Company Introduction
Headquarters Location: Ahmedabad, India
Core Business Summary: Zydus Lifesciences is a pharmaceutical company that develops, manufactures, and markets a wide range of healthcare products.
Overview
₹ 987
21.72
45
₹ 99,310 Cr
Company Overview
Industry Sector: Pharmaceuticals
Industry Trends
Industry Growth Next 5 Years: 10-12% CAGR
Key Demand Drivers: Increasing healthcare spending, growing demand for generic medicines, and rising awareness about animal healthcare
Last 5 Year Cagr Industry Growth: 12.5%
Major Competitors: Sun Pharma, Lupin, Dr. Reddy's Laboratories, and Cipla
Financials
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 9,427 | 9,376 | 11,905 | 13,166 | 14,253 | 14,404 | 15,110 | 17,237 | 19,547 | 23,242 |
| YoY % | -0.5% | +27.0% | +10.6% | +8.3% | +1.1% | +4.9% | +14.1% | +13.4% | +18.9% | |
| EBITDA | 2,624 | 2,275 | 3,370 | 3,590 | 3,494 | 4,061 | 4,055 | 4,583 | 6,148 | 7,974 |
| YoY % | -13.3% | +48.1% | +6.5% | -2.7% | +16.2% | -0.1% | +13.0% | +34.1% | +29.7% | |
| Net Profit | 1,964 | 1,517 | 1,810 | 1,899 | 1,204 | 2,185 | 4,618 | 2,092 | 3,973 | 4,673 |
| YoY % | -22.8% | +19.3% | +4.9% | -36.6% | +81.5% | +111.4% | -54.7% | +89.9% | +17.6% | |
| EPS | 18.89 | 14.53 | 17.35 | 18.06 | 11.49 | 20.84 | 43.83 | 19.37 | 38.36 | 44.97 |
| YoY % | -23.1% | +19.4% | +4.1% | -36.4% | +81.4% | +110.3% | -55.8% | +98.0% | +17.2% |
Growth Drivers
Historical Growth Drivers: Product innovation, new market entry, and strategic partnerships
Future Growth Drivers: Technology adoption (e.g., AI, cloud), regulatory changes, and macroeconomic trends such as increasing healthcare spending
Examples: Launch of new products like Lipaglyn and Gluconorm, entry into new markets like the US and Europe, and partnership with global companies like Gilead Sciences
Market Position
Competitive Position: Zydus Lifesciences is one of the top 10 pharmaceutical companies in India
Estimated Market Share: 4-5%
Technological Moat: Strong research and development capabilities, with a focus on innovation and quality
Strengths
- Diverse product portfolio
- Strong research and development capabilities
- Global presence
- Consistent financial performance
Weaknesses
- Dependence on a few key products
- Regulatory risks
- Competition from global players
- Cyclical exposure to generic pricing pressure
Valuations
Valuations for ZYDUSLIFE
| Formula | Bull | Base | Bear | Margin of Safety |
|---|---|---|---|---|
| Ben Graham | ₹ 814 | ₹ 814 | ₹ 300 | -21.2% |
| Peter Lynch | – | ₹ 450 | – | -119.5% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
Outlook
Opportunities: Growing demand for generic medicines, increasing healthcare spending, and rising awareness about animal healthcare
Risks: Regulatory risks, competition from global players, and cyclical exposure to generic pricing pressure
Horizon: 3-5 years
Analysis: Zydus Lifesciences is well-positioned to benefit from the growing demand for generic medicines and increasing healthcare spending. However, the company needs to navigate regulatory risks, competition from global players, and cyclical exposure to generic pricing pressure. With a strong research and development capability and a diverse product portfolio, the company is expected to deliver consistent financial performance over the next 3-5 years.
Stock Price Performance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Price | 320.85 | 442.90 | 385.05 | 344.25 | 263.85 | 441.80 | 354.40 | 492.40 | 999.80 | 877.50 |
| YoY % | +38.0% | -13.1% | -10.6% | -23.4% | +67.4% | -19.8% | +38.9% | +103.0% | -12.2% |
Stock 3 Year Rolling CAGR
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Average |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 8.09% | 11.98% | 6.18% | 3.04% | 1.97% | 6.17% | 8.96% | 10.48% | 7.11% |
| EBITDA | 8.70% | 16.42% | 1.21% | 4.19% | 5.09% | 4.11% | 14.88% | 20.28% | 9.36% |
| Net Profit | -2.69% | 7.77% | -12.71% | 4.79% | 56.53% | -1.44% | -4.89% | 30.72% | 9.76% |
| EPS | -2.79% | 7.52% | -12.84% | 4.89% | 56.25% | -2.41% | -4.35% | 32.41% | 9.84% |
| Price | 6.27% | -8.06% | -11.84% | 8.67% | 10.33% | 3.68% | 41.30% | 21.24% | 8.95% |
