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Current Market Price-: 2091 Rs

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Zydus wellness is a subsidiary of Cadila Healthcare Limited having a broad spectrum of various different brands under its portfolio which includes Sugarlite, Complan, Sugar Free, Glucon-D, Everyuth, Nycil and Nutralite etc.

With the launch of India’s first zero calorie replacement of sugar, called Sugar Free, in 1988, Zydus Wellness began its journey as is India’s leading consumer Wellness Company. Since then, we have grown into a larger business, spanning the entire wellness spectrum with seven power brands. Headquartered in Ahmedabad, Zydus Wellness operates as an integrated consumer Group with business encompassing the entire value chain in the development, production, marketing and distribution of health and wellness products. 

Zydus Wellness Ltd is a subsidiary of Cadila Healthcare Ltd.Zydus Wellness Ltd was incorporated on November 1, 1994 as a public limited company with the name Carnation Health Foods Ltd. 

During the year 2015-16 the company rolled out distribution expansion program named ‘EnReach’ during the year, which has resulted into a significant growth in the direct coverage.

Zydus Wellness entered new markets like Saudi Arabia, Qatar, Oman and Myanmar. Zydus Wellness 

During the year 2019, the company had entered into a Share Purchase Agreement jointly with Cadila Healthcare Limited to acquire 100% shareholding of Heinz India Private Limited, (Heinz).

Various different brands under Zydus Wellness’s Portfolio


The company set up a unit to manufacture Low fat, Zero cholesterol Margarine as a Butter substitute and Low fat, Zero Cholesterol Cheese and casienate and milk fat.. During the year 2006-07, the company launched a variant of Nutralite in retail under the brand ‘Nutralite Premium’. 

In this Nutralite segment, a new variant called Nutralite Yummy’ was launched in the retail segment in North India, positioned on the platform of Great Taste at Great Value.

Keeping in line with the idea of promising health, Zydus wellness offers Nutralite Table Spread, Mayonnaise & Choco Spread. Nutralite is a premium spread which is cholesterol free and contains Omega 3. Its also has no Trans fat and Rich in Vitamins. So while Nutralite tastes like butter, all of these advantages makes it a healthier alternative to butter.

The Company has strengthened its margarine product portfolio by introducing Nutralite with Omega 3 benefits.

Nutralite is low in cholesterol and does not consist of hydrogenated fats. The table spread is armed with cholesterol fighters like PUFA (poly unsaturated fatty acids) and MUFA (mono unsaturated fatty acids). It is a blend of taste and health, helping you attain your fitness goals.

What are the benefits of Omega 3?

Omega-3 fatty acids are critical for normal brain function and development throughout a kid’s life because they are important in the building of healthy cell membranes. They are also related to visual health, with results indicating that these healthy fats may be incredibly important in terms of good vision and eye health.

Sugar Free

Zydus Wellness launched a power brand ‘Natura Diet Sugar’ to bring convenience to the consumer. They also launched Sugar Free Natura Flavored sachets in Lemon Mint and Ginger Masala flavours to enhance the consumer experience and offer a wider choice to the customers. In September 2010, the company extended their niche product basket with the launch of Sugar Free Mints. Both the variants of Sugar Free, the aspartame based Sugar Free Gold and sucralose based Sugar Free Natura, continue to lead in their respective segments.

Today Sugar Free is a name synonymous to the sugar substitute category, is the category leader in india with 94% Market Share.

Sugar Free brand Portfolio includes 

Sugar Free Green

100% Natural* & 0% Sugar, Sugar Free Green is made from Stevia leaves. It’s the perfect natural sweetener for beverages & desserts that you can share with your family including kids

Sugar Free Natura

Made using Sucralose which is a derivative of Sugar. Sucralose tastes like Sugar, but doesn’t contain the same amount of calories. Thus, it allows you to enjoy the sweet flavor of sugar without having to worry about gaining excess calories.

Sugar Free Gold

Your healthier sugar alternative is made from Aspartame – a protein derivative. Sugar Free Gold can be added to tea, coffee, milk, cornflakes, nimbupani, fruit juices etc. So now you can enjoy sweetness & also keep a tab on your calorie intake. It’s ideal for health conscious, overweight & diabetics.


