Prabhudas Lilladher Recommends Accumulate on Zydus Lifesciences, Target Rs 1020

• Prabhudas Lilladher maintains an 'Accumulate' rating on Zydus Lifesciences with a target price of Rs 1,020.
• Q3 EBITDA was largely in line with estimates, with the base business showing steady performance.
• Zydus Lifesciences is developing a robust pipeline of complex products, including injectables, 505(b)2, transdermals, NCE, biosimilars, and vaccines, expected to materialize over the next 2-3 years.
• US sales are projected to decline in FY27E due to erosion in some key products, leading to flat EPS CAGR over FY25-28E.
• Management anticipates 2-3 high-value launches over FY27E/28E, crucial for sustaining US sales momentum.