Zydus Wellness Has Attractive Risk-Reward Profile, Says Motilal Oswal On 'Buy' Initiation — Check Details

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Motilal Oswal Report

Motilal Oswal has initiated coverage on Zydus Wellness with a Buy rating and a target price of Rs 575, citing strong growth prospects and one of the best risk-reward profiles in the sub-Rs 15,000 crore market-cap consumer universe.

The brokerage highlights that Zydus has successfully stabilized its large acquisitions and scaled its India business to Rs 25,000 crore, supported by a diversified portfolio across core and emerging categories. Recent acquisitions—Naturell (RiteBite Max Protein) and Comfort Click (UK-based VMS portfolio)—position Zydus to capture rising demand from health-conscious and affluent consumers, as well as global wellness trends.

Motilal Oswal expects Zydus to deliver ~10% organic revenue CAGR and ~14% Ebitda CAGR over FY25–28E, with margins expanding to 15–16% (vs management’s target of 17%).

Comfort Click is projected to grow at ~20% CAGR, driving consolidated revenue CAGR of ~30% and Ebitda CAGR of ~35% during the same period.

Key downside risks include high dependence on seasonality, input cost volatility, underperformance in the health-food drink category, and rising competitive intensity.

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