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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 531335 | NSE: ZYDUSWELL

Zydus Wellness Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:26 pm

Market Cap 12,372 Cr.
Current Price 1,944
High / Low2,484/1,440
Stock P/E39.4
Book Value 863
Dividend Yield0.26 %
ROCE5.33 %
ROE5.32 %
Face Value 10.0
PEG Ratio3.63

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

View Share Price Target for Zydus Wellness Ltd

Competitors of Zydus Wellness Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ICL Organic Dairy Products Ltd 23.8 Cr. 39.741.8/39.71,192 20.10.00 %0.25 %0.17 % 10.0
Himalaya Food International Ltd 117 Cr. 20.229.9/18.018.7 24.40.00 %3.63 %3.61 % 10.0
Goldcoin Health Foods Ltd 3.37 Cr. 11.213.6/5.80 3.430.00 %18.4 %24.2 % 10.0
Galaxy Cloud Kitchens Ltd 274 Cr. 61.167.5/12.2 4.780.00 %%% 10.0
Foods & Inns Ltd 832 Cr. 114179/11030.6 70.20.26 %16.1 %12.3 % 1.00
Industry Average18,239.43 Cr913.58200.45130.350.20%18.91%18.90%6.26

All Competitor Stocks of Zydus Wellness Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales598384388640696429416713702440403783841
Expenses457353356498548413388568586423390620686
Operating Profit140313214214816281451161713162155
OPM %24%8%8%22%21%4%7%20%17%4%3%21%18%
Other Income2332-111-6-124345
Interest6766434556664
Depreciation6666666766665
Profit before tax13121231311378191269394154152
Tax %0%-2%-3%-1%0%-4%-1%-15%-18%31%92%3%3%
Net Profit131212313313782014511060150148
EPS in Rs20.563.373.6620.9521.531.343.0822.8317.350.930.0523.6223.21

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3373884044313974315138431,7671,8672,0092,2552,258
Expenses2592913193313053313876581,4461,5221,6641,9181,968
Operating Profit7797851009199125185321344345337291
OPM %23%25%21%23%23%23%24%22%18%18%17%15%13%
Other Income916192832323528-33-12310-5-11
Interest00000123014084261623
Depreciation4408779132625242525
Profit before tax82108104120117124150171121112306291232
Tax %17%8%5%7%10%10%9%-0%-17%-6%-1%-7%
Net Profit699998111105111137171142119309310262
EPS in Rs17.3224.8524.6927.8826.4327.8934.2729.3324.5818.6648.5448.7841.16
Dividend Payout %29%24%24%22%25%23%23%17%20%27%10%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
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 has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:19%
5 Years:23%
3 Years:8%
TTM:11%
Compounded Profit Growth
10 Years:11%
5 Years:11%
3 Years:4%
TTM:4%
Stock Price CAGR
10 Years:11%
5 Years:6%
3 Years:-1%
1 Year:24%
Return on Equity
10 Years:7%
5 Years:6%
3 Years:6%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:48 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital39393939393958586464646464
Reserves2172863674395186523,3293,4034,5044,7805,0595,2945,431
Borrowings000025251,5691,519550387297329154
Other Liabilities939910289100112503610548461413462359
Total Liabilities3494255085686828295,4595,5905,6665,6925,8336,1486,008
Fixed Assets949584821031044,5674,6744,6674,7104,7324,7084,703
CWIP000000104412131017
Investments0509430148461100277078367
Other Assets2553244233915505778358029959431,0181,354921
Total Assets3494255085686828295,4595,5905,6665,6925,8336,1486,008

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +69916990776914925928723792246
Cash from Investing Activity +131329-28-72-59-4,092-17-10-59-85-19
Cash from Financing Activity +-23-27-27-58-6-24,052-260-216-234-138-26
Net Cash Flow5977714-18109-1860-56-132201

