Zydus Lifesciences Ltd.
Pharma · NSE
52-week range
₹836 – ₹1,059
From 52w high
-11.2%
RSI (14)
58.6
vs SMA 50 / 200
↑ 50 · ↓ 200
Zydus Lifesciences (₹940) trades near its 200-DMA of ₹941.93 with a PE of 19.2x — among the lowest in its pharma peer group, which ranges from 18.96x (Dr. Reddy's) to 69.4x (Max Healthcare). Revenue grew 30.3% over five years but earnings grew only 1.9% over the same period, compressing the earnings growth story relative to topline expansion. Active USFDA regulatory activity — including a seven-observation notice at the Ahmedabad biologics plant and a concurrent oncology facility approval — marks a mixed near-term compliance backdrop.
- ✓PE of 19.2x ranks 2nd lowest among 6 pharma peers (peer range: 18.96x–69.4x), with a forward PE of 22.5x, suggesting the market prices in limited premium over current earnings.
- ✓Debt trend is classified as falling, with FCF positive in 4 of available years and a consistency score of 71, reflecting relative balance-sheet discipline over the measurement period.
- ✓Quality score of 51 ranks 2nd among 6 sector peers in the available dataset, above DRREDDY (32), CIPLA (30), and APOLLOHOSP (42).
- ✓USFDA approval for the oncology injectable facility (April 2026) and the launch of the Shield multi-cancer screening test with Guardant Health signal continued pipeline and regulatory execution on select fronts.
- ✗5-year earnings growth of 1.9% versus 5-year revenue growth of 30.3% points to a sustained gap between topline and bottom-line compounding; the source of this divergence — whether cost inflation, R&D reinvestment, or margin compression — is not explained by the available data.
- ✗USFDA issued seven observations for the Ahmedabad biologics injectable plant (May 2026); the nature and severity of the observations are not detailed in available news, introducing uncertainty about remediation timelines and regulatory clearance for that facility.
- ✗ROE data is unavailable for ZYDUSLIFE in the current dataset, and the persistence metric shows ROE above 15% in only 3 of the years tracked, limiting confidence in sustained return generation.
- ✗Price has returned 7.29% over 12 months and currently sits marginally below the 200-DMA (₹940 vs ₹941.93), with resistance cluster at ₹941–₹962.9 immediately above current levels.
- ·Zydus received seven USFDA observations for its biologics injectable plant in Ahmedabad (reported May 6, 2026 via CNBC TV18); separately, the company received USFDA approval for an oncology injectable facility, reflecting active but mixed regulatory engagement across manufacturing sites.
- ·A tax demand and penalty of ₹9 million each was disclosed (May 2026) while a GST appeal win resulted in a ₹1.66 million penalty being dropped — routine litigation activity across subsidiaries with no single item appearing material at the group level.
- ·Zydus and Guardant Health announced the planned India launch of the Shield multi-cancer early detection test (May 2026), representing an extension into diagnostics beyond the core generics and biologics business.
- ?What is driving the gap between 30.3% revenue growth and 1.9% earnings growth over five years — is it R&D reinvestment, input cost inflation, or a structural shift in product mix toward lower-margin segments?
- ?How material is the Ahmedabad biologics plant to Zydus's US export revenue, and what is the typical remediation timeline for USFDA observations of this type in comparable situations?
- ?Does the quality score of 51 and consistency score of 71 reflect a durable operational profile, or are these metrics sensitive to a small number of high-performing years in the measurement window?
- ?How does Zydus's pipeline of complex generics, biologics, and diagnostics compare in terms of revenue contribution timeline relative to its current PE and forward PE pricing?
PE
19.2
Forward PE
22.5
ROE
—
Profit margin
+18.9%
D/E
34.30
Dividend yield
+1.2%
Quality score
51/100
ROE 5y above 15%
3/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.