart

Zydus Wellness Ltd Profit & Loss

Last Updated: May 30, 2024, 2:55 am

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	337	388	404	431	397	431	513	843	1,767	1,867	2,009	2,255	2,258
Expenses	259	291	319	331	305	331	387	658	1,446	1,522	1,664	1,918	1,968
Operating Profit	77	97	85	100	91	99	125	185	321	344	345	337	291
OPM %	23%	25%	21%	23%	23%	23%	24%	22%	18%	18%	17%	15%	13%
Other Income	9	16	19	28	32	32	35	28	-33	-123	10	-5	-11
Interest	0	0	0	0	0	1	2	30	140	84	26	16	23
Depreciation	4	4	0	8	7	7	9	13	26	25	24	25	25
Profit before tax	82	108	104	120	117	124	150	171	121	112	306	291	232
Tax %	17%	8%	5%	7%	10%	10%	9%	-0%	-17%	-6%	-1%	-7%
Net Profit	69	99	98	111	105	111	137	171	142	119	309	310	262
EPS in Rs	17.32	24.85	24.69	27.88	26.43	27.89	34.27	29.33	24.58	18.66	48.54	48.78	41.16
Dividend Payout %	29%	24%	24%	22%	25%	23%	23%	17%	20%	27%	10%	10%

Zydus Wellness Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2012-2013	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
YoY Net Profit Growth (%)	43.48%	-1.01%	13.27%	-5.41%	5.71%	23.42%	24.82%	-16.96%	-16.20%	159.66%	0.32%
Change in YoY Net Profit Growth (%)	0.00%	-44.49%	14.28%	-18.67%	11.12%	17.71%	1.39%	-41.78%	0.76%	175.86%	-159.34%

Zydus Wellness Ltd Growth

Compounded Sales Growth
10 Years:	19%
5 Years:	23%
3 Years:	8%
TTM:	3%

Compounded Profit Growth
10 Years:	11%
5 Years:	12%
3 Years:	4%
TTM:	-12%

Stock Price CAGR
10 Years:	12%
5 Years:	7%
3 Years:	-4%
1 Year:	24%

Return on Equity
10 Years:	7%
5 Years:	6%
3 Years:	6%
Last Year:	5%

Last Updated: June 17, 2024, 3:14 pm

Zydus Wellness Ltd Balance Sheet

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	39	39	39	39	39	39	39	58	58	64	64	64	64
Reserves	148	217	286	367	439	518	652	3,329	3,403	4,504	4,780	5,059	5,143
Borrowings	0	0	0	0	0	25	25	1,569	1,519	550	387	297	352
Other Liabilities	80	93	99	102	89	100	112	503	610	548	461	413	272
Total Liabilities	267	349	425	508	568	682	829	5,459	5,590	5,666	5,692	5,833	5,831
Fixed Assets	96	94	95	84	82	103	104	4,567	4,674	4,667	4,710	4,732	4,734
CWIP	0	0	0	0	0	0	0	10	4	4	12	13	15
Investments	0	0	5	0	94	30	148	46	110	0	27	70	64
Other Assets	171	255	324	423	391	550	577	835	802	995	943	1,018	1,018
Total Assets	267	349	425	508	568	682	829	5,459	5,590	5,666	5,692	5,833	5,831

Zydus Wellness Ltd Reserves and Borrowings Chart

Zydus Wellness Ltd Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	62	69	91	69	90	77	69	149	259	287	237	92
Cash from Investing Activity	-2	13	13	29	-28	-72	-59	-4,092	-17	-10	-59	-85
Cash from Financing Activity	-18	-23	-27	-27	-58	-6	-2	4,052	-260	-216	-234	-138
Net Cash Flow	42	59	77	71	4	-1	8	109	-18	60	-56	-132

Zydus Wellness Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	1	1	2	1	3	3	6	42	24	18	26	34
Inventory Days	104	120	108	76	73	127	113	393	168	158	135	146
Days Payable	159	136	191	146	191	264	254	662	289	189	136	100
Cash Conversion Cycle	-54	-14	-82	-69	-116	-134	-135	-227	-97	-13	25	80
Working Capital Days	-42	-32	-48	-37	-38	-36	-8	4	-3	12	31	65
ROCE %	50%	48%	35%	32%	26%	23%	22%	7%	6%	6%	6%	6%