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow77.0097.0085.00100.0091.0074.00100.00184.00320.00-206.00-42.0040.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days121336422418263444
Inventory Days1201087673127113393168158135146150
Days Payable136191146191264254662289189136100116
Cash Conversion Cycle-14-82-69-116-134-135-227-97-13258078
Working Capital Days-32-48-37-38-36-84-312316571
ROCE %48%35%32%26%23%22%7%6%6%6%6%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters64.82%64.82%64.82%65.14%65.36%65.36%66.45%67.11%68.54%69.15%69.62%69.62%
FIIs2.94%3.39%2.56%2.38%3.24%3.83%3.87%3.23%3.42%3.25%3.26%3.29%
DIIs25.49%24.80%25.11%25.11%23.78%23.35%22.18%22.04%20.22%19.67%19.41%19.44%
Public6.75%6.99%7.51%7.37%7.62%7.46%7.51%7.62%7.81%7.91%7.71%7.65%
No. of Shareholders55,51359,82367,20866,84570,70968,96970,79073,02976,59075,36969,13863,973

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund2,221,1060.78358.71,034,2432024-11-20114.76%
SBI Small Cap Fund1,034,2430.67167.031,034,2432024-11-200%
ICICI Prudential Value Discovery Fund843,4820.35136.221,034,2432024-11-20-18.44%
ICICI Prudential Multicap Fund243,6270.3739.341,034,2432024-11-20-76.44%
Tata India Consumer Fund229,0002.0136.981,034,2432024-11-20-77.86%
Aditya Birla Sun Life India GenNext Fund156,7800.5525.321,034,2432024-11-20-84.84%
Tata Flexi Cap Fund140,0000.8522.611,034,2432024-11-20-86.46%
ICICI Prudential Bharat Consumption Fund117,1650.8618.921,034,2432024-11-20-88.67%
ICICI Prudential FMCG Fund - Dividend88,7830.9614.341,034,2432024-11-20-91.42%
ICICI Prudential FMCG Fund - Growth88,7830.9614.341,034,2432024-11-20-91.42%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)41.9448.7848.5419.5524.58
Diluted EPS (Rs.)41.9448.7848.5419.5524.58
Cash EPS (Rs.)45.7152.7152.2522.6129.16
Book Value[Excl.RevalReserv]/Share (Rs.)842.37805.07761.28717.87600.18
Book Value[Incl.RevalReserv]/Share (Rs.)842.37805.07761.28717.87600.18
Revenue From Operations / Share (Rs.)366.01354.36315.75293.36306.42
PBDIT / Share (Rs.)50.6453.7555.8155.5257.54
PBIT / Share (Rs.)46.9049.8252.1051.5752.96
PBT / Share (Rs.)40.9045.7148.0917.6321.03
Net Profit / Share (Rs.)41.9748.7848.5418.6624.58
NP After MI And SOA / Share (Rs.)41.9748.7848.5418.6624.58
PBDIT Margin (%)13.8315.1617.6718.9218.77
PBIT Margin (%)12.8114.0516.5017.5717.28
PBT Margin (%)11.1712.8915.236.016.86
Net Profit Margin (%)11.4613.7615.376.368.02
NP After MI And SOA Margin (%)11.4613.7615.376.368.02
Return on Networth / Equity (%)4.986.056.372.594.09
Return on Capital Employeed (%)5.546.166.736.706.13
Return On Assets (%)4.345.325.422.092.53
Long Term Debt / Equity (X)0.000.000.010.060.43
Total Debt / Equity (X)0.060.050.070.120.43
Asset Turnover Ratio (%)0.380.050.040.020.02
Current Ratio (X)1.621.311.061.101.26
Quick Ratio (X)1.020.650.580.620.78
Inventory Turnover Ratio (X)2.240.890.780.540.80
Dividend Payout Ratio (NP) (%)11.9110.2510.300.0040.69
Dividend Payout Ratio (CP) (%)10.939.489.570.0034.30
Earning Retention Ratio (%)88.0989.7589.700.0059.31
Cash Earning Retention Ratio (%)89.0790.5290.430.0065.70
Interest Coverage Ratio (X)13.4221.2713.924.222.37
Interest Coverage Ratio (Post Tax) (X)12.7120.9313.113.992.33
Enterprise Value (Cr.)9439.4210116.339760.9712849.968915.13
EV / Net Operating Revenue (X)4.054.494.866.885.05
EV / EBITDA (X)29.3129.5827.4836.3726.87
MarketCap / Net Operating Revenue (X)4.024.374.756.724.23
Retention Ratios (%)88.0889.7489.690.0059.30
Price / BV (X)1.751.931.972.752.16
Price / Net Operating Revenue (X)4.024.374.756.724.23
EarningsYield0.020.030.030.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Zydus Wellness Ltd as of November 21, 2024 is: 1,813.62