During the year 2014 , the Company introduced Stevia, a new variant of Sugar Free in limited markets

Stevia -: It is 100% natural sugar, made with a blend of Sugar and Stevia, So, it has the sweetness of sugar, but with 50% less calories.

Zydus Wellness presented Sugarlite. A natural blend of cane sugar and stevia which delivers 50% less calories than ordinary sugar.

Sugarlite needs to be used only half as much a regular sugar, to deliver the same degree of sweetness and hence it delivers only 50% of the calories that come from ordinary sugar. All this without compromising on the taste.

Sugarlite can be used to make all kinds of desserts, beverages or any other food that is made using ordinary sugar, making it an ideal replacement.


In the Facial Mask category, EverYuth launched 3 in 1 Neem Face Pack in FY 2014-15. In the Peel Off segment the Company drove the category single-handedly and expanded the portfolio through the launch of a new ‘Fairness Peel Off’ with Intelligent Target Delivery Whitening Technology, a first in India. The Company has launched a new and innovative ‘Tulsi Turmeric Face Wash’ at an attractive consumer price appealing to young women seeking high performance products at affordable prices.

Everyuth re-launched its Face Wash range with fresh, new and contemporary looking packaging. Today, Everyuth Naturals has a strong leadership presence in advanced skincare segments like soap-free face wash, face masks, skin exfoliators amongst others. It also includes specialty dermatologically tested skincare solutions for sun protection, pigmentation and acne


Glucon-D is India’s No. 1 Glucose powder brand. Launched in 1933, it boasts of a rich heritage of over 85 years. Millions of Indian households have trusted Glucon-D to get Instant Energy when they get tired.

Along with Glucose, Glucon-D Regular variant is a rich source of Vitamin D and Flavour variants are a rich source of Vitamin C. Hence, Glucon-D not only provides Instant Energy but also supports Immunity. Apart from Plain Variant, Glucon-D is also available in popular flavours of Tangy Orange, Nimbu Pani & Mango Punch.


 It is the # 1 brand in prickly heat & cooling powder category.

Nycil has delivered its promise of ‘Instant Germ Kill’ for over the years. Recently, the brand extended this equity and launched Nycil Hand Sanitizers. Its unique formulation is enriched with neem and Aloe Vera and Kills 99.9% Germs Instantly!

Today Nycil talcum powder has 7 variants in its portfolio that gives you a refreshing & fresh feel after application.

Nycil Cool Herbal, Nycil Cool Gulabjal, Nycil Cool Sandal, Nycil Cool Aloe, Nycil Cool Lime, Nycil Cool Classic, Nycil Classic.

Nycil Hand Sanitizers are available in 2 variants – Herbal and Germ Expert. They contain ~ 70% alcohol and are enriched with neem and aloe vera


Complan is a 75-year-old brand which has been present in Indian households for more than 5 decades. Complan’s best ever formula has ‘100% first class protein’ and ‘34 vital nutrients.

Complan Nutri-Gro

Scientifically formulated for toddlers(2-6years), Complan NutriGro with 11 Pro-Immunity nutrients builds immunity to ensure all round growth*.

New Product Launches

Parent History 

Cadila was founded in 1952 by Ramanbhai Patel (1925–2001), formerly a lecturer in the L.M. College of Pharmacy, and his business partner Indravadan Modi. It evolved over the next four decades into an established pharmaceutical company.

From nine pharmaceutical production operations in India as well as a Zydus Cadila develops and manufactures a large range of pharmaceuticals as well as diagnostics, herbal products, skin care products and other OTC products. Starting from late 2015, having concluded a voluntary license agreement with Gilead, the company also produces the generics for hepatitis C treatment (i.e. sofosbuvir, distributed under the brand name SoviHep)

Heinz India acquisition

The Company along with its wholly owned entity Zydus Wellness – Sikkim, paid a consideration amount of Rs 4,667.36 Crores (which includes payment towards cash and bank balance of Rs 125 Crores in Heinz and acquired 100% shareholding of Heinz.During the year 2019, the Company has issued and allotted 1,85,92,055 Equity Shares of face value of Rs 10/- each at a price of Rs 1,385/- (including a premium of Rs 1,375/-) per equity share to Threpsi Care LLP, Pioneer Investments Fund, Cadila Healthcare Limited and Zydus Family Trust. 

