Zydus Lifesciences Ltd

NSE: ZYDUSLIFE BSE: 532321

₹1126.80

(1.05%)

Wed, 05 Aug 2026, 00:53 am

Market Cap (in Cr)112368.8

PE Ratio22.50

Dividend0.09

Health Technology

Pharmaceuticals: Major

24.5K

Zydus Lifesciences Analysis

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%).

Cons

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

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.

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).

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).

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.

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%.

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.

Pros

Cons

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.

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.

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.

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.