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 (95.8%), Prickly heat powder (35.1%) & Glucose powder (59.9%) categories • The company has more than 850 distributors with direct reach of 6 lakh retail outlets. Its high gross margins at ~55% give it leeway to spend ~13% of sales on advertisement to support new products.
Outlook
We maintain our BUY rating on the stock. We value the stock at Rs 2000 on ascribing 26x FY25 earnings multiple.
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