1808.35 -41.25 (-2.23%)
NSENov 25, 2020 03:31 PM
The 10 reports from 3 analysts offering long term price targets for Zydus Wellness Ltd. have an average target of 2290.00. The consensus estimate represents an upside of 26.63% from the last price of 1808.35.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-11-03||Zydus Wellness Ltd.||Edelweiss||1760.60||2270.00||1760.60 (2.71%)||25.53||Buy|
|2020-11-03||Zydus Wellness Ltd.||ICICI Securities Limited||1760.60||2300.00||1760.60 (2.71%)||27.19||Buy|
ICICI Securities Limited
New launches, increase in direct distribution to propel growth The company has been specifically focusing on increasing direct distribution from 0.35 million (mn) outlets to 0.5 mn outlets by March 2021. Further, e-commerce channel sales have seen growth of 130% in Q2. It is contributing 4.5% to sales. ZWL is also leveraging its strong footing with doctor's advisory & pharmacy channel. We believe the company is focusing on new product launches, variants & SKUs to fill the white spaces in its product line. It launched Complan in 75 gram sachet at | 30. It has...
|2020-11-02||Zydus Wellness Ltd.||Sharekhan||1750.10||2300.00||1750.10 (3.33%)||27.19||Buy|
With a three-pillar strategy, ZWL is strongly placed to achieve earnings CAGR of 27% over FY2020-23. We stick to our Buy rating with unchanged PT of Rs. 2,300. Zydus Wellness Limited's (ZWL's) revenue grew by 5% y-o-y to Rs. 342 crore, almost in line with our expectation of Rs. 336.5 crore driven by leadership position and market share gains across key categories. High input prices (palm oil prices increased by ~30%) led to a 301 bps decline in gross margins to 53.7%. In spite of this, OPM fell by 141 bps to 7.9%, largely due to lower advertisement costs and other expenditure. Operating profit declined by 10.9% y-o-y to Rs. 27.1 crore due to lower operating leverage. Pre-tax...
|2020-09-30||Zydus Wellness Ltd.||Sharekhan||1839.45||2300.00||1839.45 (-1.69%)||27.19||Buy|
|2020-09-18||Zydus Wellness Ltd.||Edelweiss||1904.00||2270.00||1904.00 (-5.02%)||25.53||Buy|
|2020-09-04||Zydus Wellness Ltd.||ICICI Securities Limited||1595.90||2300.00||1595.90 (13.31%)||27.19||Buy|
ICICI Securities Limited
With the reduction of debt, the company would see strong earnings growth in FY20-22E. We expect 51.7% CAGR adjusted earnings growth in FY20-22E (FY20 base was impacted by exceptional expense of | 40 crore related to acquisition & earnings were also negatively impacted by Covid related disruption). Though return ratios would remain in single digits for the next three to four years, we see potential growth opportunities in its brand through increasing penetration & new launches (smaller SKUs & variants). The stock is available at 24.5x FY22E earnings. We value the stock at 35x...
|2020-08-03||Zydus Wellness Ltd.||ICICI Securities Limited||1722.55||1925.00||1722.55 (4.98%)||Target met||Buy|
ICICI Securities Limited
New product, variants launch to drive revenues During this disruptive phase, many FMCG companies are introducing new products & trying to leverage the health, hygiene & immunity boosting proposition. ZWL also launched various new products in Q1. The company has been trying to fill the gaps in its malt beverage portfolio by introducing toddler health drink Complan Nutrigro' and 75 gm Complan sachet. Further, it has launched Glucon-D Immuno volts, which would be marketed as an immunity boosting brand. The company is looking to grow sales in the...
|2020-06-03||Zydus Wellness Ltd.||ICICI Securities Limited||1316.40||1530.00||1316.40 (37.37%)||Target met||Buy|
ICICI Securities Limited
Strong acquired brands; enhanced distribution to aid sales After the acquisition of Heinz, ZWL now has five brands (Sugarfree, Everyuth, Glucon D, Complan, Nycil) in different categories with strong recall value. It would look to double the direct distribution reach in general trade & further enhance its chemist channel. It has a presence in 75% of 5 lakh chemists in India. Further, ZWL has enhanced its e-commerce capabilities by investing in channel early. It is driving 3-3.5% of its sales from ecommerce channel from 1% earlier. We also believe it would be able to leverage its strong relations with medical practitioner to grow Complan...
|2020-06-02||Zydus Wellness Ltd.||Sharekhan||1299.15||1520.00||1299.15 (39.19%)||Target met||Buy|
View: Upgraded to Buy with a revised PT of Rs. 1,520: We have reduced our earnings estimates for FY2021 and FY2022 by 10% and 6%, respectively, to factor in the impact of supply disruption due to the lockdown. With the acquisition of Heinz product portfolio, ZWL has a strong portfolio of brands, which it can leverage upon to improve its market share through new launches supported by enhancing distribution reach. Further, strong cash flows along with relatively stable balance sheet provide support to overall growth prospects. The stock has corrected by 17% in the past five months and is currently trading at 38.5x its FY2022E earnings,...
