Zydus Lifesciences Limited (ZYDUSLIFE.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+57.8%

₹1,958.49

vs ₹1,241.50 price

Levered DCF

₹1,803.71

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

—

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	17.39×	19.51×	26.37×	25.4×	15.91×	20.5×	23.26×	19.06×
P/B	3.23×	3.69×	5.1×	2.85×	2.1×	3.47×	2.64×	3.39×
P/S	3.23×	3.8×	5.18×	2.9×	2.36×	3.13×	1.92×	2.68×
EV / EBITDA	11.53×	13.19×	19.15×	14.16×	12.22×	14.18×	12.34×	14.28×
Gross margin	51.7%	71.9%	67.3%	62.5%	62.4%	65.7%	64.4%	63.1%
Operating margin	21.3%	41.3%	38.9%	33.4%	33.9%	36.2%	33.4%	34.4%
Net margin	18.6%	19.5%	19.7%	11.4%	29.7%	14.8%	8.3%	14.0%
Current ratio	1.27×	1.89×	2.14×	1.81×	1.54×	1.11×	1.05×	1.16×
Debt / equity	0.46×	0.13×	0.04×	0.07×	0.25×	0.35×	0.77×	0.76×
Interest coverage	13.18×	96.71×	154.38×	44.35×	42.78×	31.75×	14.33×	23.1×
Dividend yield	1.3%	0.3%	0.6%	0.5%	1.0%	0.0%	3.1%	1.0%
Payout ratio	22.0%	6.7%	16.1%	13.6%	8.3%	0.1%	72.8%	19.4%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	18.6%	18.9%	19.5%	11.2%	26.4%	16.4%	11.3%	17.8%
Return on invested capital	9.7%	23.5%	24.6%	21.0%	17.9%	24.0%	18.6%	17.6%
Return on assets	9.6%	12.2%	13.2%	7.6%	16.1%	8.9%	5.0%	7.9%
Free cash flow yield	-1.4%	5.7%	2.3%	3.3%	2.5%	5.4%	5.9%	5.2%
Earnings yield	5.7%	5.1%	3.8%	3.9%	12.6%	4.7%	4.3%	5.2%
Enterprise value	₹987.4B	₹906.9B	₹1T	₹506.3B	₹392.4B	₹490.8B	₹345.3B	₹427.2B
Net debt / EBITDA	1.29×	0.35×	0.07×	0.2×	1.11×	1.14×	2.56×	2.5×
Cash conversion cycle (days)	150	163	178	171	186	163	151	168