Share Price Target of 80%: Why Motilal Oswal Is Bullish on This Stock

Synopsis:- The FMCG stock carries an 80% upside potential with a ₹760 bull-case target. Revenue grew 32% year-on-year in Q2FY26, valuations remain 30–35% below peers, and expanding global presence alongside health-focused categories supports long-term growth despite near-term profitability pressure.

India’s FMCG sector has expanded strongly, driven by consumer-led demand and rising product prices, particularly for essentials. The market stood at US$167 billion in 2023 and is projected to reach US$615 billion by 2027. GST rationalisation is expected to make daily essentials and FMCG products more affordable, boosting consumption while supporting the growth of e-commerce and quick-commerce channels.

With a market capitalisation of Rs 14,735.61 crore, the shares of Zydus Wellness Ltd were trading at Rs 459.65 per share, increasing around 8 percent as compared to the previous closing price of Rs 423.85 apiece. In a bull case scenario, Motilal Oswal has turned optimistic on the FMCG stock, assigning a ‘Buy’ rating with a target of ₹760. This implies an upside of nearly 80% from ₹423.85, reflecting expectations of strong earnings growth and improving fundamentals.

As per Motilal Oswal, Zydus Wellness stands out as a diversified health and nutrition player with leadership across sugar substitutes, glucose powders, skincare, and nutrition beverages. Its strong brands ensure dominance in core categories, while recent acquisitions expand presence in high-growth wellness segments.

Motilal Oswal highlights that Zydus is structurally aligned with global consumption trends such as low/no sugar, high protein, preventive healthcare, and functional nutrition. A diversified portfolio, rising premiumisation, and stronger digital reach provide visibility for steady revenue growth and margin expansion over the medium term.

From a valuation perspective, the brokerage notes the stock trades at 22x P/E and 16x EV/EBITDA FY28E, a 30–35% discount to FMCG peers. Using an SoTP approach, offering an attractive risk-reward profile in the sub-₹150 billion consumer space. The company has reported strong top-line growth, with Q2FY26 revenue zooming by 32 percent from Rs 493 crore in Q2FY25 to Rs 650 crore in Q2FY26. However, during the same time frame, net profit turned into a loss from a profit of Rs 21 crore to a loss of Rs 53 crore.

Zydus Wellness has established a strong global footprint across Asia, the Middle East, Africa, Europe, Oceania, and the US. This wide presence highlights its ambition to scale beyond India, diversify revenue streams, and tap into evolving global health and nutrition consumption trends, strengthening long-term growth visibility.

Overall, Zydus Wellness presents a compelling long-term story backed by strong brands, favourable health trends, and global expansion. While near-term profitability remains under pressure, attractive valuations, portfolio diversification, and improving growth visibility support the bull case outlook highlighted by Motilal Oswal.

Zydus Wellness is a leading Indian consumer health and nutrition company with a strong presence in everyday wellness products. Backed by trusted brands across nutrition, skincare, and sugar substitutes, the company focuses on preventive health, premiumisation, and evolving consumer lifestyle trends in India and global markets.

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