Zydus Wellness Ltd

CMP: 383

Zydus Wellness Ltd. processes dairy products. The Company produces margarine, butter, and cheese.

Zydus Wellness is a good bet in budding mid-cap space whose valuations have come down in this correction to fair valuations. Its currently trading at a P/E of 23 with decent dividend yields of 1% in the last 12 months. Minimal liability and strong cash & cash equivalents makes it a good buy. Revenues have risen rapidly from 42 Crores to 336 Crores in the last 5 years. Profits have risen from 4 Crores to 60 Crores in the last 5 years. NPM has risen smartly from 10% to almost 18% over 5 years. Buy, accumulate on dips and hold for long term gains.