Cadila Healthcare Ltd - Yet another weak performance; Recovery distant away - Emkay

Reco: HOLD
CMP: Rs 708
Target Price: Rs 777

- Q1FY14 Results – Revenues at Rs 16.4bn (up 2.7% yoy), EBITDA at Rs 2.9bn (down 20% yoy) & APAT at Rs 2.0bn (down 4.2% yoy)

- Weak growth in revenues were due to muted performance in US and India business while Japan and Brazil reported negative growth during the quarter

- EBIDTA margin was down 496bps yoy & 31bps qoq to 17.5% due to weak growth in US & India business and higher employee cost

- We expect sales growth of 14.0% and 19.6% in FY14E & FY15E driven by domestic and US business. Downgrade to Hold rating with TP of Rs 777 (16x EPS FY15E)

Source : Equity Bulls

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