Buy Cadila Healthcare on dips: Angel Broking

Buy Cadila Healthcare on dips, says Sarabjit Kour Nangra, VP - Research, Angel Broking.

Nangra told CNBC-TV18, "Cadila Healthcare over the years has got re-rated because it has outperformed the pharma industry growth rates and had scaled up its business significantly. Going forward we believe those levers are intact for the company to grow and hence we believe that the recent correction, which has come in is a good opportunity to get into the stock because the valuations which if you look at FY13 number is 16 times which is wherein we find tremendous value for the stock because largecaps easily trade at 20-21 times, so I think there is tremendous value in that stock at this point in time."
The company's trailing 12-month (TTM) EPS was at Rs 26.59 per share. (Jun, 2011). The stock's price-to-earnings (P/E) ratio was 32.90. The latest book value of the company is Rs 102.07 per share. At current value, the price-to-book value of the company was 8.57. The dividend yield of the company was 0.71%.