Zydus Life shares surged 4% after Nomura upgraded the stock to “Buy,” raising its target price to ₹1,140. The upgrade stems from strong growth prospects tied to Sitagliptin and US market opportunities.
Key Insights:
- Sitagliptin Opportunity: Zydus is poised to gain $100-150 million annually from the $300-500 million Sitagliptin market, supported by discounted pricing strategies.
- US Market Resilience: Despite an anticipated 5% dip in US revenues for FY26, Zydus maintains positive growth guidance, effectively managing generic competition in gRevlimid.
- Currency Advantage: With 77% of FY27F exports expected from the US, the appreciating USD bolsters earnings.
Nomura emphasizes Zydus Life’s strategic positioning to balance competition while capitalizing on high-growth segments.
Zydus Life Sciences stock opened at ₹1,005.00 today, reaching a high of ₹1,025.50 and a low of ₹993.25. The stock’s 52-week range spans from a low of ₹686.00 to a high of ₹1,324.30.
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