ScoreWhy is Zydus Lifesciences Ltd ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Net Sales has grown by an annual rate of 12.37% and Operating profit at 22.94%
- Company has a Debt to Equity ratio (avg) of 0.05 times
- The company has been able to generate a Return on Equity (avg) of 17.34% signifying high profitability per unit of shareholders funds
2
With ROCE of 23.7, it has a Fair valuation with a 3.8 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 21.99%, its profits have risen by 14.4% ; the PEG ratio of the company is 1.4
3
Majority shareholders : Promoters
4
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
5
Market Beating performance in long term as well as near term
- Along with generating 21.99% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Zydus Lifesci. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zydus Lifesci. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Zydus Lifesci.
22.18%
1.03
21.34%
Sensex
-7.88%
-0.61
13.01%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.37%
EBIT Growth (5y)
22.94%
EBIT to Interest (avg)
32.74
Debt to EBITDA (avg)
0.71
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
0.85
Tax Ratio
25.62%
Dividend Payout Ratio
7.82%
Pledged Shares
0
Institutional Holding
18.15%
ROCE (avg)
20.77%
ROE (avg)
17.34%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
35
Price to Book Value
4.05
EV to EBIT
15.21
EV to EBITDA
13.06
EV to Capital Employed
3.77
EV to Sales
4.03
PEG Ratio
1.37
Dividend Yield
1.08%
ROCE (Latest)
23.72%
ROE (Latest)
20.19%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
NET SALES(Q)
Highest at Rs 7,587.00 cr
PBDIT(Q)
Highest at Rs 2,554.40 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 33.67%
PBT LESS OI(Q)
Highest at Rs 1,923.00 cr.
PAT(Q)
Highest at Rs 1,593.74 cr.
-10What is not working for the Company
INTEREST(Latest six months)
At Rs 252.90 cr has Grown at 35.97%
ROCE(HY)
Lowest at 19.13%
DEBT-EQUITY RATIO(HY)
Highest at 0.46 times
Loading Valuation Snapshot...
Here's what is working for Zydus Lifesci.
Net Sales - Quarterly
Highest at Rs 7,587.00 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 2,554.40 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 33.67%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 1,923.00 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1,593.74 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Zydus Lifesci.
Interest - Latest six months
At Rs 252.90 cr has Grown at 35.97%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.46 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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