Buy Zydus Lifesciences; target of Rs 500: ICICI Direct

ICICI Direct's research report on Zydus Lifesciences

Zydus is a leading pharma company with family pedigree having a presence in domestic branded formulations, US generics and is in the process of repurposing itself into niche areas of specialty pharmaceuticals, biosimilars and vaccines. FY22 revenue break-up – US: 39%, India: 32%, Wellness: 13%, Europe & emerging markets including countries in LatAm, Asia Pacific & Africa: 10% • Zydus is the fourth largest pharma company in India with 14 brands among Top 300 pharma brands in India and nine with Rs 100 crore+ sales.

Outlook

We upgrade the stock from HOLD to BUY for improved risk-reward proposition as we see . Valued at Rs 500 i.e., 14x FY25E EPS of 35.5.

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