Sharekhan's research report on Cadila Healthcare
Cadila’s Consolidated revenues grew 14.5% y-o-y to Rs. 4,025 crore driven by a strong 42.8% y-o-y growth in the India business while US sales declined by 10.6% y-o-y. A solid presence in chronic and sub-chronic segments (which are the key growth drivers for the Indian pharmaceutical markets) and plans to launch 35-40 new products provide ample growth visibility for India business. Part of Cadila’s US business is under price erosion, but new launches Including injectables and high potential products, growth in the base products would lead to a healthy growth in the US business.
Outlook
Strong prospects and earnings visibility, a sturdy balance sheet, healthy return ratios and multiple growth triggers are key positives for Cadila. We retain our Buy recommendation on the stock with unchanged PT of Rs. 720.
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