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.
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