Mehabe score: 5 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Zydus Wellness operates as an integrated consumer Company with business encompassing the entire value chain in the development, production, marketing and distribution of health and wellness products. The product portfolio of the Company includes brands like Sugar free, Everyuth and Nutralite.(Source : 202003 Annual Report Page No: 83) Site:ZYDUSWELL Main Symbol:ZYDUSWELL
Stock trades at 1715.0, below its 50dma 1876.86 and below its 200dma 2011.46. The stock remains bearish on technicals
The 52 week high is at 2476.85 and the 52week low is at 1613.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 19.30% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 21.39%
Weakness
– Tax rate seems low
– has a low return on equity of 6.25% for last 3 years.
-Promoter holding has decreased over last 3 years: -7.72%
Competition
– The industry trades at a mean P/E of 43.0x. Hatsun Agro trades at the industry’s max P/E of 105.57x. ZYDUSWELL trades at a P/E of 34.0x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. ZYDUSWELL has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 0.9%. The max 1- month return was given by GRM Overseas: a return of 24.58 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 384.0 cr compared to Rs 342.0 cr for period ended Sep 2020, a rise of 12.3% .
vis-vis 27.0 for period ended Sep 2020 .
Operating Margins expanded 17.8 bps for period ended Sep 2021 vis-vis Sep 2020.
Company reported operating profit of Rs 31.0 cr for period ended Sep 2021 and operating profit margin at 8.1 % for same period.
The EPS for quarter ended Sep 2021 is Rs 3.37 compared to Rs 20.56 for previous quarter ended Jun 2021 and Rs -16.55 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1969.0 cr for period ended TTM vis-vis sales of Rs 1867.0 cr for the period ended Mar 2021, a growth of 5.2%. The 3 year sales cagr stood at 32.7%.
Operating margins expanded to 19.0% for period ended TTM vis-vis 18.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 287.0 cr for period ended TTM vis-vis sales of Rs 119.0 cr for the period ended Mar 2021, rising 58.5%.
Company recorded a healthy Net Profit CAGR of 19.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 287.0 cr for period ended Mar 2021 vis-vis Rs 259.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 6.0% over the last 3 Years. – The stock has given a return of -9% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of 54% over the last 3 Years. – The compounded profit growth on a TTM basis is 98% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 3.39% vis-vis 2.94% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 6.99% vis-vis 6.75% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 19.30% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 21.39% – Tax rate seems low
– has a low return on equity of 6.25% for last 3 years.
-Promoter holding has decreased over last 3 years: -7.72%
