Wellness is the new in-thing and wellness products are slowly but surely making steady inroads into our lives. These products, unlike medicines are not a cure for any ailment but should be viewed as health aiding or enhancing supplements.
Zydus Wellness is a company which exclusively makes wellness products only. Its product portfolio at present consists of EverYuth, Sugar Free and Nutralite. The company’s vision statement captures its essence by saying that they will create products that will nourish, nurture and energise our lives.
Already the products of the company are very popular, notable amongst them being Sugar Free which is a sugar substitute. Other products too are household names now.
We expect that with the exclusive nature of the product offering with which it operates, it has a great potential to grow as the demand for such wellness products increases in the future
The financials of the company reflect its potential.
| 2013 | 2012 | 2011 | CAGR% | |
| Sales (in Cr) | 388 | 331.45 | 336.37 | 7.40 |
| Profit (in Cr) | 99.3 | 68.59 | 59.48 | 29.21 |
| OPM% | 24.92 | 23.30 | 25.09 | |
| ROCE% | 35.93 | 39.27 | 58.43 | |
| ROE% | 38.59 | 36.70 | 41.92 | |
| Debt/Equity | N A | 0.013 | 0.010 | |
| Interest Coverage Ratio | 901.7 | 489.2 | 518.2 |
| 2013 | 2014 | 2015 | |
| PE | 23.83 | 20 | 17 |
CMP at the time of post was Rs.604.15
Growth in Quarter ended March 2013 was 28.21% in sales and 21.80% EBITDA giving the company strength to grow further. The EBITDA has grown by 25.60% for FY13 signalling expansion in core business activity and a steady continuation over long term is predictable. Currently the share price is trading at 30% discount to its peers.
