Views on Cadila Healthcare 2QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Cadila Healthcare 2QFY2016 Results:

"The company posted results better than expected on OPM front. The sales came in at INR 2374cr v/s INR 2500cr estimate, a YoY growth of 15.0%. The key markets like US, India and emerging markets grew YoY by 25.2%, 10.3% and 34.9% respectively. On operating front, the GPM's came in at 66.0% v/s 60.2% in 2QFY2015, leading the OPM's coming in at 22.6% v/s 18.2% in 2QFY2015. The expansion in the OPM was lesser than GPM's on back of high rise in R&D expenditure which rose by 46.7% YoY. The R&D as percent of sales came in at 7.3% v/s 5.7% in 2QFY2015. Thus the OPM expansion lead the net profit to come in at INR 391cr v/s INR 367cr estimates a Yoy growth of 40.6%. We maintain our NEUTRAL stance on the stock."

Shares of CADILA HEALTHCARE LTD. was last trading in BSE at Rs.442.85 as compared to the previous close of Rs. 431.65. The total number of shares traded during the day was 292860 in over 10964 trades.

The stock hit an intraday high of Rs. 454.4 and intraday low of 439.35. The net turnover during the day was Rs. 129597144.

Source : Equity Bulls

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