Zydus Lifesciences Limited

ZYDUSLIFE.NS

Drug Manufacturers - Specialty & Generic · Healthcare

Price

₹1113.80

-12.50 (-1.11%)

Market Cap

₹1.11T

Exchange

National Stock Exchange of India

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−1.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.02B (2022) → 1.01B (2026)

Zydus Lifesciences is an Indian pharmaceutical company that makes and sells medicines, including both generic drugs (copies of existing medicines sold at lower prices) and branded specialty drugs. Its products cover areas like heart disease, diabetes, pain relief, and infectious diseases, sold to hospitals, pharmacies, and patients. The company is one of India's largest drugmakers and is known for developing India's first homegrown COVID-19 vaccine, ZyCoV-D.

Zydus earns money by selling finished medicines, active pharmaceutical ingredients (the chemical building blocks of drugs), and wellness products. It operates across India, the United States, Europe, and emerging markets, with the US being its largest export destination. Its competitive edge comes from a strong pipeline of complex generics and biosimilars, along with low-cost manufacturing in India. The key growth driver is expanding its portfolio of difficult-to-make drugs in the US market, though pricing pressure on US generics and regulatory scrutiny of Indian manufacturing facilities remain ongoing risks.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+16.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+8.7% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$22.7B/ year

↑ Rising (+17% vs prior year)

8.4% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

75.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$89.9B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Zydus Lifesciences Limited is a rare growth stock that's already generating positive cash flow while growing at 16%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

50.9%

Healthy — 50.9% gross margin

Operating Margin

18.5%

Healthy — 18.5% operating margin

ROCE

3.6%

Weak — 3.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+16.8%

Fast-growing sales (16.8% YoY)

EPS YoY

+11.4%

Earnings growing (11.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

19%

Weak — only 19% of profit becomes cash

FCF Margin

0.3%

Thin free cash flow (0.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.44

Conservative — low debt load (0.44)

Interest Cover

17.71x

Comfortably covers interest (17.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

22.2x

Growth-priced — P/E 22.2

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

-4.2

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

0.99%

Small dividend — 0.99% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+61.5%

Dividend growing fast (61.5% YoY)

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