First Read: Zydus Lifesciences "Decent performance in Q4" (Sell) Tottala

研报英文原文证据摘录

First Read: Zydus Lifesciences "Decent performance in Q4" (Sell) Tottala

Global Research

20 May 2026ab

First Read

EquitiesZydus Lifesciences

Decent performance in Q4 India

Pharmaceuticals

12-month rating Sell

Steady quarter; challenging environment continues

Zydus reported a stable quarter, with c3% QoQ (in CC) growth in North America, likely 12m price target Rs800.00

driven by higher Mirabegron sales offsetting gRevlimid's sequential decline. India and

international businesses also performed well, a tad better than expectations. We believe

Price (19 May 2026) Rs1,018.95

contribution from new product pipeline to be notable from next fiscal and likely to aid in

compensating for Mirabegron sales post exclusivity in Sept 2027. However, competitive RIC: ZYDU.BO BBG: ZYDUSLIF IB

pressures in Mirabegron may rise, as a third generic player enters the market following Trading data and key metrics

settlement with Astellas, potentially intensifying pricing pressure in FY27.

52-wk range Rs1,047.90-860.55

Market cap. Rs1,031b/US$10.7b

Guidance of single-digit growth in NA; product pipeline and diversification

Shares o/s 1,012m (ORD)

Management guided for single-digit revenue growth in the North America business,

Free float 25%

despite a high FY26 base, supported by a new product pipeline. At consol level, the

Avg. daily volume ('000) 800

company expects high-teen growth, driven by continued outperformance in the India

market and incremental contribution from recent acquisitions, particularly in 1H. On Avg. daily value (m) Rs742.7

profitability, it targets c24% EBITDA margin in FY27 with R&D spends of c8% of Common s/h equity (03/26E) Rs275b

revenue. On the pipeline front, Zydus highlighted progress in innovative therapies, P/BV (03/26E) 3.7x