BUY

Axis Alpha Zydus Lifesciences Ltd Target Price

28th September, 2023 Pharma 667
CMP: 606 Stop Loss: 575 Duration: 20 Days

Zydus Lifesciences Ltd. BSE Sensex

225

185

145

105

65

25

May-23
Apr-22

Feb-23
Aug-22

Nov-22

Sep-23
• We recommend a BUY on Zydus Lifesciences Ltd with a Target Price of Rs 667 and upside
of 10% from CMP of Rs 606 and Stop Loss Rs 575.

• The company’s NCE launches (Lipaglyn and Oxemia) and biosimilar portfolio should continue to
support this improvement in growth trajectory ahead. We estimate peak sales potential of more
than Rs 500 Cr and Rs 600 CR products (Lipaglyn and Oxemia) for the next 2-3 years.

• US business is likely to register mid to high single digit growth. Key products that could shape the
growth in its US business are transdermal products (4-5 launches expected), gTrokendi XR and
gRevlimid.
 BUY
Axis Alpha Zydus Lifesciences Ltd Target Price
28th September, 2023 Pharma 667

Axis Alpha Performance Tracker

Recommendation Recommended Closure Profit/Loss
Stock name Recommendation Target Status
date Price price after brokerage
20-04-2022 ACC Ltd Buy 2,080 2,250 Closed 2,180 4,308
25-04-2022 Adani Wlmar Ltd Buy 753 790 Closed 795 5,078
26-04-2022 PSP Projects Ltd Buy 540 590 Closed 567 4,500
29-04-2022 HealthCare Global Enterprises Buy 621 675 Closed 585 -6,297
29-04-2022 Varun Beverages Ltd Buy 1,080 1,155 Closed 1,145 5,519
04-05-2022 Britannia Industries Buy 3,400 3,600 Closed 3,315 -3,000
09-05-2022 NOCIL Ltd Buy 237 271 Closed 264 10,892
18-05-2022 Biocon Ltd Buy 330 363 Closed 313 -5,652
19-05-2022 Dhanuka Agritech Ltd Buy 714 786 Closed 669 -6,803
20-05-2022 JK Lakshmi Cement Ltd Buy 439 480 Closed 462 4,739
24-05-2022 Shree Cement Ltd SELL 21,840 20,400 Closed 21,000 3,346
25-05-2022 Asian Paints Ltd Buy 2,906 3,110 Closed 2,702 -7,520
01-06-2022 Ambuja Cements Ltd Buy 370 405 Closed 350 -5,905
22-06-2022 Lupin Ltd SELL 620 558 Closed 659 -6,790
22-07-2022 P I Industries Ltd Buy 3,027 3,330 Closed 3,185 4,720
28-07-2022 Mold-Tek Packaging Ltd Buy 779 856 Closed 856 9,384
29-07-2022 Shree Cement Ltd SELL 20,450 19,100 Closed 21,300 -4,656
29-07-2022 SBI Life Insurance Company Ltd Buy 1,262 1,338 Closed 1,313 3,541
19-08-2022 KPR Mill Ltd Buy 619 675 Closed 575 -7,608
24-08-2022 NMDC Buy 119 131 Closed 124 3,702
30-08-2022 J K Cements Ltd Buy 2,670 2,900 Closed 2,830 5,493
01-09-2022 Mahindra & Mahindra Ltd Buy 1,290 1,420 Closed 1,221 -5,849
01-09-2022 Endurance Technologies Buy 1,525 1,678 Closed 1,448 -5,549
08-09-2022 HeidelbergCement India Ltd Buy 193 214 Closed 207 6,754
20-09-2022 Abbott India Ltd Buy 18,000 19,800 Closed 18,825 4,083
23-09-2022 Eicher Motors Ltd Buy 3,691 4,060 Closed 3,505 -5,539
28-09-2022 Titan Company Limited Buy 2,605 2,760 Closed 2,525 -3,571
04-10-2022 Dr Reddys Laboratories Ltd Buy 4,400 4,840 Closed 4,610 4,273
06-10-2022 Shriram Transport Finance Buy 1,210 1,330 Closed 1,283 5,533
17-10-2022 Infosys Ltd Buy 1,487 1,570 Closed 1,574 5,351
17-10-2022 Indian Hotels Company Ltd Buy 315 350 Closed 331 4,579
18-10-2022 ACC Ltd Buy 2,260 2,480 Closed 2,380 4,810
20-10-2022 Navin Fluorine International Ltd Buy 4,370 4,800 Closed 4,555 3,733
31-10-2022 Astral Ltd Buy 1,985 2,185 Closed 2,080 4,286
31-10-2022 PSP Projects Ltd Buy 575 630 Closed 605 4,717
01-11-2022 Bharti Airtel Ltd Buy 832 880 Closed 848 1,423
03-11-2022 APL Apollo Tubes Ltd Buy 1,080 1,188 Closed 1,120 3,204
04-11-2022 Dalmia Bharat Ltd Buy 1,660 1,830 Closed 1,745 4,620
04-11-2022 DCB Bank Ltd Buy 117 129 Closed 125 5,996
09-11-2022 JK Lakshmi Cement Ltd Buy 657 725 Closed 687 4,066
14-11-2022 Manappuram Finance Ltd Buy 109 119 Closed 116 5,922
16-11-2022 Rites Ltd Buy 372 410 Closed 388 3,801
30-11-2022 Asian Paints Ltd Buy 3,145 3,460 Closed 2,840 -10,198
30-11-2022 Shree Cement Ltd Buy 23,280 25,375 Closed 24,200 3,452
08-12-2022 Sun Pharmaceutical Industries Buy 985 1,084 Closed 1,026 3,662
08-12-2022 KNR Constructions Buy 261 287 Closed 277 5,630
12-12-2022 National Aluminium Co Buy 122 134 Closed 124 1,139
14-12-2022 Vedanta Limited Buy 315 347 Closed 299 -5,579
11-12-2020 UPL Ltd Buy 452 490 Open NA -
14-12-2022 H. G. Infra Engineering Ltd Buy 586 645 Closed 620 5,302
15-12-2022 Birla Corporation Ltd Buy 1,070 1,180 Closed 998 -7,229
15-12-2022 HealthCare Global Enterprises Buy 289 318 Closed 302 3,998
21-12-2022 Solara Active Pharma Sciences Buy 450 495 Closed 481 6,389
21-12-2022 IOL Chemicals & Phama Buy 385 421 Closed 421 8,851
28-12-2022 Rites Ltd Buy 318 350 Closed 337 5,475
28-12-2022 J K Cements Ltd Buy 2,930 3,220 Closed 2,765 -6,131
02-01-2023 APL Apollo Tubes Ltd Buy 1,090 1,199 Closed 1,134 3,537
 BUY
Axis Alpha Zydus Lifesciences Ltd Target Price
28th September, 2023 Pharma 667

