Zydus Wellness (ZYDUSWELL)

FairStock Score: 44/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Zydus Wellness as a packaged-foods business trading at ₹510.30 with a ₹16,236 Cr market cap. The apparent attraction is scale and distribution, but the numbers demand caution. A P/E of 86.20 and P/B of 2.79 against book value of ₹183.12 means I am paying a premium for earnings that are not there: ROE is only 0.78%, ROCE 6.16%, and the latest quarter shows sales of ₹965 Cr but a net loss of ₹40 Cr. Sales growth of 79.23% is eye-catching, but profit growth is -21.43%, so top-line expansion is not converting into owner earnings. The five-year revenue CAGR of 8.92% is modest, not hypergrowth. Debt/equity of 0.55 is not alarming, but with weak returns and a negative quarter, it is a risk. Free cash flow of ₹173 Cr is a positive, and promoter holding of 69.64% aligns interests. Dividend yield of 0.24% is negligible. The PEG of 0.47 looks cheap only if one trusts a growth estimate that the current profit trend does not support. Piotroski F-Score 4/9 and FairStock Score 44/100 confirm a mixed picture. Graham would ask for a margin of safety; at 86 times earnings and near the upper half of the 52-week range (₹367.55–₹611.85), I see little. Buffett would wait for ROE and ROCE to recover and profits to turn positive before calling this a moat. For now, I’d watch, not buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer