Zydus Wellness share price: Sharekhan maintains Buy rating, target price of Rs 2505
Sharekhan says that Zydus Wellness revenue grew by 24.2% yoy to Rs 606 cr in Q4FY2021, better than our expectation of Rs 537.5 cr. Except for Nutralite and Glucon D, all other brands registered high double-digit revenue growth during the quarter. Late start to season resulted in high single digit growth for Glucon D, while Nutralite sales (largely an institutional business) saw sequential improvement in sales, which reached pre-COVID levels in Q4. Despite firm palm oil prices, benign dairy prices and better revenue mix led to 71 bps improvements in the gross margins
Sharekhan said that new products (NPD) are gaining good traction and now contribute around 3.5% of revenues as against 1% contribution two years back: Reuters