Zydus Wellness Ltd Financial Efficiency Indicators Chart

Zydus Wellness Ltd Share Holding Pattern

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Promoters	64.82%	64.82%	64.82%	64.82%	64.82%	65.14%	65.36%	65.36%	66.45%	67.11%	68.54%	69.15%
FIIs	2.76%	2.96%	2.94%	3.39%	2.56%	2.38%	3.24%	3.83%	3.87%	3.23%	3.42%	3.25%
DIIs	24.96%	24.76%	25.49%	24.80%	25.11%	25.11%	23.78%	23.35%	22.18%	22.04%	20.22%	19.67%
Public	7.46%	7.46%	6.75%	6.99%	7.51%	7.37%	7.62%	7.46%	7.51%	7.62%	7.81%	7.91%
No. of Shareholders	48,178	58,035	55,513	59,823	67,208	66,845	70,709	68,969	70,790	73,029	76,590	75,369

Zydus Wellness Ltd Shareholding Pattern Chart

No. of Zydus Wellness Ltd Shareholders

Zydus Wellness Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Nippon India Small Cap Fund	2,221,106	0.78	358.7	1,034,243	2024-07-05	114.76%
SBI Small Cap Fund	1,034,243	0.67	167.03	1,034,243	2024-07-05	0%
ICICI Prudential Value Discovery Fund	843,482	0.35	136.22	1,034,243	2024-07-05	-18.44%
ICICI Prudential Multicap Fund	243,627	0.37	39.34	1,034,243	2024-07-05	-76.44%
Tata India Consumer Fund	229,000	2.01	36.98	1,034,243	2024-07-05	-77.86%
Aditya Birla Sun Life India GenNext Fund	156,780	0.55	25.32	1,034,243	2024-07-05	-84.84%
Tata Flexi Cap Fund	140,000	0.85	22.61	1,034,243	2024-07-05	-86.46%
ICICI Prudential Bharat Consumption Fund	117,165	0.86	18.92	1,034,243	2024-07-05	-88.67%
ICICI Prudential FMCG Fund - Dividend	88,783	0.96	14.34	1,034,243	2024-07-05	-91.42%
ICICI Prudential FMCG Fund - Growth	88,783	0.96	14.34	1,034,243	2024-07-05	-91.42%

Zydus Wellness Ltd ROCE Trend

Zydus Wellness Ltd EPS Trend

Zydus Wellness Ltd Key Financial Ratios

Month	Mar 23	Mar 22	Mar 21	Mar 20	Mar 19
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	48.78	48.54	19.55	24.58	40.10
Diluted EPS (Rs.)	48.78	48.54	19.55	24.58	40.10
Cash EPS (Rs.)	52.71	52.25	22.61	29.16	31.87
Book Value[Excl.RevalReserv]/Share (Rs.)	805.07	761.28	717.87	600.18	587.28
Book Value[Incl.RevalReserv]/Share (Rs.)	805.07	761.28	717.87	600.18	587.28
Revenue From Operations / Share (Rs.)	354.36	315.75	293.36	306.42	146.17
PBDIT / Share (Rs.)	53.75	55.81	55.52	57.54	38.79
PBIT / Share (Rs.)	49.82	52.10	51.57	52.96	36.62
PBT / Share (Rs.)	45.71	48.09	17.63	21.03	29.59
Net Profit / Share (Rs.)	48.78	48.54	18.66	24.58	29.70
NP After MI And SOA / Share (Rs.)	48.78	48.54	18.66	24.58	29.33
PBDIT Margin (%)	15.16	17.67	18.92	18.77	26.53
PBIT Margin (%)	14.05	16.50	17.57	17.28	25.05
PBT Margin (%)	12.89	15.23	6.01	6.86	20.24
Net Profit Margin (%)	13.76	15.37	6.36	8.02	20.31
NP After MI And SOA Margin (%)	13.76	15.37	6.36	8.02	20.06
Return on Networth / Equity (%)	6.05	6.37	2.59	4.09	4.99
Return on Capital Employeed (%)	6.16	6.73	6.70	6.13	4.29
Return On Assets (%)	5.32	5.42	2.09	2.53	3.09
Long Term Debt / Equity (X)	0.00	0.01	0.06	0.43	0.44
Total Debt / Equity (X)	0.05	0.07	0.12	0.43	0.46
Asset Turnover Ratio (%)	0.05	0.04	0.02	0.02	0.08
Current Ratio (X)	1.31	1.06	1.10	1.26	1.28
Quick Ratio (X)	0.65	0.58	0.62	0.78	0.85
Inventory Turnover Ratio (X)	0.89	0.78	0.54	0.80	4.64
Dividend Payout Ratio (NP) (%)	10.25	10.30	0.00	40.69	18.48
Dividend Payout Ratio (CP) (%)	9.48	9.57	0.00	34.30	17.20
Earning Retention Ratio (%)	89.75	89.70	0.00	59.31	81.52
Cash Earning Retention Ratio (%)	90.52	90.43	0.00	65.70	82.80
Interest Coverage Ratio (X)	21.27	13.92	4.22	2.37	7.43
Interest Coverage Ratio (Post Tax) (X)	20.93	13.11	3.99	2.33	7.04
Enterprise Value (Cr.)	10116.33	9760.97	12849.96	8915.13	8891.82
EV / Net Operating Revenue (X)	4.49	4.86	6.88	5.05	10.55
EV / EBITDA (X)	29.58	27.48	36.37	26.87	39.75
MarketCap / Net Operating Revenue (X)	4.37	4.75	6.72	4.23	8.88
Retention Ratios (%)	89.74	89.69	0.00	59.30	81.51
Price / BV (X)	1.93	1.97	2.75	2.16	2.21
Price / Net Operating Revenue (X)	4.37	4.75	6.72	4.23	8.88
EarningsYield	0.03	0.03	0.01	0.01	0.02

