Views On Cadila Healthcare results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP-Research, Pharma) on Cadila Healthcare results:

Cadila Healthcare (CMP:Rs 940/TP:-Rs 1,064/Upside:-13.2%)

"Cadila Healthcare, posted numbers lower than expected on sales and OPM front, while the net profit came in higher than expected. On the sales front, the company posted a strong quarter with 22.4% yoy growth in net sales to Rs 1916cr V/s Rs 1,979cr. For exports, the company's exports grew by 38.3% yoy, driven by US markets, which grew by 74.7% yoy. Other markets posted a lackluster growth during the period. Indian formulation markets on the other hand grew by 9.4% yoy. On the OPM front, it posted an OPM of 16.0% V/s 17.0% expected , expanding 102bps.While, the gross margins dipped by 100bps, dip in R&D expenses by 25.0% yoy aided the margin expansion during the period. Thus, the net profit came in at Rs 238.9cr V/s Rs 198cr expected, on back of lower than expected tax and depreciation charges. We maintain our accumulate with a price target of Rs 1,064."

Source : Equity Bulls

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