Zydus Wellness Limited Valuation
ZYDUSWELL · Fast Moving Consumer Goods · Current price ₹515
Is Zydus Wellness Limited undervalued?
We estimate the fair value of Zydus Wellness Limited at ₹444 per share, against a market price of ₹552. That puts the share price about -19.6% above our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Fair multiple (P/E) (₹444). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Zydus Wellness Limited spans ₹400 to ₹488. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
Zydus Wellness Limited trades at a P/E of 83.1x and a P/B of 3.1x, with a dividend yield of 0.2%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for Zydus Wellness Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹400 – ₹488
Why this method for this business
Relative PE and PEG are appropriate for an asset-light FMCG business with a durable moat and normalized earnings power.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
- dcf: Not suitable for an asset-light business with high growth potential and uncertain cash flows
- peg: Used as a secondary check to validate the relative PE approach
What was missing
- Lack of forward EPS estimates for a comprehensive DCF analysis
- Limited analyst coverage affecting dispersion analysis
What drives it
16 inputs, grouped by how strong each claim is
- Sector-median P/E
- 46.73×
- Peers used
- 6
- EPS (TTM)
- 5.92 ₹/share
- Own-history median P/E
- 154.6×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Anchor correction
- peer anchor 46.7x diverges 3.3x from 5yr own-history 154.6x (no size-comparable peer) — anchor blended 0.6 toward own-history → 111.5x
- Term: quality
- -6.0%
- Term: growth
- +5.4%
- Term: capital_allocation
- -7.1%
- Term: financial_strength
- +7.7%
- Term: history
- +11.6%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
peer-anchor mismatch — deep own-history used instead
quality 43/100 (weak/erratic returns) → discount
durable ~13% CAGR (ROCE 6% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: falling ROCE / weak cash generation → discount
financial strength: effectively debt-free → premium
history: market paid +39% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- -32.7%
- Fair-multiple confidence
- 72%
- Fair P/E
- 75×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Zydus Wellness Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyUnderstand the ratios
More on Zydus Wellness Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.