Zydus Wellness shares showing up to 80% fall in some app today; here's why
Zydus Wellness share-split: Shares of consumer goods player Zydus Wellness might be showing up to an 80 per cent in some trading apps today as the software solutions provider traded ex-split today. All the eligible shareholders of Zydus Wellness, as of the record date, shall see their holding being split in 1:5 ratio. This is their first stock split for the company.
It means all the shares of Zydus Wellness, with a face value of Rs 10 each, shall be split or subdivided into five shares with face value of Rs 2 each as of today. Investors having Zydus Wellness shares in their demat account shall be eligible for this corporate action and the stock price shall be adjusted in the same ratio, that is, 1:5. From today, subdivided or adjusted shares shall be traded.
Shares of Zydus Wellness opened at Rs 522.95 on Thursday, signaling a nearly 80 per cent fall from its previous close at Rs 2,579.10 on Wednesday. The total market capitalization of the company stood close to Rs 16,500 crore mark. The indicated fall was due to the 'subdivision' of its equity shares in 1:5 ratio. However, the stock was seen at Rs 527.95 in early trade, up 2.35 per cent.
Wednesday, September 17 was the last to buy Zydus Wellness shares to become eligible for the aforesaid corporate actions as it marked the record date for it. The stock is under the 'T+1' settlement cycle. The record date determines the eligibility of shareholders for the corporate action. The move aims to increase stock liquidity and make the shares more affordable for retail investors.
What makes stock splits attractive for investors is that they come free of cost. The impact of a bonus issue is straightforward: it increases the number of shares in circulation, which trims down the company’s free reserves and lowers earnings per share (EPS). As a result, the stock price adjusts downward. There is, however, no dilution of equity.
In its filing on August 18, 2025, Zydus Wellness said, "The company has fixed Thursday, September 18, 2025 as the record date for determining entitlement of equity shareholders for the purpose of sub-division/split of equity share of face value of Rs 10 each, into 5 shares of Rs 2 each, as approved by the members of the Company at the 31st annual general meeting held on July 30, 2025.
Zydus Wellness reported a 13.3 per cent year-on-year (YoY) fall in the consolidated net profit at Rs 128 crore, while revenue increased 2.4 per cent YoY to Rs 861 crore for the June 2025 quarter. Ebitda for he quarter stood flat at Rs 156 crore, while Ebitda margins dropped to 18.1 per cent for the reported period.
"Zydus Wellness has acquired 100 per cent stake in Comfort Click (CCL), which operates in UK and major European markets. This marks ZWL’s first overseas acquisition and its entry into the vitamins, minerals and supplements segment. Deal is worth Rs 2,800 crore and is valued at 2x EV/sales. Management expects acquisition to be cash EPS accretive from the first year of acquisition," said Sharekhan.
"Diversified portfolio in VMS segment, digital-first approach and opportunity to expand in international markets makes CCL a strategic fit. ZWL trades at 36 times/30 times its FY26E/FY27E EPS, respectively. We maintain a Buy with a revised target price of Rs 2,688," it added. (Target is pre-split).
Ahmedabad-based Zydus Wellness is an Indian consumer goods company, which produces nutrition and skincare products. Its brands include Glucon-D, Sugar Free, EverYuth, Nutralite, Complan, Ritebite and Nycil. It is a subsidiary of the pharmaceutical company Zydus Lifesciences.
Zydus’ acquisition positions it to scale up its wellness range globally, a strategic step toward building a diversified, consumer-focused beauty, health & wellness portfolio. Incentives of its management team will be aligned with Zydus shareholders as it will continue to lead operations, with part of their proceeds re-invested in growth shares and tied to performance incentive, said Anand Rathi Shares & Stock Brokers.
"We expect the deal to be 1 per cent/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 target price of Rs 2,995 (pre-split) as the acquisition catapults the company into the >Rs50bn revenue orbit with a focussed play on health & wellness," it added.
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