Fundamental Analysis

ZYDUS WELLNESS LIMITED

Ticker : 531335 
BUY : Rs 1960.00 
Target : Rs 2180

Zydus Wellness Limited is an integrated consumer company engaged in the development, production, marketing, and distribution of health & wellness products. On the consolidated quarterly front, the company recorded net sales of Rs 381.58 crore for Q3FY21, which is an increase of 14.7 per cent from its net sales of Rs 332.67 crore reported for Q3FY20. The operating profit rose by 30.94 per cent to Rs 52.05 crore in Q3FY21 from Rs 39.75 crore posted in Q3FY20. On the contrary, net profit was recorded at Rs 1.74 crore in Q3FY21 from Rs 4.24 crore in Q3FY21, showing a dip of 58.96 per cent. Despite the pandemic-induced setbacks, the company launched nine new products in FY21 and has more in its pipeline. The company has also taken strategic initiatives to optimise the cost of production and faster route to market during the quarter. Hence, predicting the company’s ability to achieve strong growth, we recommend a BUY for this scrip.