ICICI Securities Drops BULLISH Report on Zydus Wellness: Rs 550 Target & BUY Call Revealed!

Analyst Verdict: ICICI Securities maintains its BUY rating on Zydus Wellness, setting a DCF-based target price of INR 550.

Q2FY26 Performance & Strategy: The second quarter of fiscal year 2026 was transitional, marked by flat like-for-like (LFL) revenues affected by GST disruptions and seasonal weakness. However, the strategic acquisition of Comfort Click propelled reported revenue growth by 32% year-on-year. This acquisition expands Zydus Wellness's international reach and provides a crucial entry into the high-margin Vitamins, Minerals & Supplements (VMS) market.

Profitability & Outlook: Profitability was constrained by higher overheads associated with integrating the acquired entity and continued brand investments. ICICI Securities believes Zydus Wellness's core strategy remains robust and anticipates disciplined execution will lead to sustained, profitable growth through FY26-FY27. Earnings estimates have been adjusted for acquisition cost amortisation.

Impact: This analyst report, with its positive outlook and specific target price, is likely to influence investor sentiment and potentially drive demand for Zydus Wellness shares. The validation of the company's acquisition strategy and future growth trajectory is a key takeaway for stakeholders. Rating: 7/10.

Difficult Terms: * **LFL revenues**: Like-for-Like revenues, comparing performance of existing businesses over time. * **GST-led disruption**: Temporary business challenges due to India's Goods and Services Tax implementation. * **Vitamins, Minerals & Supplements (VMS)**: A key health and wellness product category. * **DCF-based target price**: A stock valuation method projecting future cash flows. * **Amortisation**: Accounting for the cost of intangible assets over their useful life. * **FY26E/FY27E**: Estimated performance for fiscal years 2026 and 2027.