Zydus Lifesciences Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹123,520.25 crore, PE ratio of 32, debt-to-equity ratio of 3.64, and return on equity of 18.47%. These figures reflect the company’s financial health and current market valuation.
Content:
- Zydus Lifesciences Ltd Overview
- Zydus Lifesciences Ltd Financial Results
- Zydus Lifesciences Ltd Financial Analysis
- Zydus Lifesciences Ltd Company Metrics
- Zydus Lifesciences Ltd Stock Performance
- Zydus Lifesciences Ltd Peer Comparison
- Zydus Lifesciences Limited Shareholding Pattern
- Zydus Lifesciences Ltd History
- How To Invest In Zydus Lifesciences Ltd Share?
- Zydus Lifesciences Limited Fundamental Analysis – FAQs
Zydus Lifesciences Ltd Overview
Zydus Lifesciences Ltd is an Indian life sciences company. It operates in the pharmaceutical sector, focusing on research, development, manufacturing, and marketing of various pharmaceutical products including generics, biosimilars, vaccines, and consumer wellness products.
The company has a market capitalization of ₹123,520.25 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 1.21% below its 52-week high and 120.15% above its 52-week low.
Zydus Lifesciences Ltd Financial Results
Zydus Lifesciences Ltd has shown consistent growth in sales over the last three years, increasing from ₹15,265 crore in FY 22 to ₹19,547 crore in FY 24. The company has managed its expenses effectively, leading to an improved operating profit from ₹3,341 crore in FY 22 to ₹5,384 crore in FY 24.
1. Revenue Trend: Sales grew from ₹17,237 crore in FY 23 to ₹19,547 crore in FY 24, demonstrating a consistent upward trend.
2. Equity and Liabilities: Equity capital slightly decreased to ₹100.6 crore in FY 24 from ₹101.2 crore in FY 23, while reserves increased from ₹17,415 crore to ₹19,729 crore.
3. Profitability: Net profit increased from ₹2,092 crore in FY 23 to ₹3,973 crore in FY 24, showcasing improved profitability after a dip in FY 22.
4. Earnings per Share (EPS): EPS significantly improved to ₹38.14 in FY 24 from ₹19.3 in FY 23, indicating better returns for shareholders.
5. Return on Net Worth (RoNW): While not directly provided, the increase in EPS and net profit indicates a strong recovery in return on net worth.
6. Financial Position: The dividend payout ratio was strategically reduced from 31.09% in FY 23 to 7.87% in FY 24, indicating a focus on retaining earnings for growth.
Zydus Lifesciences Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 19,547 | 17,237 | 15,265 |
| Expenses | 14,163 | 13,378 | 11,925 |
| Operating Profit | 5,384 | 3,860 | 3,341 |
| OPM % | 28 | 22 | 22 |
| Other Income | 270 | -418 | 337 |
| EBITDA | 5,668 | 4,047 | 3,565 |
| Interest | 81 | 130 | 127 |
| Depreciation | 764 | 723 | 713 |
| Profit Before Tax | 4,809 | 2,590 | 2,838 |
| Tax % | 20 | 23 | 18 |
| Net Profit | 3,973 | 2,092 | 4,618 |
| EPS | 38.14 | 19.3 | 43.83 |
| Dividend Payout % | 7.87 | 31.09 | 5.7 |
* Consolidated Figures in Rs. Crores
Zydus Lifesciences Ltd Company Metrics
Zydus Lifesciences’ market cap is ₹123,520.25 crore with a book value of ₹197 per share. The face value per share is ₹1. Total debt is ₹804.2 crore, ROE is 18.47%, and quarterly EBITDA is ₹1,790.1 crore. The dividend yield stands at 0.24%.
Market Capitalization:
Market Capitalization represents the total market value of Zydus Lifesciences’ outstanding shares, amounting to ₹123,520.25 crore.
Book Value:
The book value per share of Zydus Lifesciences Ltd is ₹197 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Zydus Lifesciences’ shares is ₹1, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 0.73 measures how efficiently Zydus Lifesciences uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Zydus Lifesciences stands at ₹804.2 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 18.47% measures Zydus Lifesciences’ profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Zydus Lifesciences is ₹1,790.1 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 0.24% shows the annual dividend payment as a percentage of Zydus Lifesciences’ current share price, indicating the return on investment from dividends alone.
Zydus Lifesciences Ltd Stock Performance
Zydus Lifesciences Ltd demonstrates remarkable investment returns, showing a one-year return of 99.8%, a three-year return of 32.6%, and a five-year return of 42.9%. This robust performance highlights the company’s strong growth potential and excellent returns across different timeframes.
| Period | Return on Investment (%) |
| 1 Year | 99.8 |
| 3 Years | 32.6 |
| 5 Years | 42.9 |
Example: If an investor had invested ₹1,000 in Zydus Lifesciences’ stock:
1 year ago: An investment would have grown to approximately ₹1,998.
