Prabhudas Lilladher's research report on Zydus Lifesciences
Zydus Lifesciences (ZYDUSLIF) Q1 EBITDA of Rs21.1bn (up 37% YoY) was 17% above our estimate aided by higher US sales. We believe the company’s steady domestic franchise, strong balance sheet and potential new launches in the US will help negate pricing pressure and likely competition in some key products like gAsacol. Moreover, ZYDUSLIF is working on a robust pipeline of complex products, including injectables, transdermals, NCE, biosimilars and vaccines, which are expected to materialize over the next 2–3 years.
Outlook
Our FY25/26E EPS stands increased by 18.4%/15.7% for FY25E/26E as we factor in higher US sales and margins. We maintain our ‘Accumulate’ rating with revised TP of Rs1,305, valuing at 25x FY26E.
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