Zydus Lifesciences Limited (ZYDUSLIFE) AI Stock Analysis

• Market Cap: ₹1.00T
• Dividend Yield: 1.12%
• Average Volume (3M): 39.81K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.63
• Revenue Growth: 14.52%
• EPS Growth: 9.46%
• Country: IN
• Employees: 26,921
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 14.30
• Shares Outstanding: 1,006,234,000
• 10 Day Avg. Volume: 33,123
• 30 Day Avg. Volume: 39,808
• PEG Ratio: 1.09
• Price to Book (P/B): 3.69
• Price to Sales (P/S): 3.80
• P/FCF Ratio: 17.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,003.50
• Price Target Upside: 1.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ₹1,072.00 ▲(8.71% Upside)

Zydus Lifesciences' strong financial performance is the most significant factor, showcasing robust growth and stability. However, weak technical indicators and moderate valuation weigh down the overall score. The absence of earnings call insights and corporate events leaves the financial and technical aspects as the primary determinants.

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 Pharmaceuticals and Consumer Products segments. It offers finished dosage human formulations comprising generics, branded generics, and specialty formulations, including biosimilars and vaccines; active pharmaceutical ingredients; consumer wellness products; and products in the therapeutic areas of pain management, neurology, dermatology, liver diseases, and other areas. The company also provides consumer wellness products, such as Complan; EverYuth, a range of skincare products; Nycil; Glucon-D glucose powder; Nutralite; Nutralite Doodhshakti, a portfolio of dairy products; and various other products. In addition, the company offers a pipeline of biological products in the areas of oncology, autoimmune disease, nephrology, ophthalmology, inflammation, rheumatology, hepatology, infectious disease, etc. Further, it engages in the investment, animal health and veterinary, pharmacy retail, and manpower supply and administration activities. The company was formerly known as Cadila Healthcare Limited and changed its name to Zydus Lifesciences Limited in February 2022. Zydus Lifesciences Limited was founded in 1952 and is based in Ahmedabad, India.

How the Company Makes Money

Zydus Lifesciences generates revenue primarily through the sale of pharmaceutical formulations and active pharmaceutical ingredients (APIs) to various markets, including India and international markets. The company has a robust product portfolio that includes branded generics and over-the-counter (OTC) products, which contribute significantly to its earnings. Revenue also comes from the development and commercialization of biosimilars, which are biologic medical products highly similar to already approved reference products. Collaborations and partnerships with other pharmaceutical companies and research institutions for the development of new drugs and therapies further enhance its revenue streams. Additionally, Zydus Lifesciences invests in research and development, which helps in introducing innovative products that meet market demands, boosting overall sales and profitability.

Zydus Lifesciences Limited Financial Statement Overview

Summary

Zydus Lifesciences demonstrates strong financial performance with impressive revenue and profit growth, a healthy balance sheet with low leverage, and robust cash flow generation. The potential risk associated with high total liabilities is mitigated by strong operational efficiency and profitability.

Income Statement

Zydus Lifesciences has shown strong growth in its revenue and profitability. The gross profit margin stands at 72.7%, indicating efficient cost management. Net profit margin improved to 19.5%, reflecting enhanced profitability. Revenue growth rate is impressive at 18.9%, showing positive growth momentum. EBIT and EBITDA margins are also robust at 56.9% and 29.7%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet displays healthy financial stability, with a low debt-to-equity ratio of 0.13, suggesting low leverage. The return on equity is strong at 18.9%, indicating effective use of equity. The equity ratio is also substantial at 64.4%, demonstrating a strong equity base. However, the high level of total liabilities could pose potential risks.

Cash Flow

Cash flow analysis shows a strong position with a free cash flow growth rate of 118.1%, indicating significant improvement in cash generation. The operating cash flow to net income ratio is 1.50, suggesting robust cash flow generation relative to net earnings. The free cash flow to net income ratio is 1.12, further validating strong cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	233.55B	232.41B	192.51B	168.78B	148.28B	142.87B
Gross Profit	168.14B	169.03B	86.28B	105.68B	90.09B	93.42B
EBITDA	73.74B	68.95B	56.22B	34.42B	36.71B	32.33B
Net Income	45.72B	45.26B	38.59B	19.60B	44.87B	21.34B
Balance Sheet
Total Assets	0.00	372.02B	292.81B	257.56B	277.95B	238.85B
Cash, Cash Equivalents and Short-Term Investments	56.37B	78.08B	13.58B	11.92B	35.05B	11.27B
Total Debt	0.00	32.13B	8.04B	11.95B	42.21B	46.08B
Total Liabilities	-263.58B	108.43B	71.79B	60.68B	87.42B	89.55B
Stockholders Equity	263.58B	239.53B	198.29B	175.16B	170.00B	129.92B
Cash Flow
Free Cash Flow	0.00	50.64B	23.21B	16.58B	9.02B	24.39B
Operating Cash Flow	0.00	67.77B	32.28B	26.89B	21.04B	32.93B
Investing Cash Flow	0.00	-83.72B	-14.75B	11.71B	-10.00B	-7.22B
Financing Cash Flow	0.00	20.14B	-17.79B	-44.00B	-8.68B	-25.49B

Zydus Lifesciences Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 986.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZYDUSLIFE, the sentiment is Negative. The current price of 986.15 is below the 20-day moving average (MA) of 1017.64, below the 50-day MA of 996.67, and above the 200-day MA of 941.66, indicating a neutral trend. The MACD of -4.98 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 22.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZYDUSLIFE.

Zydus Lifesciences Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	74 Outperform	₹1.04T	18.34	―	0.65%	15.86%	2.02%
TORNTPHARM	72 Outperform	₹1.20T	59.90	―	0.90%	7.63%	15.39%
LUPIN	68 Neutral	₹879.10B	23.74	―	0.63%	12.40%	63.16%
ZYDUSLIFE	67 Neutral	₹1.00T	21.88	―	1.12%	14.52%	9.46%
MANKIND	66 Neutral	₹1.01T	52.64	―	0.04%	21.66%	-4.92%
CIPLA	62 Neutral	₹1.22T	22.67	―	0.86%	6.40%	25.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Zydus Lifesciences Limited Corporate Events

Zydus Lifesciences Issues Notice on Lost Share Certificate

Zydus Lifesciences Limited has announced the loss of a share certificate by a shareholder, as published in the Financial Express. The company has issued a notice to caution against dealing with the lost share certificates and will issue a duplicate if no objections are received within seven days, ensuring the protection of shareholder interests.