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Zydus Lifesciences Ltd logo

Zydus Lifesciences Ltd

NSE: ZYDUSLIFE BSE: 532321

899

(2.20)%

Tue, 03 Feb 2026, 07:18 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.5x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Cadila Healthcare's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Cadila Healthcare's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cadila Healthcare's earnings are expected to grow significantly at over 20% yearly.
  • Cadila Healthcare's earnings growth is expected to exceed the India market average.
  • Cadila Healthcare's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Cadila Healthcare's earnings are expected to exceed the low risk growth rate next year.
  • Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
  • An improvement in Cadila Healthcare's performance (ROE) is expected over the next 3 years.
  • Cadila Healthcare's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Cadila Healthcare is expected to decrease over the next 2 years.
  • Cadila Healthcare's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Cadila Healthcare is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Cadila Healthcare's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Cadila Healthcare's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Cadila Healthcare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cadila Healthcare is profitable, therefore cash runway is not a concern.
  • Cadila Healthcare is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (48.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.1x debt.
  • Cadila Healthcare's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (55% vs 61.1% today).
  • Cadila Healthcare's level of debt (61.1%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Cadila Healthcare board of directors is about average.
  • Sharvil's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Sharvil's remuneration is higher than average for companies of similar size in India.
  • Cadila Healthcare individual insiders have only sold shares in the past 3 months.

misc

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Pros

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    Cons

    • Cadila Healthcare has significant price volatility in the past 3 months.

    past

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    Pros

    • Cadila Healthcare's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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    Cons

    • Cadila Healthcare's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Cadila Healthcare used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
    • Cadila Healthcare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Cadila Healthcare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Cadila Healthcare's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.

    value

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    Pros

    • 532321 outperformed the Pharmaceuticals industry which returned 26.7% over the past year.
    • 532321 outperformed the Market in India which returned -14.5% over the past year.
    • BSE:532321 is up 8.6% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
    • BSE:532321 is up 8.6% along with the India market (8%) over the past month.
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    Cons

    • Cadila Healthcare's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Cadila Healthcare's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Cadila Healthcare is overvalued based on assets compared to the IN Pharmaceuticals industry average.
    • Cadila Healthcare is poor value based on expected growth next year.
    • Cadila Healthcare is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
    • Cadila Healthcare is overvalued based on earnings compared to the India market.

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