Buy Zydus Wellness, target price Rs 1740: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Zydus Wellness with a target price of Rs 1740. The current market price of Zydus Wellness is Rs 1467.95.

Zydus Wellness, incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 9338.65 Crore) operating in FMCG sector.

Zydus Wellness key Products/Revenue Segments include Personal Care and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 713.70 Crore, up 71.39 % from last quarter Total Income of Rs 416.42 Crore and up 11.21 % from last year same quarter Total Income of Rs 641.74 Crore. Company has reported net profit after tax of Rs 145.33 Crore in latest quarter.

The company’s top management includes Dr.Sharvil P Patel, Mr.Tarun G Arora, Mr.Kulin S Lalbhai, Mr.Savyasachi S Sengupta, Ms.Dharmishtaben N Raval, Mr.Srivishnu Raju Nandyala, Mr.Ashish Bhargava, Mr.Ganesh N Nayak. Company has Dhirubhai Shah & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 6 Crore shares outstanding.

Investment Rationale
The stock has underperformed the broader market and is trading at 24x/20x its FY2024E/FY2025E earnings. In view of the future growth prospects and attractive valuation, ZWL can be considered a good pick in the mid-to-small cap space.

Promoter/FII Holdings
Promoters held 66.45 per cent stake in the company as of 31-Mar-2023, while FIIs owned 3.87 per cent, DIIs 22.18 per cent.