Zydus Lifescience Stock available for buy or sell?

 Introduction :

Zydus Lifesciences, previously called Zydus Cadila, is a leading Indian pharmaceutical company that develops, makes, and sells a variety of healthcare products, such as generic medicines, biotech products, and active ingredients. The company emphasizes research and development and aims to make healthcare affordable and accessible. Zydus operates worldwide and focuses on areas like diabetes, heart diseases, and vaccines.

Analysis :-

Technical:- 

FOUR MOST HAPPENING CHART PATTERNS YOU SHOULD KNOW ABOUT

Okay, so with market capitalisation of 1.05 lakhs crores and current share price of 1051 zydus Lifescience is 26% down from its all time High. 

Zydus Lifescience Stock price has seen a good correction of more than 25%. Right now, on 7 oct 2024 candlestick chart is forming a halt area with price range of 1088 on upper side and 1038 on down side. Now either this halt area can be an accumulation to move price upward which can end the correction in the stock price or its a distribution to further the correction. If Stock price can sustain above 1038 level for upcoming days and eventually break above 1088 level with a day's closing then we can assume that the stock will rally. But in technical analysis one should always have risk management in place because traps are inevitable to avoid no matter what we do and if someone says otherwise then its an arrogance. Remember the market is always superior.

Fundamental:- 

The company of our subject today has a very good fundamental backing up its stock price.

ROCE 22.3 %

ROE 20.7 % 

Compounded profit growth 3 Years: 18%

Compounded Sales Growth 3 years: 11%

Equity capital: 101 cr

Reserves: 19,729 cr

Debt : 804 cr

Promoters :- 74.98%

PE :- 25.4

Zydus Lifescience has been reducing debt without letting it hurt growth of the company. High promoter holding shows their skin in the game. The company has good reserves compared to its debt and also has a very good pipeline for products waiting to get approvals. The company has seen the highest OPM this year in last 10 years with net profit standing at 3973 cr, almost doubled compared to last year.