Hold Zydus Lifesciences, target price Rs 1,090: JM Financial

JM Financial has a hold call on Zydus Lifesciences with a target price of Rs 1,090. The current market price of Zydus Lifesciences is Rs 986.1. Zydus Lifesciences, incorporated in 1995, is a Large Cap company with a market cap of Rs 99365.61 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. The company has reported net profit after tax of Rs 898.10 Crore in latest quarter.

The company's top management includes Mr.Pankaj R Patel, Dr.Sharvil P Patel, Mr.Ganesh N Nayak, Mr.Mukesh M Patel, Mr.Bhadresh K Shah, Ms.Apurva S Diwanji, Mr.Monappa Arun Akhil, Mrs.Upasana Konidela, Ms.Shelina P Parikh. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2024, the company has a total of 101 Crore shares outstanding.

Investment Rationale
JM Financial believes this quarter would see impact of Asacol HD competition on Zydus Life. However, they expect this impact to be gradual than earlier expectations. Revlmid sales will be minimal (generally supplies in 1Q & 4Q). Overall we expect top line and margins to come off a bit QoQ. The brokerage has a Hold rating on Zydus Lifesciences with a target price of Rs 1,090.

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.