Zydus Lifesciences Limited (ZYDUSLIFE) AI Stock Analysis

• Market Cap: ₹1.04T
• Dividend Yield: 1.06%
• Average Volume (3M): 51.65K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.65
• 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: 45,091
• 30 Day Avg. Volume: 51,654
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,022.50
• Price Target Upside: -1.40% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ₹1,061.00 ▲(2.31% Upside)

Zydus Lifesciences' strong financial performance is the most significant factor, supported by robust revenue and profit growth, efficient cost management, and strong cash flow generation. The technical analysis indicates a neutral to slightly bearish trend, while the valuation is fair. The absence of earnings call and corporate events data does not impact the overall score.

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 Limited generates revenue primarily through the sale of its diverse portfolio of pharmaceutical products. The company earns money by developing and marketing generic drugs, which are less expensive alternatives to brand-name drugs, thus catering to a broad patient base. Additionally, Zydus Lifesciences focuses on specialty drugs and biosimilars, which are biologically similar to existing brand-name drugs, offering cost-effective solutions for complex diseases. The company also invests in research and development to innovate and bring new products to market, enhancing its competitive edge. Revenue streams are further bolstered by strategic partnerships with global pharmaceutical firms and distribution networks that expand its reach across various geographies. The company's earnings are influenced by factors such as regulatory approvals, patent expirations, and market demand for its products.

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 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	230.96B	232.41B	195.47B	148.28B	168.78B	148.22B
Gross Profit	156.59B	169.03B	89.25B	90.09B	105.68B	93.42B
EBITDA	72.78B	68.95B	56.22B	36.71B	34.42B	32.33B
Net Income	45.26B	45.26B	38.59B	44.87B	19.60B	21.34B
Balance Sheet
Total Assets	372.02B	372.02B	292.81B	277.95B	257.56B	238.85B
Cash, Cash Equivalents and Short-Term Investments	78.08B	78.08B	13.58B	35.05B	14.20B	11.27B
Total Debt	32.13B	32.13B	8.04B	42.21B	11.95B	46.08B
Total Liabilities	108.43B	108.43B	71.79B	87.42B	60.68B	89.55B
Stockholders Equity	239.53B	239.53B	198.29B	170.00B	175.16B	129.92B
Cash Flow
Free Cash Flow	0.00	50.64B	23.21B	9.02B	16.58B	24.39B
Operating Cash Flow	0.00	67.77B	32.28B	21.04B	26.89B	32.93B
Investing Cash Flow	0.00	-83.72B	-14.75B	11.54B	11.71B	-7.22B
Financing Cash Flow	0.00	20.14B	-18.10B	-8.68B	-44.00B	-25.49B

Zydus Lifesciences Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1037.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1037 is above the 20-day moving average (MA) of 1017.19, above the 50-day MA of 986.59, and above the 200-day MA of 939.61, indicating a bullish trend. The MACD of 17.07 indicates Negative momentum. The RSI at 61.06 is Neutral, neither overbought nor oversold. The STOCH value of 67.34 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	76 Outperform	1.10T	19.41	16.23%	0.60%	15.86%	2.02%
CIPLA	73 Outperform	1.27T	23.64	16.90%	0.82%	6.40%	25.27%
TORNTPHARM	73 Outperform	1.23T	60.30	25.17%	0.88%	7.63%	15.39%
ZYDUSLIFE	72 Outperform	₹1.04T	22.77		1.06%	14.52%	9.46%
LUPIN	72 Outperform	939.18B	25.24	19.08%	0.58%	12.40%	63.16%
MANKIND	66 Neutral	1.10T	56.64	13.89%	0.04%	21.66%	-4.92%
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.