Zydus Wellness, a health and nutrition company in India, is being praised by Motilal Oswal, which gave the stock a BUY rating and set a target price of INR 575.
Company Overview
The firm makes products like sugar‑free sweeteners (Sugar Free), glucose powders (Glucon‑D), skin‑care (Everyuth), functional foods (Nutralite), prickly‑heat powder (Nycil) and nutritional drinks (Complan). These products hold strong market positions.
Recent Acquisitions
It has bought Naturell, known for the high‑protein snack RiteBite Max Protein, and Comfort Click, which adds a vitamin‑mineral supplement line. These deals let Zydus tap into trends such as high‑protein snacks, preventive health and digital‑first nutrition.
Growth Drivers
- Rising demand for low‑sugar and high‑protein foods.
- Focus on preventive wellness and on‑the‑go nutrition.
- Ability to attract younger and higher‑income consumers.
Valuation and Target Price
Motilal Oswal values the Indian business at 27 times EV/EBITDA for FY28 and the international (Comfort Click) part at 15 times EV/EBITDA. This leads to an implied consolidated multiple of 22 times EV/EBITDA and 30 times P/E, resulting in a target price of INR 575.
Why It Matters for Investors
The company’s diverse portfolio matches global consumption trends, giving it room to grow its user base while many FMCG peers face stagnation. The BUY rating suggests potential upside for retail investors.
Remember, this is just an opinion, not a prediction. Do your own research before making any investment decisions.