Views on Cadila Healthcare Ltd 1QFY2018 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking):

"Cadila Healthcare posted poor set of numbers, sales came in at INR 2,136cr V/s INR 2,216cr expected V/s INR 2,500cr in 1QFY2017, a YoY de-growth of 3.6%, mainly driven by the Indian formulation sales dip. Indian formulation sales (INR 637.4cr), a YoY dip of 18.9%. Its key market USA (INR 965cr), 13.8% YoY growth. On operating front, the EBITDA margins came in at 10.1% V/s 18.4% expected V/s 20.4% in 1QFY2017, mainly on back of lower than expected sales during the quarter and a 20.0% and 25.3% rise in the employee and R&D expenses respectively. Gross margins came in at 61.2% V/s 65.1% in 1QFY2017; while R&D expenses were 9.5% of sales in 1QFY2018 V/s 7.3% of sales in 1QFY2017. Thus, the PAT came in at INR 138 cr V/s INR 492cr expected V/s INR 355cr in 1QFY2017. We maintain our SELL rating on the stock, with a price target of INR 426."

Shares of CADILA HEALTHCARE LTD. was last trading in BSE at Rs.485.1 as compared to the previous close of Rs. 482.95. The total number of shares traded during the day was 91465 in over 2558 trades.

The stock hit an intraday high of Rs. 501 and intraday low of 475. The net turnover during the day was Rs. 44592507.

Source : Equity Bulls

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