Zydus Wellness Shares Extend Gains, But SEBI Analyst Sees Growth With Caution

The analyst rated the stock 7.3/10, noting steady sales growth but warning that volatile margins and profits make long-term visibility uncertain.

Zydus Wellness extended its gains on Tuesday, rising nearly 2% after announcing its first overseas acquisition, UK-based Comfort Click, in a 239 million pounds deal. 

Operating in Europe’s £11 billion vitamins, minerals and supplements (VMS) market, Comfort Click will be cash EPS accretive from the outset, Zydus said. 

The deal brings a strong e-commerce and direct-to-consumer model, expands access to the UK and US for Zydus’ existing products, and creates scope to launch Comfort Click’s range in India. 

Fundamental View

SEBI-registered analyst Finkhoz, who rated the stock 7.3/10, stated that Zydus Wellness has demonstrated steady sales growth, increasing from ₹696 crore in June 2022 to an estimated ₹861 crore in June 2025. 

However, profitability remains uneven. Operating margins have fluctuated between highs of 21% and lows of 3–4%, while net profit decreased from ₹137 crore in June 2022 to just ₹6 crore in December 2023, before rebounding to an estimated ₹128 crore in June 2025. 

Earnings per share have also been erratic, ranging from ₹21.5 in June 2022 to near ₹1 in December 2024, before recovering above ₹20 in June 2025.

Technical Picture

The stock jumped 9.8% in the previous session, closing at ₹2,218. Finkhoz noted strong support around ₹1,900–1,950 near the 50-day exponential moving average (EMA), while resistance lies at ₹2,395, which has previously capped rallies. 

A sustained move above ₹2,400, accompanied by increased volume, could open the door to targets between ₹2,650 and ₹2,800.

Short-Term Sentiment vs Long-Term Stability

Street sentiment has turned positive on the back of a recovery in FMCG demand, and the company’s wellness brands, such as Complan, Sugar Free, and Glucon-D, have contributed to this, Finzhoz said.

Analysts expect FY25–26 to show margin improvement as input costs ease. 

However, Finkhoz cautioned that the company is “not yet a steady compounder,” given its history of volatile profits. For trading gains, wait for a breakout above ₹2,400 to confirm strength, the analyst said.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.

Zydus Wellness’ stock has risen 14.1% so far in 2025.

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