Zydus Lifesciences Limited

NSEI:ZYDUSLIFE Stock Report

Market Cap: ₹950.6b

Zydus Lifesciences Valuation

Is ZYDUSLIFE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ZYDUSLIFE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZYDUSLIFE (₹944.7) is trading above our estimate of fair value (₹557.21)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZYDUSLIFE?

Key metric: As ZYDUSLIFE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ZYDUSLIFE. This is calculated by dividing ZYDUSLIFE's market cap by their current earnings.
What is ZYDUSLIFE's PE Ratio?
PE Ratio22.2x
Earnings₹42.78b
Market Cap₹950.59b

Price to Earnings Ratio vs Peers

How does ZYDUSLIFE's PE Ratio compare to its peers?

The above table shows the PE ratio for ZYDUSLIFE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.7x
500257 Lupin
35.3x16.5%₹928.3b
500124 Dr. Reddy's Laboratories
18.6x-1.0%₹994.0b
500420 Torrent Pharmaceuticals
58.3x22.7%₹1.1t
CIPLA Cipla
26.4x7.3%₹1.2t
ZYDUSLIFE Zydus Lifesciences
22.2x0.6%₹950.6b

Price-To-Earnings vs Peers: ZYDUSLIFE is good value based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (34.7x).

Price to Earnings Ratio vs Industry

How does ZYDUSLIFE's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.6xn/aUS$72.79m
524652 Ind-Swift
2xn/aUS$13.15m
No more companies available in this PE range
ZYDUSLIFE 22.2xIndustry Avg. 32.7xNo. of Companies18PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZYDUSLIFE is good value based on its Price-To-Earnings Ratio (22.2x) compared to the Indian Pharmaceuticals industry average (32.7x).

Price to Earnings Ratio vs Fair Ratio

What is ZYDUSLIFE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZYDUSLIFE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ratio35.8x

Price-To-Earnings vs Fair Ratio: ZYDUSLIFE is good value based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (35.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZYDUSLIFE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹944.70
₹1,087.22
+15.1%
12.2%₹1,380.00₹794.00n/a32
Nov ’25₹1,004.00
₹1,168.69
+16.4%
14.7%₹1,496.00₹816.00n/a32
Oct ’25₹1,080.35
₹1,179.78
+9.2%
15.6%₹1,500.00₹816.00n/a32
Sep ’25₹1,127.90
₹1,195.74
+6.0%
14.9%₹1,500.00₹816.00n/a31
Aug ’25₹1,241.40
₹1,059.35
-14.7%
16.8%₹1,365.00₹650.00n/a31
Jul ’25₹1,067.30
₹1,018.87
-4.5%
18.1%₹1,319.00₹550.00n/a31
Jun ’25₹1,000.15
₹1,006.53
+0.6%
18.2%₹1,319.00₹550.00n/a30
May ’25₹953.55
₹847.55
-11.1%
16.1%₹1,107.00₹550.00n/a29
Apr ’25₹999.80
₹825.57
-17.4%
16.6%₹1,107.00₹550.00n/a30
Mar ’25₹925.35
₹815.27
-11.9%
14.8%₹988.00₹550.00n/a30
Feb ’25₹759.55
₹689.17
-9.3%
9.4%₹790.00₹550.00n/a30
Jan ’25₹699.15
₹663.17
-5.1%
11.1%₹781.00₹490.00n/a30
Dec ’24₹639.70
₹656.19
+2.6%
10.6%₹750.00₹490.00n/a32
Nov ’24₹575.40
₹649.50
+12.9%
12.3%₹770.00₹490.00₹1,004.0032
Oct ’24₹615.00
₹645.74
+5.0%
13.7%₹760.00₹400.00₹1,080.3531
Sep ’24₹613.95
₹640.88
+4.4%
14.2%₹760.00₹400.00₹1,127.9032
Aug ’24₹633.90
₹548.81
-13.4%
11.2%₹663.00₹392.00₹1,241.4032
Jul ’24₹583.05
₹535.68
-8.1%
11.4%₹620.00₹392.00₹1,067.3031
Jun ’24₹513.40
₹541.81
+5.5%
11.9%₹646.00₹392.00₹1,000.1532
May ’24₹519.90
₹494.90
-4.8%
10.7%₹610.00₹355.00₹953.5530
Apr ’24₹491.55
₹490.50
-0.2%
10.4%₹610.00₹355.00₹999.8030
Mar ’24₹473.55
₹484.97
+2.4%
10.1%₹610.00₹355.00₹925.3533
Feb ’24₹435.45
₹461.67
+6.0%
9.9%₹554.00₹330.00₹759.5530
Jan ’24₹419.95
₹460.20
+9.6%
10.5%₹554.00₹330.00₹699.1530
Dec ’23₹411.15
₹455.23
+10.7%
10.1%₹530.00₹330.00₹639.7030
Nov ’23₹433.05
₹428.57
-1.0%
11.0%₹513.00₹330.00₹575.4030

Analyst Forecast: Target price is less than 20% higher than the current share price.

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