ICICI Direct has given Buy recommendation for Zydus Wellness with a target price of Rs. 2200 in its research report issued on Feb 03, 2021

ICICI Direct’s research report on Zydus Wellness

Zydus Wellness (ZWL) is one of the FMCG companies present in healthcare, nutrition & related products. The company has six brands i.e. Sugarfree, Complan, Glucon-D, Nycil, Everyuth & Nutrilite It commands dominant market share in sugar substitute (96%), prickly heat powder (34%) & glucose powder (58.1%) categories The company has more than 850 distributors with direct reach of 0.55 million retail outlets. Its high gross margins at ~55% give it a leeway to spend ~13% of sales on advertisement to support new products

Outlook

We continue to maintain our BUY rating on the stock We value the stock at Rs 2200 on ascribing 30x FY24 earnings multiple.

 

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