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 21, 2024, Zydus Wellness Ltd is Overvalued by 6.71% compared to the current share price 1,944.00

Intrinsic Value of Zydus Wellness Ltd as of November 21, 2024 is: 2,010.60

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 21, 2024, Zydus Wellness Ltd is Undervalued by 3.43% compared to the current share price 1,944.00

Last 5 Year EPS CAGR: 10.86%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.50%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -1.58, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -58.67, which is a positive sign.
  4. The company has higher reserves (2,636.85 cr) compared to borrowings (373.46 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (288.62 cr) and profit (156.77 cr) over the years.

    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 Zydus Wellness Ltd:
      1. Net Profit Margin: 11.46%
        • 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: 5.54% (Industry Average ROCE: 18.91%)
        • 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%: 4.98% (Industry Average ROE: 18.9%)
        • 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): 12.71
        • 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: 1.02
        • 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: 39.4 (Industry average Stock P/E: 200.45)
        • 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: 0.06
        • 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

    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.
    INDUSTRYADDRESSCONTACT
    Food Processing - Bakery/Dairy/Fruits/OthersZydus Corporate Park, Ahmedabad Gujarat 382481investor.grievance@zyduswellness.com
    http://www.zyduswellness.com
    Management
    NamePosition Held
    Dr. Sharvil P PatelChairman
    Mr. Tarun G AroraWholeTime Director & CEO
    Mr. Kulin S LalbhaiIndependent Director
    Mr. Ganesh N NayakNon Executive Director
    Mr. Akhil A MonappaIndependent Director
    Mr. Srivishnu Raju NandyalaIndependent Director
    Ms. Dharmishtaben N RavalIndependent Director
    Mr. Ashish P BhargavaNominee Director

    FAQ

    What is the latest intrinsic value of Zydus Wellness Ltd?

    The latest intrinsic value of Zydus Wellness Ltd as on 20 November 2024 is ₹1813.62, which is 6.71% lower than the current market price of ₹1,944.00.

    What is the Market Cap of Zydus Wellness Ltd?

    The Market Cap of Zydus Wellness Ltd is 12,372 Cr..

    What is the current Stock Price of Zydus Wellness Ltd as on 20 November 2024?

    The current stock price of Zydus Wellness Ltd as on 20 November 2024 is ₹1,944.

    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 2,484/1,440.

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

    The Stock P/E of Zydus Wellness Ltd is 39.4.

    What is the Book Value of Zydus Wellness Ltd?

    The Book Value of Zydus Wellness Ltd is 863.

    What is the Dividend Yield of Zydus Wellness Ltd?

    The Dividend Yield of Zydus Wellness Ltd is 0.26 %.

    What is the ROCE of Zydus Wellness Ltd?

    The ROCE of Zydus Wellness Ltd is 5.33 %.

    What is the ROE of Zydus Wellness Ltd?

    The ROE of Zydus Wellness Ltd is 5.32 %.

    What is the Face Value of Zydus Wellness Ltd?

    The Face Value of Zydus Wellness 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 Zydus Wellness 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