This Lifesciences Company Secures USFDA Approval for Eluxadoline Tablets with 180-Day Exclusivity; Stock Price Logged 135.25 per cent Returns in 3 years

With a PE ratio of 20x, the company trades at a discount compared to the industry PE of 28x. The company has ROCE of 22.3 per cent and ROE of 20.7 per cent.  

Zydus Lifesciences Limited has achieved a significant milestone by receiving final approval from the United States Food and Drug Administration (USFDA) for its Eluxadoline Tablets, available in 75 mg and 100 mg dosages. This approval positions Zydus as one of the initial ANDA applicants with a paragraph IV certification for these tablets, granting them 180 days of shared generic drug exclusivity. Eluxadoline, a mu-opioid receptor agonist, is used in the treatment of irritable bowel syndrome with diarrhoea (IBS-D) in adults. The tablets will be manufactured at Zydus Lifesciences Ltd (SEZ) in Ahmedabad. The annual sales for Eluxadoline tablets in the United States reached USD 243.7 million as of January 2025, according to IQVIA MAT. This approval marks Zydus' 419th overall and highlights their continued expansion in the pharmaceutical sector, having filed 483 ANDAs since FY 2003-04.

Zydus Lifesciences Limited, originally established as Cadila Healthcare in 1995, is a prominent player in the pharmaceutical industry, headquartered in Ahmedabad, India. The company focuses on addressing unmet healthcare needs through innovation and a commitment to improving global health. Zydus reported a turnover of over Rs. 14,253 crores in FY20, showcasing substantial growth from its initial Rs. 250 crores. As of March 2025, Zydus' stock is priced at Rs 882.55, with a market capitalization of Rs 88,805.18 crores. Despite a 10.3 per cent decline in its 1-year return, the company boasts a remarkable 135.25 per cent return over three years, illustrating its significant growth trajectory. 

In the Quarterly Results of Dec-24, the revenue stood at Rs 5,269.10 crore, reflecting a YoY growth of 16.96 per cent and a QoQ growth of 0.61 per cent. The net profit for the quarter was Rs 1,023.50 crore, marking a YoY increase of 29.62 per cent and a QoQ rise of 12.32 per cent. The net profit margin for Dec-24 was 19.42 per cent, compared to 17.40 per cent in Sep-24 and 17.53 per cent in Dec-23.

For the full-year results of FY24, the revenue was Rs 19,547.40 crore, growing by 13.40 per cent from FY23. The net profit for FY24 stood at Rs 4,536.90 crore, showing a growth of 27.39 per cent over FY23. The net profit margin for FY24 was 18.22 per cent, higher than 14.04 per cent recorded in FY23.

As of December 2024, the shareholding pattern is as follows: Promoters hold 74.98 per cent, FIIs hold 7.53 per cent, DIIs hold 10.61 per cent, Government holds 0.05 per cent, and Public holds 6.85 per cent.

With a PE ratio of 20x, the company trades at a discount compared to the industry PE of 28x. The company has ROCE of 22.3 per cent and ROE of 20.7 per cent.  

Investors must keep this Large-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.