Zydus Lifesciences Limited Fundamental Analysis (NSE: ZYDUSLIFE.NS)
Zydus Lifesciences Limited Fundamental Analysis (NSE: ZYDUSLIFE.NS)
Zydus Lifesciences Limited (NSE: ZYDUSLIFE.NS) shows moderate financial fundamentals with a PE ratio of 24.96, profit margin of 15.78%, and ROE of 16.40%. The company generates $283.7B in annual revenue with strong year-over-year growth of 18.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ZYDUSLIFE.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakZYDUSLIFE.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentZYDUSLIFE.NS trades at attractive valuation levels.
Growth Score
ExcellentZYDUSLIFE.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateZYDUSLIFE.NS shows balanced financial health with some risks.
Profitability Score
ExcellentZYDUSLIFE.NS achieves industry-leading margins.
Key Financial Metrics
Is ZYDUSLIFE.NS Expensive or Cheap?
P/E Ratio
ZYDUSLIFE.NS trades at 24.96 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ZYDUSLIFE.NS's PEG of -19.56 indicates potential undervaluation.
Price to Book
The market values Zydus Lifesciences Limited at 3.81 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.80 times EBITDA. This signals the market has high growth expectations.
How Well Does ZYDUSLIFE.NS Make Money?
Net Profit Margin
For every $100 in sales, Zydus Lifesciences Limited keeps $15.78 as profit after all expenses.
Operating Margin
Core operations generate 18.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.40 in profit for every $100 of shareholder equity.
ROA
Zydus Lifesciences Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zydus Lifesciences Limited generates limited operating cash flow of $9.39B, signaling weaker underlying cash strength.
Free Cash Flow
Zydus Lifesciences Limited generates weak or negative free cash flow of $779.04M, restricting financial flexibility.
FCF Per Share
Each share generates $0.78 in free cash annually.
FCF Yield
ZYDUSLIFE.NS converts 0.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-19.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How ZYDUSLIFE.NS Stacks Against Its Sector Peers
| Metric | ZYDUSLIFE.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.96 | 30.97 | Better (Cheaper) |
| ROE | 16.40% | 515.00% | Weak |
| Net Margin | 15.78% | 30197.00% | Weak |
| Debt/Equity | 0.00 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 5.71 | Weak Liquidity |
| ROA | 0.00% | -16.00% (disorted) | Weak |
ZYDUSLIFE.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zydus Lifesciences Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
65.88%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
291.28%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
175.16%
Industry Style: Defensive, Growth, Innovation
High Growth