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Zydus Lifesciences Limited (ZYDUSLIFE) Fair Value & Analysis

Healthcare · IN · Market cap ₹1.1T

ZL Zydus Lifesciences Limited ZYDUSLIFE · NSE
Price₹1,108
Fair Value₹1,157
Upside+4.4%
Quality57/100
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Expensive Growth
Solidly profitable · 18.6% net margin
Low debt · negative free cash flow
0.09% dividend yield
Mixed vs. peers (7/13)
Moderate moat 64/100
Evidence: Medium Range ₹744.18 – ₹1,845 Share as image

Fair value as of: Jul 12, 2026

From 17 valuation models · updated 26 days ago

Fair value updated Jul 12, 2026, revised from ₹697.22 to ₹1,157 (+65.9%) since Jun 24, 2026. Share price −3.9% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (₹744.18 to ₹1,845) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹1,287 ₹319.36 Fair Value ₹1,157 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ₹319.36 – ₹1,287 · fair‑value band ₹744.18 – ₹1,845 · the ₹1,108 price screens below the ₹1,157 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Zydus Lifesciences Limited (ZYDUSLIFE) currently trades at ₹1,108, while our model-based Fair Value estimate is ₹1,157, implying the stock looks roughly 4.4% fairly valued today. We read business quality at 57/100 (solid quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Zydus Lifesciences Limited generated revenue of ₹271B at a net margin of 18.6%. Revenue grew 16.2% year over year. It earns a return on equity of 18.3%. Net debt stands at ₹111B. Fundamentals as of Jul 12, 2026

Our scenario range runs from ₹744.18 (bear case) to ₹1,845 (bull case); at ₹1,108, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 1% below its 52-week high and 33% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at 4%, ZYDUSLIFE screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹348.79 ₹469.20 ₹2,014 76
ROIC Compounder ₹465.15 ₹674.00 ₹948.71 72
Gordon GGM ₹106.68 ₹232.90 ₹391.87 70
All 17 models by family
DCF Models
Owner Earnings ₹420.86 ₹846.85 ₹1,661 31
Earnings-Based
Graham-Dodd ₹343.58 ₹1,795 ₹2,484 54
Lynch FV ₹492.33 ₹703.32 ₹914.32 50
PEG = 1.0 ₹492.33 ₹703.32 ₹914.32 46
EPV ₹402.48 ₹476.64 ₹542.56 59
Dividend Discount
Gordon GGM ₹106.68 ₹232.90 ₹391.87 70
DDM Multi-Stage ₹106.68 ₹190.79 ₹242.72 61
Multiples
P/E Multiple ₹757.89 ₹1,011 ₹1,263 63
P/S Multiple ₹510.31 ₹680.41 ₹850.51 58
P/B Multiple ₹611.53 ₹815.38 ₹1,019 55
EV/EBIT ₹765.39 ₹1,026 ₹1,287 53
EV/EBITDA ₹685.47 ₹919.88 ₹1,154 54
EV/Revenue ₹458.53 ₹662.65 ₹866.77 43
Asset-Based
NCAV (Graham) ₹135.90 ₹182.10 ₹271.79 50
Economic Profit
Residual Income ₹348.79 ₹469.20 ₹2,014 76
ROIC Compounder ₹465.15 ₹674.00 ₹948.71 72
Growth Earnings
Growth-Adj P/E ₹716.19 ₹1,023 ₹1,330 68

Widest divergence: Growth Earnings (₹1,023) versus Asset-Based (₹182.10). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹271B
Revenue growth (YoY) +16.2%
Net margin 18.6%
Return on equity 18.3%
Free cash flow −₹12.0B FY2026
P/E ratio 23.0
More key figures
Operating margin 18.5%
EPS (TTM) ₹50.06
Dividend yield 0.1%
EPS growth (YoY) +8.7%
Net debt ₹111B FY2026

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 47 · Market factors (momentum, volatility) 73

Profitability 58
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 10
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 21
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Zydus Lifesciences Limited engages in the research, development, production, marketing, distribution, and sale of pharmaceutical products in India, the United States, and internationally. It operates through two segments: Pharmaceuticals and Consumer Products.

