Zydus Wellness Q3 Results Review - Decent Revenue Print, Margins Drag: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Zydus Wellness Ltd. reported a decent (though below potential) top-line. Flat volume growth despite ~7% price hike and higher distribution expansion benefit (faster than peers), has been underwhelming. Positives are: continued market share gains in the core portfolio (GluconD, Sugar Free, Nycil and Everyuth),moderation in market share loss in Complan (category growth constrained in last two years). Input cost pressure peaks out (except milk); gross margin improves sequentially. With double-digit growth potential across its most brands, distribution expansion benefits and developments in focused international geographies are key legs of growth in the medium term. We like the new product development strategy aimed to address some key challenges. We appreciate the research-backed focus with an intent to create problem solution products. Zydus Wellness also expanded its direct reach which will allow it to participate in larger categories. That said, execution improvement and macro tailwinds in tandem, appear a necessity for performance..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Zydus Wellness Q3 Results Review - Decent Revenue Print, Margins Drag: ICICI Securities

Input cost pressure peaks out (except milk); gross margin improves sequentially.

Choose a plan