Cadila Healthcare - 1QFY2017 Result Update - Angel Broking

For 1QFY2017, the company posted lower than expected results. The company posted sales of Rs. 2,216cr V/s Rs. 2,607cr expected and V/s Rs. 2,267cr in 1QFY2016, a yoy de-growth of 2.2%. On the operating front, the EBITDA margin came in at 20.4% V/s 20.9% expected and V/s 20.3% in 1QFY2016. The dip in the OPM was saved in spite of an underperformance on the sales front as the GPM improved to 65.1% V/s 64.8% in 1QFY2016. The Adj. net profit came in at Rs. 356cr V/s Rs. 489cr expected and V/s Rs. 462cr in 1QFY2016, a yoy de-growth of 22.9%. We maintain our accumulate rating.

Results lower than expected: Company posted sales of Rs. 2,216cr V/s Rs. 2,607cr expected and V/s Rs. 2,267cr in 1QFY2016, a yoy de-growth of 2.2%. The dip in sales was owing to the USA business (Rs. 848.3cr) posting a yoy dip of 13.9%. On the operating front, the EBITDA margin came in at 20.4% V/s 20.9% expected and V/s 20.3% in 1QFY2016. The dip in the OPM was saved in spite of an underperformance on the sales front as the GPM improved to 65.1% V/s 64.8% in 1QFY2016. The Adj. net profit came in at Rs. 356cr V/s Rs. 489cr expected and V/s Rs. 462cr in 1QFY2016, a yoy de-growth of 22.9%.

Outlook and valuation: We expect Cadila's net sales to post a 17.8% CAGR to Rs. 13,148cr and EPS to report a 15.8% CAGR to Rs. 20.0 over FY2016–18E. We maintain our accumulate rating on the stock.

Shares of CADILA HEALTHCARE LTD. was last trading in BSE at Rs.364 as compared to the previous close of Rs. 369.15. The total number of shares traded during the day was 154118 in over 5686 trades.

The stock hit an intraday high of Rs. 379.7 and intraday low of 359.6. The net turnover during the day was Rs. 56683464.

Source : Equity Bulls

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