ScoreWhy is Zydus Wellness Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 6.28 times
2
Poor long term growth as Operating profit has grown by an annual rate 2.61% of over the last 5 years
3
Flat results in Mar 26
- INTEREST(Latest six months) At Rs 79.90 cr has Grown at 339.01%
- PAT(Latest six months) At Rs 128.70 cr has Grown at -27.82%
- DEBT-EQUITY RATIO(HY) Highest at 0.55 times
4
With ROCE of 4.1, it has a Expensive valuation with a 2.2 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 31.53%, its profits have fallen by -30.4%
5
High Institutional Holdings at 22.05%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating performance in long term as well as near term
- Along with generating 31.53% 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 hold?
- Overall Portfolio exposure to Zydus Wellness should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zydus Wellness for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Zydus Wellness
31.53%
0.83
37.86%
Sensex
-6.17%
-0.47
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.24%
EBIT Growth (5y)
2.61%
EBIT to Interest (avg)
15.36
Debt to EBITDA (avg)
2.15
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
0.41
Tax Ratio
14.45%
Dividend Payout Ratio
11.00%
Pledged Shares
0
Institutional Holding
22.05%
ROCE (avg)
5.62%
ROE (avg)
5.60%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
71
Industry P/E
46
Price to Book Value
2.89
EV to EBIT
54.96
EV to EBITDA
39.14
EV to Capital Employed
2.24
EV to Sales
5.04
PEG Ratio
NA
Dividend Yield
0.23%
ROCE (Latest)
4.07%
ROE (Latest)
4.09%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
PAT(Q)
At Rs 162.00 cr has Grown at 161.4% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 1,484.70 cr
PBDIT(Q)
Highest at Rs 270.10 cr.
PBT LESS OI(Q)
Highest at Rs 176.10 cr.
-15What is not working for the Company
INTEREST(Latest six months)
At Rs 79.90 cr has Grown at 339.01%
PAT(Latest six months)
At Rs 128.70 cr has Grown at -27.82%
DEBT-EQUITY RATIO(HY)
Highest at 0.55 times
Loading Valuation Snapshot...
Here's what is working for Zydus Wellness
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 176.10 cr has Grown at 169.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 65.35 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 162.00 cr has Grown at 161.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 61.98 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 1,484.70 cr has Grown at 75.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 847.35 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,484.70 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 270.10 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 176.10 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Zydus Wellness
Interest - Latest six months
At Rs 79.90 cr has Grown at 339.01%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.55 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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