Buy Zydus Wellness, target price Rs 2250: ICICI Securities

ICICI Securities has buy call on Zydus Wellness with a target price of Rs 2250. The current market price of Zydus Wellness Ltd. is Rs 1581.65. Time period given by analyst is one year when Zydus Wellness Ltd. price can reach defined target.

Zydus Wellness Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 10002.34 Crore) operating in FMCG sector.

Zydus Wellness Ltd. key Products/Revenue Segments include Personal Care and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 390.78 Crore, up .97 % from last quarter Total Income of Rs 387.01 Crore and up 1.74 % from last year same quarter Total Income of Rs 384.10 Crore. Company reported net profit after tax of Rs 23.30 Crore in latest quarter.

Investment Rationale
The brokerage believes the focus on research-based products is what provides longevity to organisations. Emphasis on maintaining quality despite intense competition and inflation woes aid confidence on brand values. The results post the acquisition (of Heinz portfolio) have been encouraging notwithstanding inflation concerns and missed summer sales for the last two years. Successful brand extensions are aiding overall growth.

Promoter/FII Holdings
Promoters held 64.82 per cent stake in the company as of 31-Dec-2021, while FIIs owned 3.39 per cent, DIIs 24.8 per cent.