Axis Alpha Performance Tracker

Recommendation Recommended Closure Profit/Loss
Stock name Recommendation Target Status
date Price price after brokerage
05-01-2023 Techno Electric & Eng. Co Buy 350 385 Closed 368 4,643
05-01-2023 Astral Ltd Buy 2,000 2,200 Closed 2,090 4,000
11-01-2023 Zydus Lifesciences Ltd Buy 450 495 Closed 428 -5,389
12-01-2023 PNC Infratech Ltd Buy 316 347 Closed 331 4,247
13-01-2023 Infosys Ltd Buy 1,495 1,585 Closed 1,585 5,520
16-01-2023 Federal Bank Ltd Buy 139 153 Closed 132 -5,536
19-01-2023 Ashok Leyland Ltd Buy 146 160 Closed 153 3,952
19-01-2023 PSP Projects Ltd Buy 696 765 Closed 727 3,954
23-01-2023 Camlin Fine Sciences Ltd Buy 159 177 Closed 150 -6,160
01-02-2023 Polycab India Ltd Buy 3,024 3,235 Closed 2,918 -4,005
02-02-2023 K E C International Ltd Buy 468 512 Closed 497 5,697
06-02-2023 Indian Hotels Company Ltd Buy 312 343 Closed 325 3,506
08-02-2023 Tata Consultancy Services Ltd Buy 3,472 3,650 Closed 3,385 -3,006
20-02-2023 PNC Infratech Ltd Buy 314 345 Closed 295 -6,551
27-02-2023 Tech Mahindra Ltd Buy 1,145 1,215 Closed 1,110 -3,557
20-03-2023 K E C International Ltd Buy 458 504 Closed 478 3,867
31-03-2023 KNR Constructions Buy 251 276 Closed 237 -6,078
10-04-2023 Global Health Ltd Buy 490 540 Closed 512 3,990
11-04-2023 PSP Projects Ltd Buy 685 752 Closed 711 3,296
11-04-2023 Escorts Kubota Buy 1,880 2,070 Closed 1,982 4,926
11-04-2023 Hindustan Unilever Ltd Buy 2,535 2,780 Open NA NA
12-04-2023 Mahindra & Mahindra Ltd Buy 1,206 1,325 Open NA NA
20-04-2023 Gland Pharma Ltd Buy 1,370 1,510 Open NA NA
21-04-2023 Ujjivan Small Finance Bank Buy 27 30 Open NA NA
27-04-2023 Automotive Axles Ltd Buy 2,380 2,620 Closed 2,490 4,122
28-04-2023 Indo Count Industries Buy 134 147 Closed 147 9,448
03-05-2023 Lemon Tree Hotels Buy 88 97 Open NA NA

