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Zydus Wellness Ltd

NSE: ZYDUSWELL BSE: 531335

384.90

(0.01%)

Tue, 03 Mar 2026, 09:52 am

Zydus Wellness Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (4.9x coverage).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Zydus Wellness's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Zydus Wellness's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Zydus Wellness is expected to increase by more than 50% in 2 years time.
  • Zydus Wellness's earnings are expected to grow significantly at over 20% yearly.
  • Zydus Wellness's earnings growth is expected to exceed the India market average.
  • Zydus Wellness's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Zydus Wellness's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Zydus Wellness's net income is expected to increase by more than 50% in 2 years time.
  • An improvement in Zydus Wellness's performance (ROE) is expected over the next 3 years.
  • Zydus Wellness's revenue growth is expected to exceed the India market average.
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Cons

  • Zydus Wellness's earnings are expected to decrease over the next year.
  • Zydus Wellness is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Food industry average.
  • Zydus Wellness's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Zydus Wellness's revenue is expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Zydus Wellness is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zydus Wellness is profitable, therefore cash runway is not a concern.
  • Zydus Wellness is profitable, therefore cash runway is not a concern.
  • Low level of unsold assets.
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Cons

  • Debt is not well covered by operating cash flow (17.1%, less than 20% of total debt).
  • Debt is not covered by short term assets, assets are 0.5x debt.
  • Zydus Wellness's long term commitments exceed its cash and other short term assets.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
  • Zydus Wellness's level of debt (43.9%) compared to net worth is high (greater than 40%).

management

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Pros

  • Tarun's remuneration is about average for companies of similar size in India.
  • Tarun's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Zydus Wellness individual insiders in the past 3 months.
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Cons

  • The average tenure for the Zydus Wellness board of directors is less than 3 years, this suggests a new board.
  • The average tenure for the Zydus Wellness management team is less than 2 years, this suggests a new team.

past

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Pros

  • Zydus Wellness's year on year earnings growth rate has been positive over the past 5 years.
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Cons

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

value

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Pros

  • ZYDUSWELL outperformed the Market in India which returned -14.5% over the past year.
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Cons

  • Zydus Wellness's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
  • Zydus Wellness's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
  • Zydus Wellness is overvalued based on assets compared to the IN Food industry average.
  • Zydus Wellness is poor value based on expected growth next year.
  • Zydus Wellness is overvalued based on earnings compared to the IN Food industry average.
  • Zydus Wellness is overvalued based on earnings compared to the India market.
  • ZYDUSWELL underperformed the Food industry which returned 18.8% over the past year.
  • NSEI:ZYDUSWELL is down -2.1% underperforming the Food industry which returned 5% over the past month.
  • NSEI:ZYDUSWELL is down -2.1% underperforming the market in India which returned 8% over the past month.

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