Buy Zydus Wellness: Target Of Rs 2300: Sharekhan
Sharekhan is bullish on Zydus Wellness recommended buy rating on the stock with a target price of Rs 2300 in its research report dated November 02, 2020.
Nov 5, 2020 / 05:06 PM IST
Sharekhan's research repor on Zydus Wellness
Q2FY2021 revenues grew by 5% to Rs. 342 crore but a fall in gross margins dragged down OPM by 141 bps to 7.9%. However, excluding impact of GST budgetary support (ceased for Sitarganj plant from January) revenue would have grown by 9.3%. Sugarfree and Nycil registered strong double-digit growth. Company has identified three growth pillars for the medium to long term - 1) Driving synergistic benefits from Heinz acquisition, 2) new products and 3) wider international footprint. With a three-pillar strategy, ZWL is strongly placed to achieve earnings CAGR of 27% over FY2020-23.
We stick to our Buy rating with unchanged PT of Rs. 2,300.
For all recommendations report, click here
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