Markets have recovered massively since its March lows where markets witnessed major selling due to the COVID 19 pandemic. Some stocks have even crossed its pre-COVID highs. Zydus Wellness is one such.

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The stock, on September 21, hit its fresh 52-week high of Rs 1,950, up over 80 percent from its 52-week low of Rs 1,070, hit in March 2020.

Zydus Wellness is one of the leading Indian consumer wellness players with a strong presence in its niche markets. In FY19, the company had acquired the entire portfolio of Heinz India for a consideration of Rs 4,595 crore. The acquition has increased the addressable market size from Rs 3,500 crore to Rs 12,000 crore.

For the June quarter, the company's net profit jumped by nearly 11 percent at Rs 89 crore from Rs 80 crore in the corresponding quarter of previous year. Consolidated revenue from operations totalled Rs 537 crore while earnings before interest, depreciation and tax (EBIDTA) were at Rs 122 crore. Profit before tax after exceptional items was up by 4.1 per cent to Rs 83 crore.

The company said that past quarter was an unprecedented one due to Covid-19 pandemic impacting operations in the early part. However, with the logistical challenges being resolved, approvals for re-starting manufacturing plants and operating warehouses coming in, the company was able to recover from early setbacks.

Brokerage houses have also been positive on the stock. Edelweiss, in a recent report, said, "we believe the company will clock EBITDA/PAT CAGR of 14.2 percent/47.2 percent over FY20-23E riding potent catalysts like: a) Acquisition Synergy benefits; b) superior execution of management; c) Products launch -several new & innovative variants; d) deepening distribution reach & aggressive A&P strategy."

The brokerage initiated coverage on the stock with a 'buy' rating anf expects a 22 percent upside in the next 12 months. It expects the margins to improve with merger synergy and operational efficiency. Also, the equity infusion of Rs 1,100 crore would be utilize to reduce the gross debt, it added.