Execution challenge ahead for Zydus Life

Firm evolving into diversified health care platform: Brokerages

- RAM PRASAD SAHU

The stock of pharma major Zydus Lifesciences is trading close to its 52-week high and is up 10 per cent since its quarterly results were announced last month.

In addition to its performance in the June quarter, the gains are on expectations of a steady growth trajectory of the domestic business and upsides from the US portfolio.

Moreover, the slew of acquisitions by Zydus Lifesciences and its subsidiary, Zydus Wellness Ltd (ZWL), has expanded its presence across multiple categories and offer new growth opportunities.

The stock, which has gained about 16 per cent in FY26, is currently trading at 25 times its FY27 price-to-earnings estimates.

Since March this year, the company has made multiple acquisitions as well as specialty assets.

It acquired France-based Amplitude Surgical, which is a leading player in the global market for surgical technologies of lower limb orthopaedics, in March, for 257 million euros.

The acquisition of US-based Agenus' biologic facilities for $141 million in June this year has enabled it to foray into the global biologics contract development and manufacturing organisation segment.