Q4 FY24 Earnings Highlights
Zydus Wellness posted a strong operational and financial performance in Q4 FY24, driven by steady consumer demand and improved operating leverage. The company reported a net profit of ₹172 crore, marking a 14.7% increase over ₹150 crore in Q4 FY23. Revenue surged 16.7% to ₹913 crore, up from ₹782.6 crore during the same period last year, reflecting healthy growth across core product categories.
EBITDA stood at ₹190 crore, registering a 17% year-on-year increase, while EBITDA margin remained stable at 20.8% compared to 20.73% a year ago. This consistency highlights the company’s ability to manage input costs while maintaining profitability.
Also Read: Divi’s Labs Q4 FY24 profit jumps 23%, margin expands to 34.3
In a strategic move to enhance stock liquidity, the board has approved a stock split in the ratio of 1:5. This means each existing share will be divided into five shares of lower face value, making the stock more accessible to retail investors. The announcement also signals management’s confidence in future growth and shareholder engagement.
Company Snapshot
Zydus Wellness shares were trading at ₹1,834 as of May 19, reflecting a market capitalization of ₹11,669 crore. The stock commands a P/E ratio of 36.5 against the industry average of 31.2, suggesting investor confidence in its premium wellness offerings. The company boasts an EPS of ₹51.1, ROCE of 5.33%, and ROE of 5.32%, with a low debt-to-equity ratio of just 0.03.
Sales over the last three years grew at a CAGR of 7.64%, and profits grew at 3.61%. Despite moderate profitability, the company’s free cash flow of ₹220 crore in FY24 and a robust Altman Z score of 5.16 underline financial prudence and stability.
Shareholding and Analyst Sentiment
Promoters increased their stake to 69.6% in the recent quarter, indicating strong promoter confidence. DIIs and FIIs hold 19.76% and 3.29% respectively, while retail participation stands at 7.3%. According to analyst data, 50% recommend a ‘Buy’ and 33% rate it ‘Outperform’, suggesting growing optimism about long-term performance.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. FinanceXaditya is not a SEBI-registered advisor. Always consult with a certified financial advisor before making any investment decisions.
Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
