Buy Zydus Lifesciences; target of Rs 1100: Sharekhan

Sharekhan is bullish on Zydus Lifesciences has recommended buy rating on the stock with a target price of Rs 1100 in its research report dated March 20, 2024.

Broker Research

March 21, 2024 / 17:02 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Sharekhan's research report on Zydus Lifesciences

We reiterate a Buy on Zydus as domestic sales for February 2024 grew by 11.2% (IPM grew by 9%) and volume growth of 0.8% (IPM volume growth of 0.2%) driven by key brands like Lipaglyn, Monotax and Amicin. Zydus received approval and launched Finasteride and Tadalafil Capsules in the US market where it will enjoy 180 days of exclusivity. Finasteride and Tadalafil is used to treat benign prostatic hyperplasia. Zydus is focusing on specialty products both in India and the US through rare and orphan disease portfolio which to aid the company towards reaching $100 million in the specialty portfolio by FY26E.

Outlook

We expect earnings to clock a 15% CAGR from FY24-26E led by slew of approvals in high margin business like Specialty and injectables leading to double digit growth in both US and India business, hence we increase our PT to Rs. 1100/ share. At CMP, the stock is trading at 24.5x of FY25E EPS of Rs. 39.6 and 21x of FY26E EPS of Rs. 45 per share.

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