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Zydus Wellness Ltd has made a series of shareholder-friendly actions along with its strong March-quarter performance. The board of the company has sanctioned the sub-division of equity shares from the face value of ₹10 per share to ₹2 per share with a view to enhance liquidity and ease of access for retail investors. Furthermore, Zydus Wellness announced a final dividend payment of ₹6 per share, evidencing its healthy cash flows as well as a determination to reward shareholders.
Share Sub-Division Approved:
The board has approved subdividing every share of equity ₹10 face value into five shares of ₹2 each. The step is likely to improve stock liquidity and price the shares low enough for a larger investor base to afford them, subject to shareholder and regulatory approvals.
Dividend of ₹6 Per Share:
Zydus Wellness has announced a final dividend of ₹6 per equity share in FY25, a year-on-year increase from the previous fiscal's ₹5 per share. The dividend reflects the company's solid financial standing and maintaining a consistent record of shareholder returns.
Impressive Q4 Financials:
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Revenue: Revenue from operations for the March 2025 quarter was ₹9.13 billion, indicating consistent growth in the company's health and wellness product portfolio.
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Net Profit: Zydus Wellness recorded a consolidated net profit of ₹1.72 billion for Q4, up sharply year on year, demonstrating operational efficacy and margin expansion.
Market and Sector Context:
The firm's performance is against the backdrop of a tough cycle for FMCG and wellness companies, with sector-level margin compression. Zydus Wellness has defied the trend, recording robust profit expansion and a sound balance sheet.
Share Performance:
Zydus Wellness shares are trading near ₹1,827, with a market capitalization of over ₹11,495 crore. The stock has shown resilience, outperforming sector peers in recent months.
Insight
Zydus Wellness's move to sub-divide its shares and raise its dividend indicates management's confidence in the company's growth path and its focus on maximizing shareholder value. The strong Q4 numbers, led by high demand for health and wellness products, put the company well to deliver further momentum in FY26.
Source: Financial Express, Economic Times, INDmoney
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