Prabhudas Lilladher Upholds ‘Accumulate’ Call on Zydus Lifesciences with a Rs 1,191 Target

Prabhudas Lilladher has once again turned its gaze toward Zydus Lifesciences, reaffirming an “Accumulate” rating and anchoring a target price of roughly Rs 1,191 per share. The recommendation comes fresh off a research note dated November 5, 2026, and reflects the brokerage’s confidence in the company’s near‑term earnings resilience.

In the latest quarter, Zydus Lifesciences posted an EBITDA that was, for the most part, in line with analysts’ expectations. That modest beat was bolstered by a lift in revenues across its core markets, offsetting the dip that the firm saw in its Revlimid franchise. Management has been quick to plug that gap, launching a series of niche products that are beginning to find traction.

Looking ahead, the broker highlights a fairly robust pipeline – a mix of injectables, 505(b)(2) candidates, transdermal therapies, new chemical entities, biosimilars and even vaccines. Most of these are slated to hit the market within the next two to three years, a timeline that could add a nice tailwind to the company’s top line.

On the U.S. front, Prabhudas Lilladher expects sales to compound at about 10 % CAGR between FY 26 and FY 28, despite the inevitable erosion of a few legacy products. The firm’s management has signalled the intent to roll out two to three high‑value launches in FY 27‑28, and getting those products out on schedule will be crucial for sustaining the growth momentum.

That said, the analysts do trim the earnings outlook a bit, shaving 4‑8 % off the FY 28‑29 EPS forecast. The revised EPS figure still leaves room for upside, especially if the pipeline clears regulatory hurdles without a hitch.

Valuation-wise, the brokerage applies a 24‑times multiple to the projected September 2028 EPS, which lands the target price squarely at about Rs 1,200 – essentially in line with the Rs 1,191 figure quoted earlier. In short, the recommendation suggests a modest, but steady, appreciation potential for investors willing to hold the stock over the medium term.

For anyone looking to dig deeper, the full set of recommendations and the underlying assumptions are available through Prabhudas Lilladher’s research portal.