Views on Cadila Healthcare Ltd 1QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP- Research Pharma, Angel Broking) on Cadila Healthcare Ltd 1QFY2017 Results:

Results better than expected on all fronts

Cadila Healthcare (CMP: INR 347 / TP:INR 400 / Upside: 15.3%)

"For 1QFY2017, the company posted lower than expected results on sales front, while net profit came in higher than expected on back of lower taxes during the quarter. On sales front, the company posted sales of INR 2216cr V/s INR 2,607cr expected V/s INR 2,378cr in 1QFY2016, a YoY de-growth of 6.8%. The dip in sales was on back of USA business (INR 8, 48.3cr), which registered a YoY dip of 13.9%. Indian formulations (INR 786.2cr) posted a YoY growth of 6.2%. Consumer wellness (INR 116.1cr) and Animal healthcare & others (INR 109.7cr) posted a YoY growth of 12.2% and 43.85 YoY respectively. On the operating profit front, the EBITDA margins came in at 20.4% V/s 20.9% expected and v/s 20.1% in 1QFY2016. The dip in the OPM was saved, as the GPM improved from 65.1% V/s 64.3% in 1QFY2016. The Adj. net profit came in at INR 355cr V/s INR 489cr expected and V/s INR 352cr in 1QFY2016, a YoY growth of 0.8%. We maintain our BUY rating on the stock."

Shares of CADILA HEALTHCARE LTD. was last trading in BSE at Rs.375.85 as compared to the previous close of Rs. 368.9. The total number of shares traded during the day was 198645 in over 4637 trades.

The stock hit an intraday high of Rs. 378.75 and intraday low of 366. The net turnover during the day was Rs. 74044875.

Source : Equity Bulls

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