What did Zydus get?

Heinz India’s business comprises the brands Complan, Glucon-D, Nycil and Sampriti Ghee, two large manufacturing facilities in Aligarh and Sitarganj and teams devoted to operations, research, sales, marketing and support.  Heinz India also has a strong distribution network of over 800 distributors and more than 20,000 wholesalers covering 29 states. For the four brands, Heinz India recorded revenues of about INR 1150 crore and EBIDTA of about INR 225 crore for the 12 months ending 30th June 2018.  Following this acquisition, Zydus Wellness will have consolidated revenues of about INR 1700 crore. 

Market Share

Glucon-D has maintained its number one position with a market share of 58.4% of the glucose powder category. Complan has market share of 5.5% in our MFD category. Nycil has maintained its number one position with a market share of 35.8% in Prickly Heat Powder category, which is an increase of 225 basis points over the same period last year. Everyuth Scrub has maintained its number one position with a market share of 35.8% in the facial scrub category which is an increase of 174 basis points over the same period last year. Everyuth Peel Off has maintained its number one position with a market share of 77.9% in the Peel Off category. Everyuth brand is now at number five position with a market share of 6.1% in the overall facial cleaning segment. 


For Fy 2020

  • Total income from operations has increased by 17.2% year-on-year to Rs. 4,878 million.
  • EBITDA was up by 20.9% year-on-year to Rs. 1046 million.
  • PBT before exceptional item was up by 7.3% to Rs. 643 million. 
  • Net profit was up by 10.9% to Rs. 691 million.

On the annual consolidated financial highlights

  • Adjusted total income from operations increased by 112.5% year-on-year to Rs. 17,668 million during the year.
  • Adjusted EBITDA was up by 85.5% year-on-year to Rs. 3,211 million. EBITDA margin, there is a percentage to total income from operations stood at 18.2%.
  • Adjusted PBT before exceptional items was down by 2.3% to Rs. 1,655 million.
  • Adjusted net profit was down by 10% to Rs. 1,417 million.
  • Consolidated cash position stood at Rs. 1,928.3 million including our investments in liquid funds.
  • Consolidated CAPEX excluding goodwill for the year was Rs. 323.7 million

For Q1FY21

  • Total income from operation stood at Rs. 5,374 million.
  • EBITDA was up by 0.3% year-on-year to Rs. 1,223 million.
  • PBT was up by 4.1% year-on-year to Rs. 831 million.
  • Net profit stood at Rs. 892 million, up by 10.9% year-on-year inspite of decline in sales mainly due to better control over costs. 

For Q4Fy21

  • Zydus Wellness ended quarter with high double-digit net sales growth of 23.9% on year-on-year basis. The year gone by was very eventful and challenging with COVID induced setbacks impacting sales of key brands like Glucon-D, Nycil, Nutralite revenues. Despite the same, company has managed to achieve satisfactory performance during the year and achieved a growth of 6.9% on net sales and 5.7% on total operating income respectively over the previous financial year. 
  • The company witnessed strong double digit growth in Sugar Free & Nycil. 
  • Further, discretionary brand Everyuth also saw strong growth with an increase in out of home activity. 
  • HORECA dominant brand like Nutralite saw a sharp recovery with sales reaching at pre-Covid levels in Q4. 
  • Zydus Wellness maintained its leadership position in five of its brands – Glucon-D, Sugar Free, Ever-Yuth Scrub, Peel off Face Mask & Nycil. Glucon-D & Complan command market share of 58.4% & 5.5% in glucose powder & MFD category, respectively. 
  • Gross margins witnessed a 70 bps improvement given the company was holding low cost SMP (Skimmed Milk Powder) inventory. 
  • Operating profit increased 38.6% to  145.4 crore. 
  • Operating margins improved 250 bps to 24%. Interest cost declined 75.5% in Q4 with repayment of more than  900 crore debt after raising funds through QIP leading to PAT growth of 91.8% to  133 crore.
  • In the last one year, the company focused on new product with the launch of 11 new products. 
  • It is also supporting new products like Nutralite Doodh Shakti butter spread & Nutralite Choco spread through new ad campaigns. 
  • ZWL launched ‘Soothing body mist’ under Nycil brand in Q4. 
  • On the distribution expansion side, the company doubled its direct reach to 5.5 lakh outlets and is also driving outreach programmes to increase penetration in hinterland. 
  • It has a presence in more than 800 towns now. E-commerce channel sales increased 3x in FY21.
  • International business has seen a growth of more than 200% during the year. The company has entered new countries like Nigeria and Taiwan. International business accounts for more than 3% of the consolidated. 

