Zee Business analyst Kushal Gupta recommends investors consider buying Zydus Lifesciences for a one-year period. As of Monday, May 27, the stock closed at Rs 1,058.6 per share on the BSE, reflecting a 1.6 percent increase, or Rs 17.35 per share.
Market Overview
On May 27, the domestic equity benchmarks, Nifty 50 and Sensex, closed on a flat note despite hitting record highs earlier in the day due to a rally in banking and financial services stocks. The Sensex ended at 75,390.50, down 19.89 points or 0.03 percent, while the Nifty 50 closed at 22,932.45, up 24.65 points or 0.11 percent.
Zydus Lifesciences: A Promising Pharma Stock
Analysts are suggesting Zydus Lifesciences as a potential buy. Here’s a detailed look at the reasons and target prices:
Analyst Recommendations
Kushal Gupta of Zee Business: Gupta suggests buying Zydus Lifesciences with a one-year target price of Rs 1,300 per share, implying an upside of over 22 percent from the Monday closing price. He notes that FIIs have been increasing their stake in the company since the October–December 2022 quarter, and the company reported strong Q4 numbers.
Brokerage Insights
KRChoksey: The brokerage has downgraded its recommendation from ‘buy’ to ‘accumulate’, setting a target price of Rs 1,186 per share. This target represents an upside of more than 12 percent from Monday’s closing price. KRChoksey highlights the company’s strong performance in the US, Emerging, and European markets, improved product mix, lower input costs, and better gross margins in consumer wellness as key factors for its valuation.
Technical Analysis
Sugandha Sachdeva of SS WealthStreet: Sachdeva points out that Zydus Lifesciences has been in a secular uptrend for the past two years. The stock broke out above Rs 670 in December 2023 and recently hit a new all-time high of Rs 1,172.50. She suggests buying on dips, provided the support is around Rs 915–920. Her medium-term targets are Rs 1,250 initially, with the potential to reach Rs 1,550.
Zydus Lifesciences: Performance and Market Cap
52-week high: Rs. 1,171.95
52-week low: Rs 498.90
Market cap: Rs 1,06,514.90 crore
Recent returns: The stock has increased by 10 percent in one month, 68 percent in six months, and over 100 percent in one year.
Conclusion
Zydus Lifesciences shows promising growth potential, backed by strong financial performance and positive market sentiment. Analysts recommend considering this stock for medium- to long-term investment, especially on dips, to capitalize on its upward trajectory.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions. The author and the publication are not responsible for any financial losses that may occur as a result of investing in stocks or any other financial instruments.
