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 average quality company, based on a somewhat consistent 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 8.92%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Zydus Wellness Ltd?

Zydus Wellness Ltd Return on capital employed is 6.43% for FY-2025, which is above its 5-year historical median of 5.77%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Zydus Wellness Ltd?

Zydus Wellness Ltd Return on Asset is 5.65%, which is in line with its 5-year historical median of 5.48%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Zydus Wellness Ltd?

Zydus Wellness Ltd Return on equity is 6.29% for FY-2025, which is in line with its 5-year historical median of 6.23%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Zydus Wellness Ltd?

Zydus Wellness Ltd Cash conversion cycle is 38 days, above its 5-year historical median of 24 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.48	0.43
ROE	6.29	6.23
ROCE	6.43	5.77
Cash Conversion Cycle	38 days	24 days

Q.6 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 in line with its 5-year median of 13.4%, indicating stable margins.

Q.7 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.8 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	5-year Historic Median
Gross Profit Margin	13	13.4
Operating Profit Margin	14.01	14.97
Net Profit Margin	12.81	12.81

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 0.59, 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.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zydus Wellness Ltd?

Promoters hold 69.64% 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 10.95%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	16.4	11
Gross Profit Growth	27.9	12
Operating Profit Growth	23.1	NAN
Net Profit Growth	30	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.48	1.33
ROE	6.29	9.91
ROCE	6.43	11.48
Cash Conversion Cycle (days)	37.9	62

Valuation & price assessment

Q.1 Stock return of Zydus Wellness Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	13.1%	4.4%	18.9%	47.7%

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 compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	78.1	37.00	26.64
Price to Book	2.85	2.19	2.52
Price to Sales	4.79	4.72	1.43
EV to EBITDA	43.82	33.77	14.44

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