Zydus Lifesciences growth aided by acquisitions, but execution risks loom

Zydus Lifesciences trades near 52-week highs on strong growth and acquisitions but analysts caution that rapid expansion and diversification may pose execution challenges

The stock of pharma major Zydus Lifesciences is trading close to its 52-week high and is up 10 per cent since its quarterly results were announced last month.

 

In addition to the performance in the June quarter, the gains are on expectations of a steady growth trajectory of the domestic business and upsides from the US portfolio.

 

Moreover, the slew of acquisitions by Zydus Lifesciences and its subsidiary, Zydus Wellness (ZWL) has expanded its presence across multiple categories and offers new growth opportunities.

 

The stock, which has gained about 16 per cent in FY26, is currently trading at 25 times