|2019-12-03||Zydus Wellness Ltd.||ICICI Securities Limited||1440.00||1300.00||1440.00 (25.58%)||Target met||Sell|
|2019-11-13||Zydus Wellness Ltd.||Sharekhan||1430.25||1610.00||1430.25 (26.44%)||Target met||Hold|
Zydus Wellness Limited's (ZWL) Q2FY2020 performance is strictly not comparable y-o-y due to consolidation of the Heinz portfolio from Q1FY2020. After consolidation of the Heinz portfolio, revenue growth was lacklustre, at 3.6%, on a like-to-like basis due to lower sales of by-products such as ghee and milk trading. Excluding byproducts, revenue grew by ~9%, aided by the steady performance of some key brands. Gross margins and OPM declined y-o-y due to an unfavorable revenue mix (lesser contribution from high-margin products such as Glucon-D and Nycil). The company maintained its...
|2019-09-16||Zydus Wellness Ltd.||Sharekhan||1753.70||1840.00||1753.70 (3.12%)||Hold|
The stock price of Zydus Wellness Limited (Zydus) has moved up by ~17% post its strong operating performance in Q1FY2020, which gives us a glimpse of the acquisition of Heinz India Private limited (Heinz) being earnings positive by FY2021 (which was earlier expected to be earnings accretive by FY2022). The acquisition will enhance the portfolio of Zydus with strong brands and enhanced distribution reach. However, funding of the acquisition through debt led to some stress on the balance sheet, though working capital has remained...
|2019-07-31||Zydus Wellness Ltd.||Sharekhan||1394.60||1780.00||1394.60 (29.67%)||Target met||Buy|
Zydus Wellness Limited's (ZWL's) Q1FY2020 results are not comparable y-o-y due to consolidation of the acquired Heinz portfolio. ZWL's base portfolio grew by 10% while the Heinz portfolio grew by 20% in Q1FY2020. OPM stood strong at about 20%. The management has indicated at a sustained double-digit growth on a comparable basis and a 200 bps improvement in OPM in the next two years. We have increased our earnings estimates to factor in higher than estimated growth for the Heinz portfolio. In view of improved earning visibility, we upgrade the...
|2019-06-10||Zydus Wellness Ltd.||Sharekhan||1362.20||1410.00||1362.20 (32.75%)||Target met||Hold|
Comparable revenue grew by 7%, while margins stood at 14-15%: In Q4FY2019, consolidated net revenue (including revenue of Heinz for two months) of Zydus Wellness (Zydus) stood at Rs. 416 crore, while comparable revenue grew by 7% due to slowdown in domestic consumption affecting growth of categories such as Sugarfree and scrubs during the quarter. Aggregate revenue for Heinz...
|2018-12-10||Zydus Wellness Ltd.||Sharekhan||1275.00||1472.00||1275.00 (41.83%)||Target met||Buy|
Funding of Heinz India acquisition will be done through a mix of equity and debt in the ratio 1.7:1: Zydus Wellness (Zydus) is planning to raise Rs. 4,075 crore through a mix of preferential allotment of equity shares and issue of non-convertible debentures for funding the acquisition of the entire shareholding of Heinz India Pvt. Ltd. valued at ~Rs. 4,600 crore. The...
|2018-09-05||Zydus Wellness Ltd.||Sharekhan||1710.00||1935.00||1710.00 (5.75%)||Buy|
Stock moved up by 28% in the past two months: The stock price of Zydus Wellness Limited (ZWL) has moved by 28% in the past two months, inline with strong surge in the FMCG basket. The strong surge in the stock price can also be attributed to pick-up in business fundamentals of the company in the past four quarters. Revamped distribution and new product launches aided the company to maintain a leadership position in key...
|2018-01-01||Zydus Wellness Ltd.||AUM Capital||1042.50||1225.00||1042.50 (73.46%)||Target met||Buy|
Zydus Wellness Ltd. (ZWL) is Ahmedabad based FMCG company, incorporated in 1994. ZWL, a subsidiary of Cadila Healthcare Ltd. the flagship company of the Zydus Cadila Group, operates as an integrated consumer company with business encompassing the entire value chain in the development, production, marketing and distribution of Health and Wellness products. ZWL has been a niche and significant player with its portfolio of flagship brands viz. Sugar Free (sugar substitute), Everyuth (skin care) and Nutralite (health foods). The Company manufactures its range of health and wellness products across three manufacturing facilities one in...
|2017-07-13||Zydus Wellness Ltd.||ICICI Securities Limited||880.55||1054.00||880.55 (105.37%)||Target met||Buy|
|2017-02-07||Zydus Wellness Ltd.||Axis Direct||857.25||840.00||857.25 (110.95%)||Target met||Hold|
Q3FY17 net sales (net of excise) at Rs 1.03 bn were flat YoY in line with our estimate and once again range-bound in quarterly run-rate of Rs 950-1,100 mn. Despite meaningful investments for category adoption (20% of sales on advertising/distribution over past 10 quarters), the wellness market h..
|2014-03-05||Zydus Wellness Ltd.||Ajcon Global||480.20||580.00||480.20 (276.58%)||Target met||Buy|
A Cadila group Company, Zydus Wellness Ltd. operates in Indian Health and Wellness industry which is valued over Rs. 590 bn and expected to witness a CAGR of 18%. The Company has presence in niche segments with strong brands like a) Sugar Free: A healthy alternative to sugar leading the market with over 94% share of the sugar substitutes category, b) Everyuth: Market leader in facial scrub and facial peel off and a strong presence in face wash, c) Nutralite: India's largest selling table spread a healthier...