Buy Zydus Lifesciences, target price Rs 1,078: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has a buy call on Zydus Lifesciences Ltd. with a target price of Rs 1078. The current market price of Zydus Lifesciences Ltd. is Rs 949.1. Zydus Lifesciences, incorporated in 1995, is a Large Cap company with a market cap of Rs 95511.73 crore, operating in the Pharmaceuticals sector.

Zydus Lifesciences' key Products/Revenue Segments include Pharmaceutical Products, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 5305.20 Crore, down -15.40 % from last quarter Total Income of Rs 6270.70 Crore and up 19.95 % from last year same quarter Total Income of Rs 4422.80 Crore. Company has reported net profit after tax of Rs 898.10 Crore in latest quarter.

Investment Rationale
Zydus has reported a healthy set of numbers as expected, however, sustainability of such numbers is the key. Going forward, the management expects double-digit growth across geographies of India and US, which Sharekhan by BNP Paribas has baked in their estimates. Hence, they have not revised their estimates. However, the brokerage has introduced FY27E numbers to their estimates.


Promoter/FII Holdings
Promoters held 74.98 per cent stake in the company as of 30-Sep-2024, while FIIs owned 7.52 per cent, DIIs 10.59 per cent.