Shares of Zydus Wellness rallied nearly 10 percent over the past two sessions after domestic brokerage Motilal Oswal initiated coverage on the stock with a ‘Buy’ rating, citing strong growth prospects and a potential upside of up to 35 percent from current levels.
Brokerage view
Motilal Oswal said Zydus Wellness stands out as a diversified health and nutrition company with leadership positions across several consumer wellness categories. The brokerage highlighted the company’s strong brand portfolio and its increasing focus on health-led products, which positions it well to benefit from rising consumer awareness and premiumisation trends.
Key growth drivers
According to the brokerage, the company’s growth outlook is supported by:
- Category leadership in select wellness segments
- New product launches aligned with health and nutrition trends
- Improving distribution reach and stronger execution
- Scope for margin expansion through operating leverage and cost efficiencies
Motilal Oswal believes these factors could drive sustained earnings growth over the medium term.
Market reaction
The positive brokerage commentary triggered strong buying interest, pushing Zydus Wellness shares up around 10 percent in just two trading sessions. The move reflects renewed investor confidence in the company’s strategy and long-term growth visibility.
Outlook
With demand for health, nutrition, and wellness products continuing to rise, analysts see Zydus Wellness as well-placed to capture incremental growth. If execution remains on track, the stock could continue to attract interest from both institutional and long-term investors.