3 years ago: That investment would have increased to about ₹1,326.
5 years ago: The initial ₹1,000 would have reached around ₹1,429.
Zydus Lifesciences Ltd Peer Comparison
Zydus Lifesciences Ltd stands out with a 100% one-year return, illustrating its strong market performance among peers. With a P/E ratio of 32 and ROE of 21%, it competes closely with Cipla and Dr Reddy’s in profitability. However, its modest dividend yield of 0.23% is lower compared to some in the sector.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Sun Pharma.Inds. | 1,739 | 4,17,244 | 40 | 17 | 43 | 53 | 17 | 0.78 |
| Cipla | 1,589 | 1,28,308 | 29 | 17 | 53 | 26 | 23 | 0.82 |
| Zydus Lifesci. | 1,248 | 1,25,568 | 32 | 21 | 42 | 100 | 22.34 | 0.23 |
| Dr Reddy’s Labs | 6,909 | 1,15,263 | 21 | 21 | 334 | 20.44 | 26.53 | 0.57 |
| Lupin | 2,103 | 95,916 | 42 | 14 | 50 | 96 | 16 | 0.38 |
| Mankind Pharma | 2,156 | 86,365 | 46 | 20 | 48 | 17 | 24.57 | – |
| Aurobindo Pharma | 1,448 | 84,838 | 24 | 12 | 60 | 68 | 14.1 | 0.30 |
Zydus Lifesciences Limited Shareholding Pattern
Zydus Lifesciences Ltd shareholder structure in June 2024 shows stability in promoter holdings at 74.98%, nearly unchanged from previous periods. Foreign Institutional Investors (FII) hold 5.59%, while Domestic Institutional Investors (DII) and retail investors hold 12.63% and 6.81%, respectively, indicating a diverse investor base.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 74.98 | 74.98 | 75 |
| FII | 5.59 | 5.72 | 4.99 |
| DII | 12.63 | 12.62 | 13.03 |
| Retail & others | 6.81 | 6.66 | 6.99 |
Zydus Lifesciences Ltd History
Zydus Lifesciences Ltd. is a prominent Indian life sciences company with a diverse product portfolio. The company specializes in research, development, manufacturing, and marketing of finished dosage human formulations. Its product range includes generics, specialty formulations, biosimilars, vaccines, active pharmaceutical ingredients (APIs), animal healthcare products, and consumer wellness products.
The company has developed several innovative products that address specific medical needs. Notable among these are Bilypsa (saroglitazar) for non-alcoholic fatty liver disease (NAFLD) and non-alcoholic steatohepatitis (NASH), and Oxemia for treating anemia in chronic kidney disease patients. Zydus has also made strides in biosimilars with products like Ujvira, a biosimilar to Kadcyla.
Zydus Lifesciences is actively involved in cutting-edge research, developing new molecules to address various health issues. The company is working on ZYIL1, an oral small molecule aimed at suppressing inflammation caused by the NLRP3 inflammasome. Additionally, Zydus has contributed to the fight against COVID-19 with its plasmid DNA vaccine, ZyCoV-D, showcasing its capabilities in vaccine development.
How To Invest In Zydus Lifesciences Ltd Share?
To invest in Zydus Lifesciences Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Zydus Lifesciences shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Zydus Lifesciences Limited Fundamental Analysis – FAQs
Fundamental analysis of Zydus Lifesciences Ltd examines key financial metrics: Market Cap (₹123,520.25 crore), PE Ratio (32), Debt to Equity (3.64), and Return on Equity (18.47%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the pharmaceutical sector.
The market capitalization of Zydus Lifesciences Ltd is ₹123,520.25 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Zydus Lifesciences Limited is an Indian pharmaceutical company specializing in the research, development, manufacturing, and marketing of a wide range of pharmaceutical products. These include generics, biosimilars, vaccines, APIs, and consumer wellness products, with a focus on innovation in healthcare.
Zydus Lifesciences is a public limited company, with the Patel family as the promoters. Pankaj Patel is the Chairman of the company. While the Patel family holds a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Zydus Lifesciences Ltd typically include the Patel family (promoter group) as major stakeholders, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Zydus Lifesciences operates in the pharmaceutical and healthcare industry. The company is involved in the research, development, manufacturing, and marketing of various pharmaceutical products, including generics, biosimilars, vaccines, and consumer wellness products, catering to both human and animal health sectors.
To invest in Zydus Lifesciences shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Zydus Lifesciences is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
