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Anand Rathi on Zydus Wellness: Consumer goods company Zydus Wellness shares were buzzing in trade on Wednesday, September 3, with the scrip rising up to 4.10 per cent to hit a fresh 52-week high of ₹2,346.45 per share.
At 12:20 PM, Zydus Wellness share price was trading 3.02 per cent higher at ₹2,321.85 per share. In comparison, BSE Sensex was trading 0.16 per cent higher at 80,282.55 levels.
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Why did Zydus Wellness share price hit a 52-week high today?
Zydus Wellness shares hit a fresh 52-week high after domestic brokerage firm Anand Rathi increased the stock’s target price to ₹2,995, from ₹2,570 earlier, which implies a little over 34 per cent upside. The brokerage, however, maintained its ‘Buy’ rating.
“We retain a ‘Buy’ with a higher 12-month ₹2,995 TP, 30x September’27e EPS (₹2,570 earlier, 33x FY27e EPS) as the acquisition catapults the company into the >₹5000 crore revenue orbit with a focussed play on health & wellness, which barely a few global companies can boast of,” said Ajay Thakur, research analyst at Anand Rathi, in a note dated September 2.
Meanwhile, here are the key factors driving the Zydus Wellness target price upgrade:
Strong growth track record
Comfort Click has delivered a revenue CAGR of over 57 per cent in the past two and five years. In FY25, the digital-first healthcare brand – focused on vitamins, minerals and supplements (VMS) – reported revenues of £134 million (₹1,600 crore) and Ebitda of £21 million (₹250 crore), reflecting a healthy 16 per cent margin. Its portfolio is led by three brands, WeightWorld (plant-based supplements, vitamins, collagen, probiotics, sports nutrition), Maxmedix (paediatric VMS gummies) and Animigo (natural pet health supplements), which strengthen Zydus’ nutrition and wellness range.
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Boost to international business
Post-acquisition, Zydus’ revenue is projected to rise to over ₹5,000 crore in FY27 (from ₹2,700 crore in FY25), with Ebitda expected to exceed ₹900 crore. The contribution of international markets will climb to around 40 per cent of total revenue (versus ~3 per cent currently). The deal also marks Zydus’ entry into the fast-growing VMS segment, while offering scope for cross-selling synergies. Importantly, Comfort Click’s management will continue to run operations, with performance-linked incentives.
Valuation
The stock trades at 34x/24x/21x FY26/27/28E EPS of ₹65.7/₹93.6/₹106.1.
That apart, key risks include execution challenges in product launches or acquisitions, intensifying price-based competition, forex volatility, and geopolitical uncertainties in international markets.
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