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Last Updated : Nov 14, 2018 01:25 PM IST | Source: Moneycontrol.com

Buy Cadila Health; target of Rs 430: Motilal Oswal

Motilal Oswal is bullish on Cadila Health has recommended buy rating on the stock with a target price of Rs 430 in its research report dated November 04, 2018.

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Motilal Oswal's research report on Cadila Health


CDH's revenue declined ~8% YoY to INR29.6b (our estimate: INR30.4b) in 2QFY19, largely led by de-growth in US business (-20% YoY) and flat growth in domestic formulation (DF) business. Gross margin expanded by ~50bp YoY/QoQ to 66.5%. EBITDA margin contracted by ~320bp (+100bp QoQ) to 23.2% due to higher employee expense (+340bp as % of sales) and other expenditure (+260bp). PAT declined ~17% YoY to INR4.2b (in-line). For 1HFY19, sales stood at INR56.1b (+6% YoY), EBITDA at INR13.3b (+17% YoY) and PAT at INR8.8b (+37% YoY).


Outlook


We remain positive on CDH, considering its robust ANDA pipeline for US market, minimal regulatory hurdles, and outperformance versus industry in DF market. Maintain Buy.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Nov 14, 2018 01:25 pm
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