Cadila Healthcare Ltd.

March 13, 2017 . Equities Desk

US business to get booster dose after Moraiya facility received clearance

Cadila Healthcare (Cadila) is one of India’s leading pharmaceutical company and is vertically integrated with presence across the value chain. It manufactures finished dosage forms, active pharmaceutical ingredients, animal healthcare products and wellness products.

View & Valuvation

With its key plant ‘Moraiya’ receiving no observations from the USFDA, we factor in faster product approvals as all the key oral solids, transdermal & nasal products are from this facility. Further, EBITDA margins are expected to expand by 70bps over FY16-19E on account of a) exclusivity (up to 180 days) on certain product launches and b) shifting of business mix towards high-margin specialty products. We expect revenue/PAT to grow at a CAGR of 11.5%/14.4% over FY16- 19E. Hence, we initiate Cadila with a BUY rating with a TP of Rs.491 based on 22x FY19E EPS.

Research Report Cadila Healthcare Limited

Investments in equity shares, debentures, etc., are not obligations of, or guaranteed by Wealth India Financial Services Pvt. Ltd., and are subject to investment risks. Click here to read our full disclaimer.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.