Fund Raising

Zydus Wellness its board has approved plans to raise up to Rs 1,099.98 crore through a combination of issuance of shares to its promoter Zydus Family Trust on a preferential basis and other options. The board has accorded approval to raise Rs 349.98 crore through issuance of 21,30,000 shares at a price of Rs 1,643.10 per share. 

Further, the board has also approved raising funds up to Rs 750 crore by issuing securities of the company, including equity shares (or equivalent instruments including but not limited to compulsorily convertible debentures, non-convertible debentures with warrants) through a private placement or qualified institutions placements (QIP) to qualified institutional buyers (QIBs) or a combination thereof.

Further it is assumed that the company would utilise funds to repay high cost debt of | 1500 crore that was raised at the time of acquisition of the Heinz business. With equity infusion of | 1100 crore, existing cash of | 200 crore, FY21 earnings, ZWL would be able to repay almost entire debt by March 2021. This would result in saving of 140 crore interest cost. Assuming equity infusion at current price of | 1650/share (given promoters have infused | 350 crore at | 1643/share), the equity dilution would be more than 10%. The mere saving of interest cost would increase FY22 EPS estimate by 21%.

Going Forward

In terms of new Product Launches

For Nutralite, company will definitely be entering the more mass segments, but it definitely does have a better value proposition and have very good control on the whole value chain of manufacturing and sourcing. As a result brand will be a little different. 

Sugar free is one area where company is trying to see more niches like Sugarlite, Sugar Free Cream. So that will continue. 

Everyuth will remain in a similar way in terms of launching new types of use cases for product. But in some there would be more Masiness to it, in Complan, company is diversifying, where company is looking at eight groups, where Zydus Wellness wants to bring proper solution for different age groups which it has done in the first wave now and will look to enhance that. So, that is how the whole strategy the brand will follow. 


With the reduction of debt, the company would see strong earnings growth in FY20-22E. It is expected to deliver more than 30% CAGR adjusted earnings growth from FY20-22E. 

Though return ration are like ROCE are currently in single digits , it could be seen that there exits a strong upside potential for the company. Additionally promoters infusing funds at current market is a very strong sign of upcoming growth for the company. Also company is on the verge of becoming completely debt free with significant reduction in debt this year. With 3 year sales growth of over 54% , compounded profit growth of 24% and Operating profit margin in range of 18-24% Zydus Wellness is well suited to give at least 35% returns over next 1-2 year period.

Zydus Wellness was previously suggested on 8th Sept 2020 at the price of 1596 where we had specifically mentioned the potential upside possible for this stock to be 35% and since then the stock is already up over 35%.

Please note that returns over next period is based on our estimate which may or may not be achieved . Therefore users are requested to do their own research before taking any decision. Darkhorsestocks or any of its members would not be responsible for any loss.

11 thoughts on “ZYDUS WELLNESS

  1. Tks for the fine analysis of the company. No doubt market is trading at very high PE. It may crash to some extent at any point of time

  2. It’s a really strong stock.. thanks for posting again .. and if long term is concern. No doubt it is going on much higher side..

  3. I badly need you to have ads in this blog
    So It will be profitable to you.
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    1. Thank you for your concerns. Running this site for free is definitely difficult but whats more important is that we want to have best user experience and showing ads will just kill the mood.

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