Note: Notional investment of Rs 1,00,000; Cumulative Strike rate 68.10%

 BUY
Axis Alpha Zydus Lifesciences Ltd Target Price
28th September, 2023 Pharma 667

About Axis Alpha

OBJECTIVE:
The objective of Axis Alpha is to generate absolute return for investors and traders. Axis Alpha is
fundamental short term stock call based on the events, valuations, market direction or a mix of
these. The duration of the call can be as short as a week to as long as a month (30 days). These
short term calls are generated by the fundamental research team of Axis securities and the calls
can differ from the fundamental long-term recommendation on the stock. The average expected
returns for these calls will be 5%. All the calls will be provided with Stop Losses.

EVENTS BASED:
The calls are based on the following factors. While this is not a complete list of factors but most
of the calls will be based on the following:

• Quarterly results: Results are likely to be better or worse than expectations resulting
in a +/-5% move for the stock

• Mergers and acquisition: Mergers or acquisitions by companies can result in

significant price movements in either directions

• Major blocks or capital raising programs results in significant price movements

Regulatory announcements affecting the industry

• Competition announcements impacting the industry as a whole. Example Jio cutting

tariffs impacts all the telecom players

• Others

VALUATIONS BASED:
Significant run up or compression can result in short term opportunities for corrections in either
direction.

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Risk on or risk off mode of market has impact on stocks depending on stocks beta, leverage
and nature of industry. These provide opportunities.

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This product is suitable for seasoned investors and traders as we stop losses get triggered
based on market conditions. Also there can be high degree of volatility as some months can be
very bad and some could be exceptionally good. However, the endeavour will be to deliver solid
absolute returns.
 BUY
Axis Alpha Zydus Lifesciences Ltd Target Price
28th September, 2023 Pharma 667

Disclosures:

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

1. Axis Securities Ltd. (ASL) is a SEBI Registered Research Analyst having registration no. INH000000297. ASL, the Research Entity (RE) as defined in the
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Sr.
Name Designation E-mail
No

1 Naveen Kulkarni Chief Investment Officer naveen.kulkarni@axissecurities.in

2 Neeraj Chadawar Quantitative Head neeraj.chadawar@axissecurities.in

3 Preeyam Tolia Research Analyst preeyam.tolia@axissecurities.in

4 Omkar Tanksale Research Analyst omkar.tanksale@axissecurities.in

5 Uttamkumar Srimal Research Analyst uttamkumar.srimal@axissecurities.in

6 Ankush Mahajan Research Analyst ankush.mahajan@axissecurities.in

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13 Dhananjay Choudhury Research Associate dhananjay.choudhury@axissecurities.in

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15 Bhavya Shah Research Associate Bhavya1.shah@axissecurities.in

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 BUY
Axis Alpha Zydus Lifesciences Ltd Target Price
28th September, 2023 Pharma 667
DEFINITION OF RATINGS
Ratings Expected absolute returns over 12-18 months
BUY More than 10%
HOLD Between 10% and -10%
SELL Less than -10%
NOT RATED We have forward looking estimates for the stock but we refrain from assigning valuation and recommendation

UNDER REVIEW We will revisit our recommendation, valuation and estimates on the stock following recent events

NO STANCE We do not have any forward looking estimates, valuation or recommendation for the stock

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INP000000654
NEERAJ Digitally signed by NEERAJ
CHADAWAR
CHADAWAR Date: 2023.09.28 10:36:08 +05'30'