⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ZYDUSLIFE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | ZYDUSLIFE | Market Cap | 90,652 Cr. | Current Price | 901 ₹ | High / Low | 1,059 ₹ |
| Stock P/E | 19.3 | Book Value | 215 ₹ | Dividend Yield | 1.22 % | ROCE | 30.6 % |
| ROE | 31.1 % | Face Value | 1.00 ₹ | DMA 50 | 909 ₹ | DMA 200 | 935 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.22 % | PAT Qtr | 343 Cr. | PAT Prev Qtr | 1,157 Cr. |
| RSI | 47.4 | MACD | -1.32 | Volume | 4,81,945 | Avg Vol 1Wk | 6,63,319 |
| Low price | 795 ₹ | High price | 1,059 ₹ | PEG Ratio | 0.26 | Debt to equity | 0.35 |
| 52w Index | 40.1 % | Qtr Profit Var | -27.2 % | EPS | 46.2 ₹ | Industry PE | 27.6 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined from 1,157 Cr. to 343 Cr., showing earnings volatility. EPS at 46.2 ₹ remains strong.
- Margins & Returns: ROCE at 30.6% and ROE at 31.1% highlight excellent efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.35 is moderate, manageable within industry norms.
- Cash Flow: Supported by strong profitability and moderate leverage, enabling reinvestment capacity.
💹 Valuation
- P/E Ratio: 19.3 vs Industry PE of 27.6 → Undervalued relative to peers.
- P/B Ratio: Current Price 901 ₹ vs Book Value 215 ₹ → Premium valuation.
- PEG Ratio: 0.26 → Attractive valuation relative to growth.
- Intrinsic Value: Current price offers margin of safety supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
- Pharmaceutical company with diversified product portfolio across generics, specialty drugs, and wellness.
- Strong efficiency metrics (ROCE & ROE) reflect competitive advantage.
- Global presence and scale provide resilience in a competitive industry.
📈 Technicals & Entry Zone
- RSI at 47.4 → Neutral zone, neither oversold nor overbought.
- MACD negative (-1.32) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 880–900 ₹.
- Long-Term Holding: Strong fundamentals make it a solid long-term hold despite short-term volatility.
✅ Positive
- High ROCE (30.6%) and ROE (31.1%) indicate excellent efficiency.
- PEG ratio of 0.26 suggests attractive valuation relative to growth.
- DII holdings increased by 0.22%, showing domestic institutional support.
- Dividend yield of 1.22% provides shareholder returns.
⚠️ Limitation
- Quarterly PAT dropped sharply, highlighting earnings volatility.
- Moderate debt-to-equity ratio (0.35) adds financial risk.
- Stock trades at a premium to book value.
📉 Company Negative News
- FII holdings decreased by 0.28%, showing reduced foreign investor confidence.
- Stock has corrected from its 52-week high of 1,059 ₹ to current levels.
📈 Company Positive News
- DII holdings increased by 0.22%, reflecting domestic institutional support.
- Strong EPS at 46.2 ₹ supports valuation strength.
- 52-week performance up 40.1%, reflecting investor confidence.
🏭 Industry
- Industry PE at 27.6 suggests sector trades at higher multiples.
- ZYDUSLIFE trades at a discount relative to peers, supported by strong fundamentals and efficiency metrics.
🔎 Conclusion
ZYDUSLIFE demonstrates strong fundamentals with excellent return ratios, moderate debt, and consistent profitability. Valuations are attractive compared to industry peers, with PEG ratio indicating growth potential. Entry is favorable near 880–900 ₹ for long-term investors. Despite short-term earnings volatility and weak technical momentum, the company remains a solid long-term hold backed by strong efficiency and industry positioning.