Zydus Lifesciences Limited (IN:ZYDUSLIFE)
:ZYDUSLIFE
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Zydus Lifesciences Limited
(ZYDUSLIFE)
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Rating:64Neutral
Price Target:
₹1,114.00
▲(20.85% Upside)
Action:Downgraded
Date:05/21/26
The score is held back primarily by weakened 2026 cash generation (negative free cash flow) and a rapid increase in leverage, despite solid revenue growth and generally healthy profitability. Technicals are supportive with a clear uptrend, and valuation appears reasonable with a modest dividend yield.
Positive Factors
Consistent Revenue Growth
Sustained top-line growth (10.8% in 2026 and multi-year compounding) indicates expanding market reach and product adoption across geographies. Durable revenue momentum supports ongoing R&D, scale benefits in manufacturing, and long-term reinvestment capacity.
Negative Factors
Deteriorating Cash Generation
A sharp drop in operating cash flow and negative free cash flow materially weakens financial flexibility. Persistent cash conversion weakness limits capacity to self-fund R&D, capex or debt service, making the company more reliant on external financing during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained top-line growth (10.8% in 2026 and multi-year compounding) indicates expanding market reach and product adoption across geographies. Durable revenue momentum supports ongoing R&D, scale benefits in manufacturing, and long-term reinvestment capacity.
Read all positive factors
Zydus Lifesciences Limited (ZYDUSLIFE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.05T
Dividend Yield1.19%
Average Volume (3M)33.86K
Price to Earnings (P/E)22.1
Beta (1Y)0.49
Revenue Growth16.81%
EPS Growth11.38%
CountryIN
Employees26,921
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)48.90
Shares Outstanding1,006,234,000
10 Day Avg. Volume33,597
30 Day Avg. Volume33,862
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)3.23
Price to Sales (P/S)3.23
P/FCF Ratio-72.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)41.84
Revenue Forecast (FY)₹306.42B
Zydus Lifesciences Limited Business Overview & Revenue Model
Company Description
Zydus Lifesciences Limited engages in the research, development, production, marketing, distribution, and sale of pharmaceutical products in India, the United States, Europe, Latin America, the Asia Pacific, and Africa. The company operates in Pha...
How the Company Makes Money
Zydus Lifesciences makes money primarily by selling pharmaceutical products that it develops and manufactures, generating revenue from (1) branded formulations marketed in India and other markets, where products are sold through distributors/stock...
Zydus Lifesciences Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
39
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 244.94B | 271.48B | 232.41B | 195.47B | 172.37B | 151.10B |
| Gross Profit | 161.97B | 140.30B | 167.03B | 131.54B | 107.67B | 94.24B |
| EBITDA | 73.82B | 71.95B | 68.30B | 52.57B | 35.34B | 31.70B |
| Net Income | 49.20B | 50.40B | 45.26B | 38.59B | 19.60B | 44.87B |
Balance Sheet | ||||||
| Total Assets | 468.97B | 524.07B | 372.02B | 292.81B | 257.56B | 277.95B |
| Cash, Cash Equivalents and Short-Term Investments | 70.69B | 71.92B | 78.08B | 13.58B | 11.92B | 35.05B |
| Total Debt | 96.36B | 124.96B | 32.13B | 8.04B | 11.95B | 42.21B |
| Total Liabilities | 188.07B | 228.24B | 108.43B | 71.79B | 60.68B | 87.42B |
| Stockholders Equity | 253.02B | 271.11B | 239.53B | 198.29B | 175.16B | 170.00B |
Cash Flow | ||||||
| Free Cash Flow | 785.00M | -12.03B | 50.64B | 23.21B | 16.58B | 9.02B |
| Operating Cash Flow | 9.46B | 21.91B | 67.77B | 32.28B | 26.89B | 21.04B |
| Investing Cash Flow | -51.93B | -87.25B | -83.72B | -14.75B | 11.71B | -10.00B |
| Financing Cash Flow | 40.45B | 61.60B | 20.14B | -17.79B | -44.00B | -8.68B |
Zydus Lifesciences Limited Technical Analysis
Positive
921.80
Price Trends
920.15
Positive
911.86
Positive
943.73
Positive
Market Momentum
26.99
Negative
70.96
Negative
72.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZYDUSLIFE, the sentiment is Positive. The current price of 921.8 is below the 20-day moving average (MA) of 948.03, above the 50-day MA of 920.15, and below the 200-day MA of 943.73, indicating a bullish trend. The MACD of 26.99 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 72.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ZYDUSLIFE.
Zydus Lifesciences Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹1.04T | 19.82 | ― | 0.57% | 23.12% | 62.27% | |
69 Neutral | ₹1.13T | 25.49 | ― | 0.87% | 2.23% | -26.44% | |
68 Neutral | ₹1.07T | 55.46 | ― | 0.04% | 16.27% | -6.07% | |
67 Neutral | ₹1.10T | 24.38 | ― | 0.63% | 3.19% | -24.26% | |
66 Neutral | ₹1.50T | 51.30 | ― | 0.84% | 12.74% | 22.02% | |
64 Neutral | ₹1.05T | 22.07 | ― | 1.19% | 16.81% | 11.38% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Zydus Lifesciences Limited Corporate Events
Zydus Lifesciences to Acquire U.S. Oncology Player Assertio in USD 166 Million Deal
May 13, 2026
Zydus Lifesciences’ subsidiary Zydus Worldwide DMCC, through its wholly owned acquisition vehicle Zara Merger Sub Inc., has signed a definitive agreement with Assertio Holdings, Inc. to acquire all outstanding shares of Assertio for USD 23.5...
Zydus Lifesciences Forms New U.S. Subsidiary for Internal Restructuring
Apr 30, 2026
Zydus Lifesciences has incorporated a wholly owned U.S. subsidiary named Zara Merger SUB Inc. on April 24, 2026, with an authorized issuance of 1,000 common shares at a par value of USD 0.001 each and no turnover yet, as operations have not commen...
Zydus launches reusable multi-dose Semaglutide pen for diabetes and obesity in India
Mar 21, 2026
Zydus Lifesciences has launched Semaglutide Injection in India under the brand names SEMAGLYN, MASHEMA and ALTERME following patent expiry, targeting Type 2 diabetes and obesity. Approved by the Drug Controller General of India, the therapy is pos...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.