Cadila Healthcare - 4QFY2015 Result Update - Angel Broking

For 4QFY2015, Cadila Healthcare (Cadila) posted numbers well ahead of our expectations on the OPM and Adj. net profit front. The company posted a growth of 17.3% yoy in sales to Rs. 2,247cr (V/s an expected Rs. 2,262cr), driven by US and Indian formulations. On the operating front, the gross margin came in at 64.3% (V/s an expected 60.4%) V/s 59.4% in 4QFY2014. This aided the operating margin to come in at 20.2% (V/s an expected 17.0%) V/s 16.0% during the corresponding period of last year, ie a yoy expansion of 426bp. Thus, the Adj. PAT came in at Rs. 359cr V/s Rs. 233cr in 4QFY2014, a yoy growth of 54.4%. We maintain our Neutral rating on the stock.

OPM better than expectation: The company posted a growth of 17.3% yoy in sales to Rs. 2,247cr (V/s an expected Rs. 2,262cr), driven by US and Indian formulations. The US and Indian formulations posted a growth of 44.3% and 8.8%, respectively. Other markets de-grew by 1.0% yoy. On the operating front, the gross margin came in at 64.3% (V/s an expected 60.4%) V/s 59.4% in 4QFY2014. This aided the operating margin to come in at 20.2% (V/s an expected 17.0%) V/s 16.0% during the corresponding period of last year, ie a yoy expansion of 426bp. Thus, the Adj. PAT came in at Rs. 359cr V/s Rs. 233cr in 4QFY2014, a yoy growth of 54.4%.

Outlook and valuation: We expect Cadila's net sales to post a 18.0% CAGR to Rs. 11,840cr and EPS to report a 19.6% CAGR to Rs. 81.0 over FY2015-17E. We maintain our Neutral rating on the stock.

Shares of CADILA HEALTHCARE LTD. was last trading in BSE at Rs.1753.85 as compared to the previous close of Rs. 1755.55. The total number of shares traded during the day was 11844 in over 1056 trades.

The stock hit an intraday high of Rs. 1779.5 and intraday low of 1742. The net turnover during the day was Rs. 20820185.

Source : Equity Bulls

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