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Zydus Wellness Ltd Stock Analysis

Mid Cap
Evaluated by 5006 users | BSE: 531335 | NSE: ZYDUSWELL |
Consumer Food

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...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 42%41.2%43.46%32.82%29.21%22.9%20.12%19.96%6.5%5.37%
Value Creation Index 2.041.852.011.271.020.590.390.38-0.55-0.63
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3363373884044313974315138431,767
Y-o-Y Gr. Rt.-0.1%15.2%4%6.7%-7.9%8.5%19.1%64.4%109.6%
Adjusted EPS (Rs.) 15.2317.3624.8524.7427.7626.3627.7133.4728.3629.31
Y-o-Y Gr. Rt.-14%43.2%-0.4%12.2%-5%5.1%20.8%-15.3%3.4%
Book Value per Share (Rs.) 36.3247.8365.6683.33103.93122.49142.61176.91587.28600.18
Adjusted Net Profit 59.567.897.196.7108103108131164169
Net Op. Cash Flow (Rs. Cr.) 42.96268.791.169.289.97769.1149259
Debt to Cash Flow from Ops 0000000.320.3610.515.86
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Zydus Wellness Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 20.2%32.6%60.1%109.6%
Adjusted EPS 7.6%1.1%1.9%3.4%
Book Value per Share 36.64261.52.2
Share Price 22% 23.5% 19.4% 67.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 41.9341.2643.833.2129.6523.2820.920.958.024.94
Operating Profit Margin (%) 25.123.0324.922.2523.223.0223.0524.4421.9318.17
Net Profit Margin (%) 17.6920.4125.5224.4125.6926.4625.6826.0219.669.57
Debt to Equity 0000000.040.040.460.44
Working Capital Days 042465359735550142120
Cash Conversion Cycle 0-34-24-31-35-50-51-45-67-36
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 64.82%
Institutions 27.72%
Non-Institutions 7.46%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Zydus Wellness Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Zydus Wellness Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Zydus Wellness Ltd's performance infers:

Zydus Wellness Ltd earnings have grown by 1.1%, whereas share price has appreciated 23.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Zydus Wellness Ltd share prices over the last 10 years. Here is what we found out:

Zydus Wellness Ltd share price has appreciated 14.7% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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