Full company description

Zydus Lifesciences Limited engages in the research, development, production, marketing, distribution, and sale of pharmaceutical products in India, the United States, and internationally. It operates through two segments: Pharmaceuticals and Consumer Products. It offers active pharmaceutical ingredients, finished dosage formulations, generics, specialty, biosimilars, vaccines, novel products, consumer wellness and animal health products under the Everyuth, Nutralite, SugarFree, Complan, Glucon-D, and Nycil brands. The company also provides a pipeline of biological products in the areas of oncology, autoimmune disease, nephrology, inflammation, rheumatology, hepatology, and infectious illnesses, as well as in the therapeutic areas of pain management, neurology, metabolic disorder, and neurology. In addition, it engages in the investment, animal health and veterinary, pharmacy retail, and manpower supply and administration activities. Further, it develops and markets products for orthopaedic surgery, including pathologies affecting the hip and knee. The company was formerly known as Cadila Healthcare Limited and changed its name to Zydus Lifesciences Limited in February 2022. Zydus Lifesciences Limited was founded in 1952 and is headquartered in Ahmedabad, India. Zydus Lifesciences Limited is a subsidiary of Zydus Family Trust.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Zydus Lifesciences Limited reported revenue of ₹271B in FY2026 versus ₹151B in FY2022, a compound +15.8%/yr. Reported net income was ₹50.4B in FY2026, compounding +2.9%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹271B
Latest YoY
+16.8%
Avg. growth/yr (3Y)
+16.3%
Avg. growth/yr (5Y)
+13.5%
Avg. growth/yr (22Y)
+15.2%
Revenue +15.8%/yr
FY22 ₹151B
FY23 ₹172B
FY24 ₹195B
FY25 ₹232B
FY26 ₹271B
Net income +2.9%/yr
FY22 ₹44.9B
FY23 ₹19.6B
FY24 ₹38.6B
FY25 ₹45.3B
FY26 ₹50.4B

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Cite: Fair Value Calculator (2026). "Zydus Lifesciences Limited Fair Value". https://www.fairvalue-calculator.com/stock/ZYDUSLIFE

Peer Group

Drug Manufacturers - Specialty & Generic · 625 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Above median
Fair Value upside +4% · Above median
Return on equity (TTM) 18% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 18% · Top 25%
Revenue growth 16% · Top 25%
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.12× · Higher than median

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 23.0× · Pricier than median
P/B 4.23× · Pricier than 75% of peers
P/S (TTM) 4.23× · Pricier than 75% of peers
EV/EBITDA 16.1× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 39 · sector 9
FUTURE 81 · sector 20
PAST 73 · sector 23
HEALTH 94 · sector 97
DIVIDEND 2 · sector 35

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹7,316 ₹1,943 -73%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%
Aurobindo Pharma Limited AUROPHARMA ₹1,548 ₹1,340 -13%

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Frequently asked questions

Is Zydus Lifesciences Limited (ZYDUSLIFE) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ₹1,157 versus a price of ₹1,108, about +4% (fairly valued).
What is the fair value of ZYDUSLIFE?
Our model-based fair value for Zydus Lifesciences Limited is ₹1,157 (as of Jul 12, 2026), built from audited fundamentals. The current price is ₹1,108.
What is the quality score of ZYDUSLIFE?
Zydus Lifesciences Limited has a Quality Score of 57/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Zydus Lifesciences Limited (ZYDUSLIFE)?
Zydus Lifesciences Limited reported trailing-twelve-month revenue of about ₹271B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of ZYDUSLIFE?
The net profit margin of Zydus Lifesciences Limited is about 18.6%, meaning it keeps roughly 18.6% of revenue as net income. Based on the latest reported figures.
Does Zydus Lifesciences Limited pay a dividend?
Zydus Lifesciences Limited currently shows a dividend yield of about 0.09% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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