Motilal Oswal 's research report on Cadila Healthcare
CDH delivered in-line performance for 1QFY21. The decline in domestic formulation (DF) and consumer healthcare was more than offset by lower operating cost. This resulted in 20%/26% YoY EBITDA/PAT growth v/s 4% YoY revenue growth. CDH is progressing well to build Injectable/vaccine/biosimilars as additional levers of growth for the next 2-3 years. - We have raised our earnings estimates for FY21/FY22E by 10%/9% to reflect better operating leverage/growth outlook for DF. We continue to value CDH at 21x 12M forward earnings to arrive at TP of INR460. We remain positive on CDH due to robust ANDA pipeline (including injectables/transdermals), renewed strategy in DF and completion of remediation measures at Moraiya. Maintain Buy.
We continue to value CDH at 21x (in line with its 3-year average) 12M forward earnings to arrive at TP of INR460. Maintain Buy.