Zydus Wellness Ltd - Stock Valuation and Financial Performance

BSE: 531335 | NSE: ZYDUSWELL | Consumer Food | Small Cap

Zydus Wellness Share Price

1,479.90 5.50 0.37%
as on 19-Mar'24 14:25

DeciZen - make an informed investing decision on Zydus Wellness

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Zydus Wellness stock performance -

mw4me loader
P/E Ratio (CD):
35.82
Market Cap:
9,381.9 Cr.
52-wk low:
1,425
52-wk high:
1,720.7

Is Zydus Wellness Ltd an attractive stock to invest in?

1. Is Zydus Wellness Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Zydus Wellness Ltd is a good quality company.

2. Is Zydus Wellness Ltd undervalued or overvalued?

The key valuation ratios of Zydus Wellness Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Zydus Wellness Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Zydus Wellness Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Zydus Wellness:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Zydus Wellness Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 32.8%29.2%22.9%20.1%20%6.5%5.4%5.4%6.3%6.2%-
Value Creation
Index
1.31.10.60.40.5-0.5-0.6-0.6-0.5-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4044313974315138431,7671,8672,0092,2552,247
Sales YoY Gr.-6.7%-7.9%8.5%19.1%64.4%109.6%5.7%7.6%12.2%-
Adj EPS 24.727.826.427.733.528.429.333.248.649.841.2
YoY Gr.-12.2%-5%5.1%20.8%-15.3%3.4%13.2%46.6%2.3%-
BVPS (₹) 83.3103.9122.5142.6176.9587.3600.2717.9761.3805.1818.4
Adj Net
Profit
96.7108103108131164169211310317262
Cash Flow from Ops. 91.169.289.97769.114925928723791.7-
Debt/CF from Ops. 0000.30.410.55.91.91.63.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 21.1%34.5%8.5%12.2%
Adj EPS 8.1%8.3%19.3%2.3%
BVPS28.7%35.4%10.3%5.8%
Share Price 11.5% 2.4% -7.1% 0.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
33.229.723.320.92184.95.36.66.45.1
Op. Profit
Mgn %
22.323.22323.124.421.918.218.517.11512.9
Net Profit
Mgn %
24.425.726.525.72619.79.611.315.41411.7
Debt to
Equity
000000.50.40.10.10.1-
Working Cap
Days
535973555014211011011412575
Cash Conv.
Cycle
-31-35-50-51-45-67-45-34-92421

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 19.29%

Return on Equity has declined versus last 3 years average to 5.10%

Sales growth has been subdued in last 3 years 8.47%

Sales growth is not so good in last 4 quarters at 3.04%

Latest Financials - Zydus Wellness Ltd.

Standalone Consolidated
TTM EPS (₹) 8.6 41.2
TTM Sales (₹ Cr.) 206 2,247
BVPS (₹.) 633.1 818.4
Reserves (₹ Cr.) 3,965 5,144
P/BV 2.33 1.80
PE 170.70 35.82
From the Market
52 Week Low / High (₹) 1425.00 / 1720.65
All Time Low / High (₹) 2.05 / 2472.85
Market Cap (₹ Cr.) 9,382
Equity (₹ Cr.) 63.6
Face Value (₹) 10
Industry PE 65.7

Management X-Ray of Zydus Wellness:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Zydus Wellness

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales4044313974315138431,7671,8672,0092,255
Operating Expenses 3143313053323876581,4461,5221,6671,918
Manufacturing Costs14555456661081031027898
Material Costs1248381921132167798459801,146
Employee Cost 313439455482152159159162
Other Costs 146158131138154252411416450512
Operating Profit 901009199125185321344342337
Operating Profit Margin (%) 22.2%23.2%23.0%23.0%24.4%21.9%18.2%18.4%17.0%15.0%
Other Income 192832333539119135
Interest 0001230140842616
Depreciation 587791326252425
Exceptional Items 00000-10-44-1320-10
Profit Before Tax 104120117124150171121112306291
Tax 59121313-1-20-7-3-20
Profit After Tax 98111105111137171142119309310
PAT Margin (%) 24.4%25.8%26.5%25.8%26.6%20.3%8.0%6.4%15.4%13.8%
Adjusted EPS (₹)24.727.926.427.934.329.324.618.748.548.8
Dividend Payout Ratio (%)24%22%25%23%23%17%20%27%10%10%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 3264064795576913,3863,4614,5684,8445,123
Share Capital 39393939395858646464
Reserves 2863674395186523,3293,4034,5044,7805,059
Minority Interest579111300000
Debt00025251,5691,519550132230
Long Term Debt000001,5001,500313630
Short Term Debt0002525691923769230
Trade Payables5050636779392504439364313
Others Liabilities 454517-33-538-15-16311106
Total Liabilities 4255085686267555,3565,4695,5405,6515,772

Fixed Assets

Gross Block1161131171441544,7124,8444,8584,9194,961
Accumulated Depreciation2128354251144170190209228
Net Fixed Assets9584821031044,5674,6744,6674,7104,732
CWIP 0000010441213
Investments 5094301484611002770
Inventories2826243235233292365362457
Trade Receivables313499611894142208
Cash Equivalents 2633393054404141648225317038
Others Assets3157601746238188157228253
Total Assets 4255085686267555,3565,4695,5405,6515,772

