Prabhudas Lilladher has given Buy recommendation for Zydus Lifesciences with a target price of Rs. 450 in its research report issued on May 23, 2022
Prabhudas Lilladher’s research report on Zydus Lifesciences
CDH reported in line operating performance. Company’s steady domestic franchise, strong balance sheet and potential new launches like gRevlimid will help to negate pricing pressure and likely competition in some key products like gAsacol in US. Further company has initiated cost efficiency programs. It is also working on a robust pipeline of complex products including injectables, transdermals, NCE, biosimilars and vaccines which will materialize over the next 2–3 years. We expect steady earnings (8% EBITDA CAGR over FY22-24E) in near term.
Our FY23E and FY24E EPS broadly remains unchanged. Given recent correction in stock price and current valuations of 16x P/E on FY24E look attractive, we upgrade stock to ‘Buy’ from Accumulate with TP of Rs450 based on 20x FY24E earnings .