CLSA maintained buy rating and raised target to Rs 330 from Rs 310 per share.
Cadila Healthcare share price rose 3 percent in early trade on February 6 after the company reported robust numbers on sequential basis.
On February 5, the company registered a 26.8 percent year-on-year fall in consolidated profit for October-December quarter at Rs 373.9 crore against Rs 510.7 crore in corresponding period last year.
However, the profit on sequential basis shot up 249 percent due to low base in Q2FY20.
"Net profit excluding exceptional items for the quarter was up 18 percent QoQ," the company said in its BSE filing.
Consolidated revenue grew 1.7 percent year-on-year (up 8 percent QoQ) to Rs 3,638.1 crore in the quarter ended December 2019.
Credit Suisse | Rating: Neutral | Target: Rs 251 per share
According to Credit Suisse there was a strong beat in the US; the Asacol still drives high concentration.
The US sales largely helped by volume gains, while US growth guidance at mid-to-high single digit but high concentration stays.
India growth is weak as business evolves from restructuring, however, the wellness results were in-line.
Moraiya facility remediation on track and majority of site transfer near completion, it added
Nomura | Rating: Buy | Target: Rs 278 per share
The key focus and large brands recording growth was ahead of company’s average.
Company expects to complete remediation process at Moraiya by Q1FY21.
CLSA | Rating: Buy | Target: Raised to Rs 330 from Rs 310 per share
India & US market are on a strong footing. The PE valuations are attractive, said CLSA.
It raises FY20-22 EPS estimates by 2-10 percent.
Cadila Healthcare was quoting at Rs 277.90, up Rs 6.70, or 2.47 percent on the BSE.Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.
