Zydus Wellness Ltd.
NSE: ZYDUSWELLNIFTY500
₹525.55+31.6%1Y
Last updated 03:03:29 IST· Public market feed (~15 min delay during market hours)
Zydus Wellness Ltd.: A 30-second snapshot
Zydus Wellness trades at ₹502, up 39.4% over the past 12 months and 9.1% below its 52-week high, with the price above both the 50-DMA (₹464) and 200-DMA (₹446). The trailing PE of 76.9 compares to a forward PE of 41.7, implying the market is pricing in a meaningful earnings step-up; 5-year revenue growth stands at 108.9% though profit margin is 6.11%. Quality score of 42 ranks the stock 6th of 6 FMCG peers, and debt-to-equity of 53.3 is an outlier relative to typical FMCG balance-sheet norms.
P/E
76.9
Forward P/E
41.7
ROE
—
Debt / Equity
53.31
Profit Margin
+6.1%
Div. Yield
+0.2%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
52/100
News
1 headlines · 0 positive · 0 negative
Recent context
- ·The sole news item in the current window is a Saksham Niveshak drive for unclaimed dividends (April 2026), a routine governance initiative with no earnings or strategic significance — news flow is effectively absent for this period.
- ·The gap between trailing PE of 76.9 and forward PE of 41.7 (a compression of 35 PE points) concentrates valuation risk on the delivery of the earnings step-up that the forward multiple implies.
- ·Support levels cluster at ₹477, ₹421, and ₹410 — the nearest support is 5% below current price, while the sole resistance level of ₹552 is 10% above, defining the near-term technical range.
Strengths
- +Five-year revenue growth of 108.9% indicates substantial top-line expansion, likely reflecting the Heinz India acquisition and subsequent brand integration across the Complan, Glucon-D, and Nycil portfolio.
- +Price is above both the 50-DMA (₹464) and 200-DMA (₹446), and the 3-month gain of 21.3% has been achieved with RSI at 53.7 — within the neutral zone — avoiding an overbought reading.
- +Debt trend is classified as falling and FCF was positive in 4 of the available years, pointing to improving cash generation even if margins remain compressed.
- +Forward PE of 41.7 represents a meaningful compression from the trailing PE of 76.9, suggesting analyst consensus models a significant earnings recovery in the coming period; the stock trades broadly in line with the FMCG peer PE range (19–79 across the 6-stock peer set).
Weaknesses
- −Profit margin of 6.11% is well below FMCG peers operating at structurally higher margins (Nestle India and Hindustan Unilever as reference), indicating the cost base or brand-building spend has not yet been absorbed into profitability.
- −Debt-to-equity of 53.3 is an outlier for the FMCG sector where the typical ratio is below 1.0; whether this reflects lease capitalisation or acquisition-related debt, the leverage quantum requires monitoring against cash-flow coverage.
- −ROE data is unavailable across all historical years, making it impossible to evaluate whether the 108.9% revenue expansion has generated adequate returns on the equity deployed in acquisitions and working capital.
- −Quality score of 42 ranks last (6th of 6) in the FMCG peer group, with consistency score of 44 — both metrics below mid-pack — reflecting a fundamental profile that lags sector leaders despite strong price performance over 12 months.
Open questions
- ?Has the 108.9% revenue growth over 5 years been driven primarily by the Heinz India acquisition, and if so, at what point does organic growth become the dominant driver of the top-line?
- ?What is the composition of the 53.3 debt-to-equity figure — how much reflects financial borrowings versus lease liabilities, and what is the interest-coverage ratio at current earnings levels?
- ?Does the compression from trailing PE of 76.9 to forward PE of 41.7 reflect analyst consensus on a specific earnings recovery event, or is it driven by a small number of outlier forecasts within the 7-analyst coverage?
- ?How does Zydus Wellness rank on ROCE (return on capital employed) versus the FMCG peer group, given that ROE data is absent and the acquisition-heavy balance sheet may distort equity-based return metrics?
Peer comparison: FMCG
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ZYDUSWELL | Zydus Wellness Ltd.You're viewing | 76.9 | — | 42 |
| Industry avg | across 5 peers | 55.7 | +39.5% | 52 |
| NESTLEIND | Nestle India Ltd. | 78.7 | +76.3% | 61 |
| HINDUNILVR | Hindustan Unilever Ltd. | 50.2 | +21.6% | 58 |
| BRITANNIA | Britannia Industries Ltd. | 51.3 | +53.3% | 50 |
| TATACONSUM | Tata Consumer Products Ltd. | 79.4 | +6.9% | 45 |
| ITC | ITC Ltd. | 19.0 | — | 44 |
Technical state
Current price
₹502.15
SMA 50
₹464.23
SMA 200
₹445.98
RSI (14)
53.7 (neutral)
From 52w high
-9.1%
1Y return
+39.4%
3M return
+21.3%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
₹477.10
₹420.95
₹410.15
Algorithmic resistance levels
₹552.40
Risk flags
- mediumDebt-to-equity of 53.3 is far above the FMCG sector norm (typically below 1.0); even if the figure partly reflects lease-liability accounting or a small equity base, the absolute leverage position warrants verification against standalone borrowings and interest-coverage metrics.
- mediumProfit margin of 6.11% is below what FMCG sector leaders typically sustain — Hindustan Unilever and Nestle India operate at materially higher margins — suggesting limited pricing power, an elevated cost structure, or ongoing integration costs from acquisitions.
- mediumROE data is absent (years above 15% = 0, no historical ROE reported); capital-efficiency trajectory cannot be assessed against the 5-year revenue growth of 108.9% or against peers whose ROE ranges from 6.94% (Tata Consumer) to 76.34% (Nestle India).
- lowQuality score of 42 ranks 6th (last) of 6 FMCG peers; consistency score of 44 and analyst-rating data unavailable (7 analysts on coverage, no consensus rating reported) limit the ability to benchmark capital quality.
- lowOnly 1 news item returned in the analysis window — a routine unclaimed-dividend drive announcement — providing no signal on earnings revisions, regulatory actions, or competitive developments.
Cross-section contradictions
- Stock is up 39.4% over 12 months and trades above both the 50-DMA (₹464) and 200-DMA (₹446), yet quality score ranks last among 6 FMCG peers — price momentum and peer-relative fundamental quality are diverging.
- Five-year revenue growth of 108.9% indicates significant scale expansion, but profit margin has reached only 6.11%, and ROE data is absent — revenue growth has not demonstrably translated into proportionate earnings quality or capital returns.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days