Prabhudas Lilladher's research report on Zydus Lifesciences
Zydus Lifesciences (ZYDUSLIF) Q3 profitability ex of gRevlimid was strong (with EBIDTA growth of +25%), aided by higher US and domestic formulation sales. We believe that company’s steady domestic franchise, strong balance sheet and potential new launches in US will help negate pricing pressure and likely competition in some key products like gAsacol in US. Moreover, ZYDUSLIF has initiated cost efficiency programs and is also working on robust pipeline of complex products including injectables, transdermals, NCE, biosimilars and vaccines which are expected to materialize over next 2– 3 years. Our FY24/25E EPS stands unchanged.
Outlook
We maintain our ‘Accumulate’ rating with revised TP of Rs480 (Rs465 earlier), as we roll forward to Dec 2024E earnings.
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