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 916990776914925928723792
PBT 104120117124150171121112306291
Adjustment -14-19-25-23-21-81632404142
Changes in Working Capital 9-2112-15-4849-23-66-106-240
Tax Paid -7-11-14-9-12-63-20-4-1
Cash Flow From Investing Activity 1329-28-72-59-4,162-17-10-86-85
Capex -53-4-31-8-17-25-17-75-44
Net Investments 00-55-73-8246020-21-41
Others 1927313131-4,6045791
Cash Flow From Financing Activity -27-27-58-6-24,052-260-216-234-138
Net Proceeds from Shares 000002,575098700
Net Proceeds from Borrowing 000001,5000-1,320-188-250
Interest Paid 000-10-30-140-101-32-16
Dividend Paid -23-23-48-25-2-31-580-32-32
Others -4-4-1020038-6221818159
Net Cash Flow 77714-1839-1860-83-132
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)33.7830.3923.7921.4921.878.44.142.966.566.23
ROCE (%)35.6532.7426.4423.4823.337.085.263.886.415.77
Asset Turnover Ratio1.110.970.790.770.750.280.360.370.380.42
PAT to CFO Conversion(x)0.930.620.860.690.50.871.822.410.770.3
Working Capital Days
Receivable Days222342320192026
Inventory Days29222122235850606262
Payable Days141219256257235397210204149108

Zydus Wellness Ltd Stock News

Zydus Wellness Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Zydus Wellness on 19-Mar-2024 14:25 is ₹1,479.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 19-Mar-2024 14:25 the market cap of Zydus Wellness stood at ₹9,381.9.
The latest P/E ratio of Zydus Wellness as of 19-Mar-2024 14:25 is 170.7.
The latest P/B ratio of Zydus Wellness as of 19-Mar-2024 14:25 is 2.33.
The 52-week high of Zydus Wellness is ₹1,720.7 and the 52-week low is ₹1,425.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Zydus Wellness is ₹206.5 ( Cr.) .

About Zydus Wellness Ltd

Zydus Wellness Ltd. is established in 1988. The company is a leading consumer wellness company with an Indian heritage and a global footprint. It believes, a healthy lifestyle is not just about being active but also about feeling good from within. So, it approaches health and wellness in a holistic manner. It nourishes, nurture and energize millions of lives by offering a variety of innovative, industry-leading products. With several years of operational excellence, it has seven leading brands in its portfolio, namely Complan, Sugar Free, Glucon-D, Everyuth, Nycil, Sugarlite and Nutralite.

Headquartered in Ahmedabad and Mumbai, it has many manufacturing facilities across several locations - Aligarh, Sitarganj. Ahmedabad and Sikkim. It also has 8 co-packing facilities in India, Oman and Newzealand. Its core pillars -manufacturing integrity, supply chain efficiency, and product innovation, form the basis of the legacy it has built over the last few decades. Currently the Zydus Wellness business spans over several countries and many continents. It combines the best of healthcare, nutrition and cosmeceutical products to provide quality wellness products. It helps people pursue integrated well-being through its widening range of products.

Business area of the company

The company is an integrated consumer company. The Company is engaged in the development, production, marketing and distribution of health and wellness products.

Product of the Company

The Company has a wide range of health and wellness products. The Company’s product portfolio includes popular brands with functional benefits like Glucon D, Complan, Sugar Free, Nycil, Everyuth, Nutralite and Sugarlite.

Awards

2017-18

  • Its Sikkim plant received the Gold Award at the National Award for Manufacturing Competitiveness (NAMC), conducted by International Research Institute of Manufacturing.
  • Its flagship brand Sugar Free won the ‘Best Integration of Brand and Movie’ award at the Prime Time Awards 2017 for its association with the Bollywood film, ‘Chef’.
  • National Gold Award for Manufacturing Competitiveness.

2018-19

  • The Sikkim plant was presented with the Gold award by the International Research Institute of Manufacturing. 
  • The Ahmedabad plant (Nutralite) was presented the Silver award by the International Research Institute of Manufacturing at the National Award for Manufacturing Competitiveness 2018. 
  • The Sikkim plant was presented the Silver award at the India Manufacturing Excellence Award held by Frost and Sullivan. 
  • The Company was presented the Best SLIM Lead Award for manufacturing facilities in an exercise organised by the Zydus group. 
  • Won the India Packaging Award for Sugar Free Green Veda pack for Excellence in Packaging Design.
  • Won three Inflection Awards for the Best Procurement Team of the Year, 2018. 
  • Sugar Free won the Gold Award at Abby Awards (Publishers) for the Company’s West Bengal initiative with ABP.

2019-20

  • Most Trusted Brands 2020

Milestones

  • 1988: Launched Sugar Free with Aspartame.
  • 1991: Launched the Everyuth skincare range.
  • 2005: Introduced Sugar Free Natura with Sucralose.
  • 2006: Acquired Carnation NutraAnalogue Foods Ltd.
  • 2009: Restructured the consumer business of Cadila Healthcare Ltd., renamed Zydus Wellness Ltd.
  • 2011: Inaugurated the manufacturing plant in Sikkim.
  • 2017: Commissioned the new production facility in Sikkim.
  • 2017: Launched Sugar Free Green with Stevia.
  • 2018: Introduced Nutralite Mayonnaise in three appealing flavours: vegetable, cheese garlic and achari.
  • 2019: Acquired Heinz India Pvt. Ltd.
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