Target: ₹2,995
CMP: ₹2,330.00
Zydus Wellness’ acquisition of UK-based Comfort Click broadens its footprint across the UK, EU and USA. The transaction positions it to scale up its wellness range globally, a strategic step toward building a diversified, consumer-focused beauty, health & wellness portfolio.
A digital-first healthcare brand focused on VMS, the company is strong in the UK and Europe (with plans to enter the US). In FY25, it reported £134m revenue (₹1,600 crore) with a 2-/5-year CAGR of >57 per cent and £21m EBITDA (about ₹250 crore, around 16 per cent margin). Its portfolio is anchored by three brands: WeightWorld (plant-based supplements, vitamins, collagen, probiotics, sports nutrition), Maxmedix (paediatric VMS gummies) and Animigo (natural pet health supplements), which complemens Zydus’ nutrition & wellness range.
We expect the (Comfort Click) deal to be 1/20 per cent FY26/27e EPS accretive for Zydus while we introduce FY28e and expect further upside to our revenue/margin estimates for the acquired entity. We retain a Buy with a higher 12-month ₹2,995 TP, 30x Sep’27e EPS (₹2,570 earlier, 33x FY27e EPS) as the acquisition catapults the company into the over ₹5,000 crore revenue orbit with a focused play on health & wellness, which barely a few global companies can boast of.
Key risks: Failed product launches/acquisitions, price-based competition and rise in forex volatility, geopolitical factors affecting the international business.