1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Zydus wellness

Discussion in 'Fundamental Analysis' started by laveshdixit, Jan 5, 2022.

  1. laveshdixit

    laveshdixit Responder

    Joined:
    Aug 14, 2019
    Messages:
    60
    Likes Received:
    55
    Occupation:
    Software
    Hi,

    Any views on Zydus Wellness nness currently. The stock has gone down around 25% from 2500 to 1900. Any specific reasons for the same or normal correction.

    Regards
    Lavesh
     
    laveshdixit, Jan 5, 2022
    Share #1
    shabbir likes this.
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,669
    Likes Received:
    1,938
    I see it as normal correction. When a company does a large acquisition, there is a 3 years of cool off period when earnings and other things integrate and gets streamline. This is what is happening with Zydus.

    I would like to see the ROCE back above 20% in the coming years than worry too much on the price movement.
     
    shabbir, Jan 7, 2022
    Share #2
  3. laveshdixit

    laveshdixit Responder

    Joined:
    Aug 14, 2019
    Messages:
    60
    Likes Received:
    55
    Occupation:
    Software
    Where can we see historic ROCE for stocks, screener? Is it a paid subscription requirement
    Any other place?
     
    laveshdixit, Jan 7, 2022
    Share #3
    shabbir likes this.
  4. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,669
    Likes Received:
    1,938
    shabbir, Jan 7, 2022
    Share #4
  5. emailsaravanans

    emailsaravanans Active Member

    Joined:
    Jul 23, 2018
    Messages:
    53
    Likes Received:
    28
    Since 2019 its ROCE is under 10 including the last quarter. Is it a concern?
     
    emailsaravanans, Jan 24, 2022
    Share #5
  6. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,669
    Likes Received:
    1,938
    Yes it is a concern but I would like to give it the time needed to absorb the acquisition it did which was size of its own market cap.

    The time needed to absorb such a large acquisition is 3 to 5 years.
     
    shabbir, Jan 25, 2022
    Share #6
  7. emailsaravanans

    emailsaravanans Active Member

    Joined:
    Jul 23, 2018
    Messages:
    53
    Likes Received:
    28
    Till then is it a good time to accumulate?
     
    emailsaravanans, Jan 25, 2022
    Share #7
    shabbir likes this.
  8. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,669
    Likes Received:
    1,938
    I think so.
     
    shabbir, Jan 25, 2022
    Share #8
  9. laveshdixit

    laveshdixit Responder

    Joined:
    Aug 14, 2019
    Messages:
    60
    Likes Received:
    55
    Occupation:
    Software
    Further fall in Zydus with big volumes. Now below 1550.
    What calls for this fall. From 2500 to 1550, around 40% fall now.
     

    Attached Files:

    laveshdixit, Feb 10, 2022
    Share #9
  10. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,669
    Likes Received:
    1,938
    Weak Results. Or rather results not as expected by the market
     
    shabbir, Feb 11, 2022
    Share #10
  11. laveshdixit

    laveshdixit Responder

    Joined:
    Aug 14, 2019
    Messages:
    60
    Likes Received:
    55
    Occupation:
    Software
    It should just be much more than the last quater results. Coz for last few years, if you see Dec quarter is a slow growth quarter. Also Dec 21 results (yoy) is not bad.

    It has been consistently falling and market is thinking that the growth in businessn is slow and would continue to be.

    Will got through concall to understand if the company is projecting low growth as well.
     
    laveshdixit, Feb 12, 2022
    Share #11
    shabbir and emailsaravanans like this.
  12. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,669
    Likes Received:
    1,938
    I didn't mean weak quarterly results but weak results overall after the integration with Heinz India
     
    shabbir, Feb 14, 2022
    Share #12