Zydus Lifesciences shares soar on Q2 results; Should you buy, hold or sell Zydus stock-

Zydus Lifesciences shares soar on Q2 results; Should you buy, hold or sell Zydus stock?

Zydus Lifesciences’ stock price soared 4.80% to Rs 626 a day after the company posted profit for the second quarter of FY24 at Rs 800.70 crore, up 53.2% in comparison to Rs 522.50 crore during the corresponding quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 4368.80 crore, up 9.1% as against Rs 4,005.50 crore during the second quarter of FY23. The company’s EBITDA stood at Rs 1146.10 crore, up 41% on-year. Zydus Lifesciences recorded its R&D investments for the quarter at Rs 322.50 crore, which is 7.4% of the overall revenues.Should you buy, sell or hold Zydus shares?Prabhudas Lilladher: Accumulate – Target Price: Rs 670

“Zydus Lifesciences Q2 EBITDA of Rs 1060 crore (up 55% YoY) was largely in line with our estimate aided by healthy margins despite negligible gRevlimid sales. We believe that the company’s steady domestic franchise, strong balance sheet and potential new launches in the US will help negate pricing pressure and likely competition in some key products like gAsacol. Moreover, Zydus Lifesciences is also working on a robust pipeline of complex products including injectables, transdermals, NCE, biosimilars and vaccines which are expected to materialize over next 2–3 years. Our FY24/25E EPS stands increased by ~7%. We maintain our ‘Accumulate’ rating with revised Target Price of Rs 670 (Rs 650 earlier), valuing at 23x (unchanged) Sept 2025E earnings plus Rs 25/share for gRevlimid.”

JM Financial: Buy – Target Price: 270

“Zydus Lifesciences reaffirmed its double-digit growth guidance for the US in FY24. The management alluded to the annual increase in gRevlimid share, which, along with new launches, will continue to drive US growth. India’s growth was weak due to delayed acute season but we expect it to grow in line with or higher than IPM growth. We believe US launches, domestic growth and margin sustenance place Zydus Lifesciences on a sustainable growth path. We maintain ‘Buy’ with a Sep’24 Target Price of Rs 720 (including gRevlimid NPV of Rs 30).”

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