BSE:531335

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Executive Summary

Zydus Wellness Limited develops, produces, markets, and distributes health and wellness products in India. More Details


Snowflake Analysis

Reasonable growth potential with questionable track record.


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Share Price & News

How has Zydus Wellness's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 531335's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.2%

531335

-5.4%

IN Food

-3.8%

IN Market


1 Year Return

-1.6%

531335

16.4%

IN Food

-1.7%

IN Market

Return vs Industry: 531335 underperformed the Indian Food industry which returned 17.7% over the past year.

Return vs Market: 531335 exceeded the Indian Market which returned -0.8% over the past year.


Shareholder returns

531335IndustryMarket
7 Day-9.2%-5.4%-3.8%
30 Day1.5%-6.7%-2.3%
90 Day34.2%3.6%8.2%
1 Year-1.2%-1.6%18.0%16.4%0.08%-1.7%
3 Year93.6%91.1%50.3%45.5%1.5%-3.3%
5 Year117.0%110.7%144.1%132.0%41.3%30.9%

Price Volatility Vs. Market

How volatile is Zydus Wellness's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zydus Wellness undervalued compared to its fair value and its price relative to the market?

65.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 531335 (₹1767.5) is trading above our estimate of fair value (₹775.18)

Significantly Below Fair Value: 531335 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 531335 is poor value based on its PE Ratio (67.7x) compared to the IN Food industry average (14.1x).

PE vs Market: 531335 is poor value based on its PE Ratio (67.7x) compared to the Indian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: 531335 is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: 531335 is overvalued based on its PB Ratio (2.9x) compared to the IN Food industry average (1.2x).


Next Steps

Future Growth

How is Zydus Wellness forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

33.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 531335's forecast earnings growth (33.9% per year) is above the savings rate (7.2%).

Earnings vs Market: 531335's earnings (33.9% per year) are forecast to grow faster than the Indian market (26.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 531335's revenue (12.4% per year) is forecast to grow faster than the Indian market (11.7% per year).

High Growth Revenue: 531335's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 531335's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Zydus Wellness performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531335 has high quality earnings.

Growing Profit Margin: 531335's current net profit margins (8.9%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: 531335's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: 531335's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 531335 had negative earnings growth (-32.6%) over the past year, making it difficult to compare to the Food industry average (13.2%).


Return on Equity

High ROE: 531335's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Zydus Wellness's financial position?


Financial Position Analysis

Short Term Liabilities: 531335's short term assets (₹7.8B) exceed its short term liabilities (₹6.0B).

Long Term Liabilities: 531335's short term assets (₹7.8B) do not cover its long term liabilities (₹15.3B).


Debt to Equity History and Analysis

Debt Level: 531335's debt to equity ratio (43.9%) is considered high.

Reducing Debt: Insufficient data to determine if 531335's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 531335's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: 531335's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is Zydus Wellness's current dividend yield, its reliability and sustainability?

0.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 531335's dividend (0.28%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 531335's dividend (0.28%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).


Stability and Growth of Payments

Stable Dividend: 531335's dividend payments have been volatile in the past 10 years.

Growing Dividend: 531335's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.2%), 531335's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Tarun Arora (48 yo)

1.67yrs

Tenure

₹11,000,000

Compensation

Mr. Tarun G. Arora has been Chief Executive Officer of Zydus Wellness Limited since January 2019 and is instrumental in accelerating the growth on back of innovations, expanding the geographies for the bus ...


CEO Compensation Analysis

Compensation vs Market: Tarun's total compensation ($USD149.45K) is below average for companies of similar size in the Indian market ($USD574.24K).

Compensation vs Earnings: Tarun's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Tarun Arora
CEO & Whole Time Director1.67yrs₹11.00m0.0017%
₹ 1.8m
Umesh Parikh
Chief Financial Officer2.58yrs₹12.02m0.000010%
₹ 10.3k
Dhanraj Dagar
Company Secretary & Compliance Officer1.58yrs₹1.13mno data

1.7yrs

Average Tenure

Experienced Management: 531335's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tarun Arora
CEO & Whole Time Director1.67yrs₹11.00m0.0017%
₹ 1.8m
Sharvil Patel
Non-Executive Chairman6.17yrs₹500.00k0.00092%
₹ 945.3k
Ganesh Nayak
Non-Executive Director14.17yrs₹800.00k0.011%
₹ 11.7m
Dharmishtaben Raval
Independent Director1.5yrs₹450.00kno data
Kulin Lalbhai
Non-Executive & Independent Director3.83yrs₹450.00kno data
Ashish Bhargava
Nominee Director1.67yrsno datano data
Savyasachi Sengupta
Independent Director1.83yrs₹900.00k0.00030%
₹ 308.2k
Srivishnu Nandyala
Independent Director1.5yrs₹500.00kno data

2.8yrs

Average Tenure

48yo

Average Age

Experienced Board: 531335's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zydus Wellness Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zydus Wellness Limited
  • Ticker: 531335
  • Exchange: BSE
  • Founded: 1994
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹102.748b
  • Shares outstanding: 59.79m
  • Website: https://www.zyduswellness.in

Location

  • Zydus Wellness Limited
  • Zydus Corporate Park
  • Scheme No. 63, Survey No. 536
  • Ahmedabad
  • Gujarat
  • 382481
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531335BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2002
ZYDUSWELLNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2002

Biography

Zydus Wellness Limited develops, produces, markets, and distributes health and wellness products in India. The company provides sugar substitute products under the Sugar Free Gold, Sugar Free Natura, and S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 19:17
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.