Zydus Lifesciences Ltd

₹ 358 1.09%
28 Jun - close price
About

In 1995, the group was restructured and thus was formed Cadila Healthcare under the aegis of the Zydus group. From a humble turnover Rs. 250 crores in 1995 the group witnessed a significant financial growth and registered a turnover of over Rs. 14,253 crores in FY20.
Adhering to its brand promise of being dedicated to life in all its dimensions, Zydus continues to innovate with an unswerving focus to address the unmet healthcare needs. Simultaneously it rededicates itself to its mission of creating healthier, happier communities across the globe

Key Points

US Generic business (45% of revenues)
Ranked 4th among US generic companies [1], having grown sales from ~$211 mn in FY11 to $828mn in FY20

Has secured highest number of ANDA approvals (#230) in last 4 years, [2] with total 337 ANDA approvals, 117 DMF filings and 190+ launched products [2]

Has a rich pipeline of complex generics including injectables, orphan and specialty drugs addressing market size of ~$119bn [3]

Plans to file ~40 ANDA and 1 NDA per year over the next 3 years. [4]

Spends 7-8% of revenues in R&D [5]

  • Market Cap 36,624 Cr.
  • Current Price 358
  • High / Low 655 / 319
  • Stock P/E 8.33
  • Book Value 166
  • Dividend Yield 0.70 %
  • ROCE 26.3 %
  • ROE 29.3 %
  • Face Value 1.00

Pros

  • Company has delivered good profit growth of 24.19% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 17.65%

Cons

  • The company has delivered a poor sales growth of 10.24% over past five years.
  • Tax rate seems low
  • Earnings include an other income of Rs.2583.10 Cr.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
3,496 3,367 3,638 3,752 3,515 3,659 3,633 3,670 4,025 3,785 3,640 3,864
2,864 2,731 2,940 2,961 2,724 2,845 2,866 2,843 3,092 2,924 2,895 3,161
Operating Profit 632 636 698 791 790 814 766 828 933 861 745 703
OPM % 18% 19% 19% 21% 22% 22% 21% 23% 23% 23% 20% 18%
23 -251 14 -8 38 -70 54 -104 54 2,454 61 79
Interest 89 90 80 82 68 45 27 23 27 30 31 38
Depreciation 172 172 174 178 173 175 176 175 183 185 177 185
Profit before tax 394 122 457 522 588 524 617 526 777 3,100 598 558
Tax % 20% 32% 20% 21% 20% 19% 17% -39% 18% 3% 18% 20%
Net Profit 304 107 374 392 454 473 527 679 587 3,002 500 397
EPS in Rs 2.97 1.05 3.65 3.83 4.43 4.62 5.15 6.63 5.74 29.33 4.89 3.88

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
4,631 5,263 6,358 7,224 8,651 9,427 9,376 11,905 13,166 14,253 15,102 15,265
3,602 4,177 5,228 6,021 6,896 7,095 7,474 9,074 10,174 11,455 11,758 11,924
Operating Profit 1,028 1,086 1,130 1,203 1,756 2,332 1,902 2,831 2,991 2,798 3,344 3,341
OPM % 22% 21% 18% 17% 20% 25% 20% 24% 23% 20% 22% 22%
11 49 32 30 45 112 127 111 183 -264 -171 2,583
Interest 70 183 169 90 68 53 45 91 194 342 164 127
Depreciation 127 158 185 201 287 292 373 539 599 696 725 713
Profit before tax 842 794 809 942 1,446 2,099 1,612 2,312 2,382 1,495 2,285 5,084
Tax % 13% 14% 15% 11% 18% 8% 8% 24% 22% 21% 6% 10%
Net Profit 711 653 654 804 1,151 1,934 1,488 1,776 1,849 1,177 2,134 4,487
EPS in Rs 6.95 6.37 6.38 7.85 11.24 18.89 14.53 17.35 18.06 11.49 20.84 43.83
Dividend Payout % 18% 24% 24% 23% 21% 17% 22% 20% 19% 30% 17% 6%
Compounded Sales Growth
10 Years: 11%
5 Years: 10%
3 Years: 5%
TTM: 1%
Compounded Profit Growth
10 Years: 21%
5 Years: 24%
3 Years: 35%
TTM: 92%
Stock Price CAGR
10 Years: 9%
5 Years: -7%
3 Years: 14%
1 Year: -44%
Return on Equity
10 Years: 23%
5 Years: 21%
3 Years: 22%
Last Year: 29%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
102 102 102 102 102 102 102 102 102 102 102 102
Reserves 2,069 2,484 2,842 3,337 4,149 5,597 6,858 8,642 10,284 10,273 12,890 16,897
1,092 2,289 2,918 2,700 2,651 2,442 5,207 5,407 7,899 7,986 4,584 4,221
1,348 1,548 1,512 1,847 2,144 2,208 2,937 3,632 4,945 5,115 6,189 6,575
Total Liabilities 4,611 6,423 7,374 7,986 9,047 10,350 15,104 17,783 23,231 23,477 23,765 27,795
1,833 2,857 3,026 3,124 3,352 3,748 5,755 6,483 12,164 12,230 12,133 12,253
CWIP 431 484 736 892 798 951 1,543 1,527 837 742 783 661
Investments 21 24 114 87 154 416 435 746 674 765 830 3,288
2,326 3,058 3,498 3,885 4,743 5,235 7,371 9,028 9,556 9,740 10,019 11,593
Total Assets 4,611 6,423 7,374 7,986 9,047 10,350 15,104 17,783 23,231 23,477 23,765 27,795

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
683 511 603 903 994 1,894 1,312 919 1,282 2,932 3,293 2,104
-466 -1,200 -682 -438 -465 -860 -2,872 -974 -3,977 -1,004 -835 1,154
-172 860 286 -529 -351 -935 2,316 52 1,885 -1,528 -2,549 -868
Net Cash Flow 44 171 207 -64 178 99 756 -3 -811 399 -90 2,390

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 60 64 55 57 67 68 89 98 110 94 76 80
Inventory Days 201 234 191 184 175 158 193 211 208 207 227 245
Days Payable 141 117 103 123 125 154 165 167 149 152 155 141
Cash Conversion Cycle 120 181 142 119 118 71 116 142 169 149 148 184
Working Capital Days 53 58 63 46 56 46 62 95 99 79 69 171
ROCE % 31% 24% 18% 18% 23% 29% 16% 18% 15% 12% 15% 26%

Shareholding Pattern

Numbers in percentages

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
74.79 74.88 74.88 74.88 74.88 74.88 74.88 74.88 74.88 74.88 74.88 74.88
4.69 4.49 4.58 4.41 4.56 4.38 5.24 5.23 4.65 4.11 3.79 2.53
11.60 12.51 12.62 12.90 12.59 12.50 11.72 11.30 10.50 11.25 11.80 12.83
0.13 0.13 0.13 0.14 0.19 0.19 0.19 0.19 0.07 0.07 0.07 0.08
8.79 8.00 7.80 7.67 7.78 8.05 7.97 8.40 9.90 9.69 9.46 9.69

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