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Check Before You Invest : Zydus Wellness Ltd

BSE: 531335 NSE: ZYDUSWELL ISIN: INE768C01028
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Zydus Wellness Ltd belong to?
Zydus Wellness Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Zydus Wellness Ltd a good quality company?
Zydus Wellness Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Zydus Wellness Ltd undervalued or overvalued?
Zydus Wellness Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Zydus Wellness Ltd a good buy now?
Zydus Wellness Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Zydus Wellness Ltd?
Zydus Wellness Ltd revenue growth is 16.4% for FY-2025 , which is above its 5 year CAGR of 8.9% , indicating faster growth.
Q.2 Gross Profit margin of Zydus Wellness Ltd?
Zydus Wellness Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2025 , which is below its 5 year median of 13.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of Zydus Wellness Ltd?
Zydus Wellness Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.01% for FY-2025 , which is below its 5 year median of 14.97% indicating decreasing margins.
Q.4 Net Profit Margin of Zydus Wellness Ltd?
Zydus Wellness Ltd Net Profit Margin is 12.81% for FY-2025 , is in line with with its 5 year median of 12.81%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 13 13.4
Operating Profit Margin 14.01 14.97
Net Profit Margin 12.81 12.81
Q.5 Return on Asset of Zydus Wellness Ltd?
Zydus Wellness Ltd Return on Asset is 5.65(x), which is above its 5 year historical median of 5.48(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Zydus Wellness Ltd?
Zydus Wellness Ltd Return on equity is 6.29% for FY-2025 , which is above its historical median of 6.23%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Zydus Wellness Ltd?
Zydus Wellness Ltd Return on capital employed is 6.43% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Zydus Wellness Ltd?
Zydus Wellness Ltd Cash conversion cycle is 38 , above its historical median of 24 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.48 0.43
ROE 6.29 6.23
ROCE 6.43 5.77
Cash Conversion Cycle 38 24
Q.9 Debt to Equity ratio of Zydus Wellness Ltd?
Zydus Wellness Ltd Debt-to-Equity ratio is 0.03 , which is lower with the industry average of 0.49 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Zydus Wellness Ltd?
Zydus Wellness Ltd Debt to cash flow from operations is 0.49 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zydus Wellness Ltd?
Promoters hold 69.63% of the Zydus Wellness Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zydus Wellness Ltd vs industry peers?
Zydus Wellness Ltd revenue CAGR is 8.92% , compared to the industry median CAGR of 6.97% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,708.9 117.4
Gross Profit 352.2 5
Operating Profit 379 7
Net Profit 347 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.48 1.2
ROE 6.29 7.15
ROCE 6.43 10.41
Cash Conversion Cycle 37.9 51

Valuation & price assessment

Q.1 Stock return of Zydus Wellness Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 13.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 13.6% 4.5% 19% 48.7%
Q.3 Valuation ratios of Zydus Wellness Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 75.1 65.21 51.80
Price to Book 2.75 2.77 2.42
Price to Sales 4.61 5.90 1.42
EV to EBITDA 42.4 36.99 14.55

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