BSE:531335

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.8%

BSE:531335

1.7%

IN Food

1.5%

IN Market


1 Year Return

8.5%

BSE:531335

-5.0%

IN Food

-11.2%

IN Market

531335 outperformed the Food industry which returned -5% over the past year.

531335 outperformed the Market in India which returned -11.2% over the past year.


Share holder returns

531335IndustryMarket
7 Day4.8%1.7%1.5%
30 Day17.4%5.5%1.1%
90 Day32.9%-1.2%-6.7%
1 Year8.9%8.5%-3.8%-5.0%-9.5%-11.2%
3 Year98.1%94.8%53.2%48.9%19.7%13.7%
5 Year173.1%164.4%110.2%99.9%34.6%21.9%

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 based on future cash flows and its price relative to the stock market?

36.79x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Zydus Wellness's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Zydus Wellness's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Zydus Wellness is overvalued based on earnings compared to the IN Food industry average.

Zydus Wellness is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Zydus Wellness is poor value based on expected growth next year.


Price Based on Value of Assets

Zydus Wellness is overvalued based on assets compared to the IN Food industry average.


Next Steps

Future Growth

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

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zydus Wellness's revenue is expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Zydus Wellness's earnings are expected to grow significantly at over 20% yearly.

Zydus Wellness's revenue growth is expected to exceed the India market average.

Zydus Wellness's earnings growth is expected to exceed the India market average.

Zydus Wellness's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Zydus Wellness is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Zydus Wellness performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Zydus Wellness's year on year earnings growth rate has been positive over the past 5 years.

Zydus Wellness's 1-year earnings growth exceeds its 5-year average (66.6% vs 12.4%)

Zydus Wellness's earnings growth has exceeded the IN Food industry average in the past year (66.6% vs 15.8%).


Return on Equity

Zydus Wellness has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Zydus Wellness used its assets less efficiently than the IN Food industry average last year based on Return on Assets.


Return on Capital Employed

Zydus Wellness's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Zydus Wellness's financial position?


Financial Position Analysis

Zydus Wellness is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Zydus Wellness's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Zydus Wellness's level of debt (46.3%) compared to net worth is high (greater than 40%).

Unable to establish if Zydus Wellness's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (9.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

0.35%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Zydus Wellness's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.57%).

Zydus Wellness's dividend is below the markets top 25% of dividend payers in India (2.35%).

Zydus Wellness is not paying a notable dividend for India, therefore no need to check if the payments are stable.

Zydus Wellness is not paying a notable dividend for India, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Zydus Wellness's dividends as it is not paying a notable one for India.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (9.1x coverage).


Next Steps

Management

What is the CEO of Zydus Wellness's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Tarun Arora (47yo)

0.7yrs

Tenure

₹32,810,000

Compensation

Mr. Tarun G. Arora has been Chief Executive Officer of Zydus Wellness Limited since January 2019. He was Chief Operating Officer of Zydus Wellness Limited since May 14, 2015 until January 2019. He has been ...


CEO Compensation Analysis

Tarun's remuneration is about average for companies of similar size in India.

Tarun's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.7yrs

Average Tenure

The average tenure for the Zydus Wellness management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

47yo

Average Age

The average tenure for the Zydus Wellness board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Sell₹568,96708 Mar 19
Nitin Parekh
EntityIndividual
Shares436
Max Price₹1,304.97
Buy₹189,91828 Feb 19
Tarun Arora
EntityIndividual
Role
Chief Executive Officer
CEO & Whole Time Director
Shares152
Max Price₹1,249.46
Buy₹306,84922 Feb 19
Tarun Arora
EntityIndividual
Role
Chief Executive Officer
CEO & Whole Time Director
Shares248
Max Price₹1,237.30
Buy₹2,999,998,47631 Jan 19
Pankaj Patel
EntityIndividual
Shares2,166,064
Max Price₹1,385.00

Ownership Breakdown


Management Team

  • Umesh Parikh

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: ₹10.98m
  • Tarun Arora (47yo)

    CEO & Whole Time Director

    • Tenure: 0.7yrs
    • Compensation: ₹32.81m
  • Dhanraj Dagar

    Company Secretary & Compliance Officer

    • Tenure: 0.6yrs
    • Compensation: ₹173.00k

Board Members

  • Sharvil Patel (40yo)

    Non-Executive Chairman

    • Tenure: 5.2yrs
    • Compensation: ₹950.00k
  • Ganesh Nayak (64yo)

    Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: ₹1.10m
  • Dharmishta Raval (63yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: ₹1.00m
  • Kulin Lalbhai (34yo)

    Non-Executive & Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹1.90m
  • Ashish Bhargava

    Nominee Director

    • Tenure: 0.7yrs
    • Compensation: ₹1.20m
  • Tarun Arora (47yo)

    CEO & Whole Time Director

    • Tenure: 0.7yrs
    • Compensation: ₹32.81m
  • Savyasachi Sengupta (67yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹1.60m
  • Srivishnu Nandyala (46yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: ₹1.00m

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: ₹101.388b
  • Shares outstanding: 57.66m
  • Website: https://zyduswellness.in

Location

  • Zydus Wellness Limited
  • House No. 6 & 7
  • Sigma Commerce Zone
  • Ahmedabad
  • Gujarat
  • 380015
  • 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 Analysis2019/09/15 12:34
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.