Zydus Wellness Ltd

About

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)

Key Points

Acquistion by Cadilla Healthcare [1]
ZWL started its business under the name Carnation Health foods and Cadilla Healthcare acquired 61.5% of the company on June 8 2006, making it as a subsidiary. Cadilla transferred its consumer products division and renamed the company as Zydus wellness Limited.

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  • Market Cap 12,849 Cr.
  • Current Price 2,019
  • High / Low 2,477 / 1,771
  • Stock P/E 40.0
  • Book Value 736
  • Dividend Yield 0.25 %
  • ROCE 6.46 %
  • ROE 6.19 %
  • Face Value 10.0

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 19.30% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 21.39%

Cons

  • Stock is trading at 2.74 times its book value
  • Tax rate seems low
  • Company has a low return on equity of 6.25% for last 3 years.
  • Promoter holding has decreased over last 3 years: -7.72%

Peer comparison

Sector: FMCG Industry: Food - Processing - Indian

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
145 416 620 326 333 488 537 342 382 606 598 384
108 330 472 296 295 383 415 315 332 460 457 353
Operating Profit 38 86 149 30 37 105 122 27 50 145 140 31
OPM % 26% 21% 24% 9% 11% 21% 23% 8% 13% 24% 24% 8%
Other Income 10 -2 -24 -6 -2 -2 2 -95 -32 2 2 3
Interest 0 29 35 35 35 35 35 31 10 8 6 7
Depreciation 2 6 10 4 5 7 6 6 6 6 6 6
Profit before tax 46 49 80 -15 -5 61 83 -105 2 133 131 21
Tax % 11% -26% -1% 18% 178% -12% -7% 0% 0% -0% 0% -2%
Net Profit 40 62 80 -12 4 69 89 -105 2 133 131 21
EPS in Rs 10.16 10.81 13.94 -2.08 0.74 11.98 15.47 -16.55 0.27 20.92 20.56 3.37

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 TTM
336 337 388 404 431 397 431 513 843 1,767 1,867 1,969
252 259 291 319 331 305 331 387 658 1,446 1,522 1,603
Operating Profit 84 77 97 85 100 91 99 125 185 321 344 366
OPM % 25% 23% 25% 21% 23% 23% 23% 24% 22% 18% 18% 19%
Other Income 7 9 16 19 28 32 32 35 28 -33 -123 -24
Interest 0 0 0 0 0 0 1 2 30 140 84 31
Depreciation 1 4 4 0 8 7 7 9 13 26 25 24
Profit before tax 90 82 108 104 120 117 124 150 171 121 112 286
Tax % 34% 17% 8% 5% 7% 10% 10% 9% -0% -17% -6%
Net Profit 59 68 97 96 109 103 109 134 169 142 119 287
EPS in Rs 15.22 17.32 24.85 24.69 27.88 26.43 27.89 34.27 29.33 24.58 18.66 45.12
Dividend Payout % 26% 29% 24% 24% 22% 25% 23% 23% 17% 20% 27%
Compounded Sales Growth
10 Years: 19%
5 Years: 36%
3 Years: 54%
TTM: 16%
Compounded Profit Growth
10 Years: 15%
5 Years: 19%
3 Years: 24%
TTM: 98%
Stock Price CAGR
10 Years: 16%
5 Years: 18%
3 Years: 18%
1 Year: 8%
Return on Equity
10 Years: 11%
5 Years: 8%
3 Years: 6%
Last Year: 6%

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 Sep 2021
39 39 39 39 39 39 39 39 58 58 64 64
Reserves 103 148 217 286 367 439 518 652 3,329 3,403 4,504 4,622
Borrowings 0 0 0 0 0 0 25 25 1,569 1,519 550 540
77 80 93 99 102 89 100 112 503 610 549 406
Total Liabilities 219 267 349 425 508 568 682 829 5,459 5,590 5,666 5,632
59 96 94 95 84 82 103 104 4,567 4,674 4,667 4,702
CWIP 31 0 0 0 0 0 0 0 10 4 4 7
Investments 0 0 0 5 0 94 30 148 46 110 0 36
130 171 255 324 423 391 550 577 835 802 995 887
Total Assets 219 267 349 425 508 568 682 829 5,459 5,590 5,666 5,632

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
43 62 69 91 69 90 77 69 149 259 287
-40 -2 13 13 29 -28 -72 -59 -4,092 -17 -10
-14 -18 -23 -27 -27 -58 -6 -2 4,052 -260 -216
Net Cash Flow -11 42 59 77 71 4 -1 8 109 -18 60

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
Debtor Days 1 1 1 2 1 3 3 6 42 24 18
Inventory Days 79 104 120 108 76 73 127 113 393 168 158
Days Payable 135 159 136 191 146 191 264 254 662 289 189
Cash Conversion Cycle -55 -54 -14 -82 -69 -116 -134 -135 -227 -97 -13
Working Capital Days -46 -42 -32 -48 -37 -38 -36 -8 4 -3 12
ROCE % 50% 49% 36% 33% 26% 23% 23% 7% 6% 6%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
72.54 67.62 67.62 67.62 67.62 67.82 67.85 64.82 64.82 64.82 64.82 64.82
4.87 3.65 4.27 4.38 4.14 3.30 2.01 1.39 1.59 2.76 2.96 2.94
8.40 7.06 19.15 19.29 20.74 21.51 22.44 26.08 26.17 24.96 24.76 25.49
14.18 21.67 8.96 8.71 7.50 7.37 7.71 7.71 7.42 7.46 7.46 6.75

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