Zydus Wellness Ltd Profitability Ratios (%)

Zydus Wellness Ltd Liquidity Ratios

Zydus Wellness Ltd Liquidity Ratios (%)

Zydus Wellness Ltd Interest Coverage Ratios (X)

Zydus Wellness Ltd Valuation Ratios

Fair Value

Fair Value: 2,171.50

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.

Undervalued: 2.53% compared to the current price 2118

Intrinsic Value: 2,407.34

Calculation basis:

Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 13.66% compared to the current price ₹2118

Last 5 Year EPS CAGR: 10.86%

*Investments are subject to market risks

Strength and Weakness of Zydus Wellness Ltd

Strength	Weakness
The stock has a high average ROCE of 22.25%, which is a positive sign. The stock has a low average Working Capital Days of -11.00, which is a positive sign. The stock has a low average Cash Conversion Cycle of -69.67, which is a positive sign. The company has higher reserves (2,218.85 cr) compared to borrowings (363.38 cr), indicating strong financial stability. The company has shown consistent growth in sales (288.62 cr) and profit (156.77 cr) over the years.

Strength

Weakness

The stock has a high average ROCE of 22.25%, which is a positive sign.
The stock has a low average Working Capital Days of -11.00, which is a positive sign.
The stock has a low average Cash Conversion Cycle of -69.67, which is a positive sign.
The company has higher reserves (2,218.85 cr) compared to borrowings (363.38 cr), indicating strong financial stability.
The company has shown consistent growth in sales (288.62 cr) and profit (156.77 cr) over the years.

Should I Buy Zydus Wellness Ltd Share Now?

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 Zydus Wellness Ltd:
1. ✓ Net Profit Margin: 13.76%
  - 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: 6.16% (Industry Average ROCE: 47.41%)
  - 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%: 6.05% (Industry Average ROE: 23.85%)
  - 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): 20.93
  - 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: 0.65
  - 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: 48.0 (Industry average Stock P/E: 44.36)
  - 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: 0.05
  - 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: ★★☆☆☆

FAQ

What is the latest fair value of Zydus Wellness Ltd?

The latest fair value of Zydus Wellness Ltd is ₹2171.50.

What is the Market Cap of Zydus Wellness Ltd?

The Market Cap of Zydus Wellness Ltd is 13,479 Cr..

What is the current Stock Price of Zydus Wellness Ltd as on 06 July 2024?

The current stock price of Zydus Wellness Ltd as on 06 July 2024 is 2,118.

What is the High / Low of Zydus Wellness Ltd stocks in FY 2024?

In FY 2024, the High / Low of Zydus Wellness Ltd stocks is 2,135/1,425.

What is the Stock P/E of Zydus Wellness Ltd?

The Stock P/E of Zydus Wellness Ltd is 48.0.

What is the Book Value of Zydus Wellness Ltd?

The Book Value of Zydus Wellness Ltd is 842.

What is the Dividend Yield of Zydus Wellness Ltd?

The Dividend Yield of Zydus Wellness Ltd is 0.24 %.

What is the ROCE of Zydus Wellness Ltd?

The ROCE of Zydus Wellness Ltd is 5.37 %.

What is the ROE of Zydus Wellness Ltd?

The ROE of Zydus Wellness Ltd is 5.36 %.

What is the Face Value of Zydus Wellness Ltd?

The Face Value of Zydus Wellness Ltd is 10.0.