Cadila Healthcare 3QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Cadila Healthcare 3QFY2016 Results:

Cadila Healthcare (CMP: INR 312 / TP: INR 352/ Upside: 12.8% )

"Cadila Healthcare posted robust results during the quarter, on the net profit front, while the sales came in lower. For 3QFY2016, the company posted sales of INR 2342cr V/s INR 2600cr expected a YoY growth of 8.4%. The growth on sales front was impacted on back domestic markets. Exports (INR 1398.8cr) which posted a 10.6% YoY during the quarter, while domestic markets (INR 993.2cr) posted a 6.4% YoY growth. In exports the key market like US (INR 1017.7cr) a YoY growth of 19.6%, while other key market like Europe (INR 76.2cr) posted a dip of 10.0%, while JV and alliances (INR 100.2cr) posted a dip of 17.7% YoY. In domestic markets, the Indian formulation markets posted a YoY growth of 11.0%.

On operating front, the OPM came in at 21.0% V/s 21.4% expected and V/s 19.3% in 3QFY2015. The expansion in the OPM was driven by the GPM expansion which expanded to 65.9% V/s 64.8% in 3QFY2015 and almost flat growth in the staff and other expenditure. R&D expenditure, during the quarter came in at 10.1% V/s 8.7% in 3QFY2015. Also during the quarter, the company posted other income of INR 112cr V/s INR 39.9cr in 3QFY2015.This, aided the net profit to come in at INR 389cr V/s INR 353cr V/s INR 282cr, YoY growth of 38.2%. The Adj. net profit came in at INR 390cr V/s INR 278cr in 3QFY2015, a YoY growth of 40.0%. We maintain our ACCUMULATE rating with a price target of INR 352."

Shares of CADILA HEALTHCARE LTD. was last trading in BSE at Rs.326.8 as compared to the previous close of Rs. 312. The total number of shares traded during the day was 477815 in over 12621 trades.

The stock hit an intraday high of Rs. 329.55 and intraday low of 310.8. The net turnover during the day was Rs. 154923944.

Source : Equity Bulls

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